2026 Indiana income tax brackets
All filing statuses
| Taxable income | Rate |
|---|---|
| over $0 | 2.95% |
How Indiana taxable income is figured
Indiana has no standard deduction. A personal exemption of $1,000 (single), $2,000 (married filing jointly) or $1,000 (head of household) comes off before the rate applies. Dependents aren't included. Pre-tax 401(k), health and HSA deductions are assumed to reduce Indiana wages the same way they reduce federal wages.
Local income taxes in Indiana
ALL 92 Indiana counties levy a county income tax on residents (based on county of residence on Jan 1), withheld by employers; 2026 rates run roughly 0.3%-3.0% (e.g., Marion County/Indianapolis 2.02%). Official rates are published annually by the Indiana DOR in Departmental Notice #1.
Local taxes are shown for information only. The calculator doesn't add them to your result.
Minimum wage, tips and overtime in Indiana
The minimum wage used for Indiana is $7.25 an hour. Tipped employees may be paid a cash wage of $2.13 with a tip credit of up to $5.12, as long as wages plus tips reach the full minimum. Check a shift with the tipped wage calculator.
No daily overtime rule; overtime follows the federal FLSA standard of 1.5x for hours over 40 in a workweek.
Indiana take-home pay at common salaries
| Salary | Federal | IN state | FICA | Take-home / yr | Per biweekly check |
|---|---|---|---|---|---|
| $40,000.00 | $2,620.00 | $1,150.50 | $3,060.00 | $33,169.50 | $1,275.75 |
| $60,000.00 | $5,020.00 | $1,740.50 | $4,590.00 | $48,649.50 | $1,871.13 |
| $85,000.00 | $9,870.00 | $2,478.00 | $6,502.50 | $66,149.50 | $2,544.21 |
| $120,000.00 | $17,570.00 | $3,510.50 | $9,180.00 | $89,739.50 | $3,451.52 |
Single filer, paid biweekly, no pre-tax deductions, 2026 rules. Computed by the same engine as the calculator above.
Indiana paycheck FAQs
- What is the Indiana income tax rate in 2026?
- Indiana taxes wages at a flat 2.95% rate.
- How much is taken out of a $60,000 salary in Indiana?
- For a single filer paid biweekly with no pre-tax deductions: federal income tax $5,020.00, Indiana income tax $1,740.50, Social Security $3,720.00 and Medicare $870.00. That leaves $48,649.50 a year, or $1,871.13 per paycheck.
- Does Indiana have a standard deduction?
- Indiana has no standard deduction. A personal exemption of $1,000 (single), $2,000 (married filing jointly) or $1,000 (head of household) comes off before the rate applies. Dependents aren't included.
- Does Indiana have local income taxes?
- ALL 92 Indiana counties levy a county income tax on residents (based on county of residence on Jan 1), withheld by employers; 2026 rates run roughly 0.3%-3.0% (e.g., Marion County/Indianapolis 2.02%). Official rates are published annually by the Indiana DOR in Departmental Notice #1.
- What is the tipped minimum wage in Indiana?
- $2.13 an hour in cash wages, with a tip credit of up to $5.12, so tips must bring the total to at least $7.25.
Sources for Indiana figures
Every Indiana figure on this page was last checked on against these sources:
- https://payroll.org/news-resources/news/news-detail/2025/12/12/six-indiana-counties-state-have-tax-rate-changes-in-2026 — payroll.org (tax year 2026, checked 2026-10-18)
- https://www.indystar.com/story/news/local/2026/09/03/indiana-minimum-wage-living-wage-labor-day-2026-monday-september-7/91576662007/ — indystar.com (tax year 2026, checked 2026-10-18)
Federal figures: see the methodology page.
Nearby states
More Indiana pay tools
- Overtime pay in Indiana
- Indiana tipped wage calculator
- All state paycheck calculators
- How the IN math works
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