Indiana Paycheck Calculator
↻ Updated 2026 tax yearSee your real take-home pay in Indiana for 2026 — after federal income tax, Social Security and Medicare (FICA) and Indiana state income tax.
How Indiana taxes your paycheck
Indiana taxes wages at a flat state rate of 2.95%. Rather than a standard deduction, Indiana reduces taxable income through personal exemptions, so the state figure is calculated on income after those exemptions rather than a flat deduction. The calculator above applies the 2.95% state rate to estimate the state income tax withheld from your pay.
The state's low 2.95% flat rate tells only half the story in Indiana, because every county adds its own local income tax on top — meaning what you actually pay depends heavily on where you live, not just the state rate.
Indiana's county Local Income Tax (LIT)
Every Indiana county levies its own Local Income Tax, commonly about 1% to 3%, withheld based on your county of residence rather than where you work. For many Hoosiers this is a meaningful add-on that can rival or exceed the state rate itself. Because the exact rate depends on your specific county, the calculator above models state income tax only, not local tax, so your real deduction may be a point or more higher than shown.
Frequently asked questions
What is the Indiana income tax rate for 2026?
Indiana uses a flat state rate of 2.95% for 2026, applied to income after personal exemptions rather than a standard deduction. On top of that, your county adds its own local income tax, so your total rate is higher than the state figure alone. Enter your salary above to see the estimated state tax on your pay.
Does Indiana have local income taxes?
Yes — and it is universal. Every Indiana county levies a Local Income Tax (LIT), commonly around 1% to 3%, withheld based on your county of residence. For many Hoosiers this meaningfully increases the total tax taken out beyond the flat 2.95% state rate.
- ·IRS Rev. Proc. 2025-32 — 2026 inflation adjustments — Tax year 2026 brackets & standard deduction
- ·IRS Topic 751 — Social Security & Medicare withholding rates
- ·Tax Foundation — 2026 State Income Tax Rates and Brackets — State wage-tax estimate; excludes local income taxes
RealMoneyIQ provides free educational calculators, not financial, tax, investment or legal advice. Results are estimates based on the assumptions you enter and publicly published rates; your actual outcome will differ. Always confirm decisions with a licensed professional who knows your full situation.