Indiana Paycheck Calculator (2026)
Estimate your take-home pay in Indiana after federal tax, FICA, and IN state income tax, using official 2026 rates.
Estimated take-home pay · Indiana
$48,650 / year
Monthly
$4,054
Biweekly
$1,871
Hourly
$23.39
- Gross pay
- $60,000
- Federal income tax
- −$5,020
- IN state income tax
- −$1,741
- Social Security (6.2%)
- −$3,720
- Medicare (1.45%)
- −$870
- Take-home pay
- $48,650
- Effective tax rate
- 18.9%
How Indiana taxes paychecks in 2026
Indiana taxes wages at a flat 2.95%. A personal exemption of $1,000 (single) / $2,000 (married) also reduces taxable income.
Single filer · 2026 IN brackets
| 2.95% | Over $0 |
Married filing jointly · 2026 IN brackets
| 2.95% | Over $0 |
Every Indiana county levies a local income tax (roughly 0.5%–3%) that is not included here.
What makes Indiana paychecks different
Indiana's state rate fell to 2.95% on January 1, 2026 and is scheduled to reach 2.9% in 2027, with further cuts to as low as 2.55% possible from 2030 if revenue triggers are met. Like Illinois, Indiana has no standard deduction, only a $1,000 personal exemption, so the flat rate applies to nearly all wages. Renters can deduct up to $3,000 of rent, which is worth about $90 at the current rate.
The state rate is only half the story. All 92 Indiana counties levy their own income tax, and the rate that applies is set by the county where you lived on January 1 (or where you worked, if you lived out of state). Rates for 2026 range from 0.5% in Porter County to more than 3% in a few rural counties. Marion County (Indianapolis) charges 2.02%, which brings a resident's combined rate to 4.97%, while neighboring Hamilton County (Carmel and Fishers) charges 1.1%. Employers withhold both taxes together and none of the county tax is included in the estimate above.
Indiana has reciprocity with Kentucky, Michigan, Ohio, Pennsylvania and Wisconsin, so a Louisville or Cincinnati commuter working in Indiana pays only their home state's income tax, although the Indiana county tax can still apply to nonresidents who work in a county. Sales tax is a flat 7% statewide with no local additions.
Updated for 2026: Indiana's flat rate dropped from 3.0% to 2.95% on January 1, 2026, and six counties (Carroll, Grant, Greene, Howard, Shelby and Union) raised their local income tax rates the same day.
Indiana take-home pay examples (2026)
Single filer, standard deduction, no dependents. Click a salary for the full 50-state comparison.
| Gross salary | Net / year | Net / month | Net / biweekly | Effective rate |
|---|---|---|---|---|
| $35,000 | $29,300 | $2,442 | $1,127 | 16.3% |
| $45,000 | $37,040 | $3,087 | $1,425 | 17.7% |
| $55,000 | $44,780 | $3,732 | $1,722 | 18.6% |
| $65,000 | $52,520 | $4,377 | $2,020 | 19.2% |
| $75,000 | $59,410 | $4,951 | $2,285 | 20.8% |
| $85,000 | $66,150 | $5,512 | $2,544 | 22.2% |
| $100,000 | $76,260 | $6,355 | $2,933 | 23.7% |
| $120,000 | $89,740 | $7,478 | $3,452 | 25.2% |
| $150,000 | $109,396 | $9,116 | $4,208 | 27.1% |
How Indiana compares
Indiana's top rate of 2.9% is #39 of 51 US jurisdictions. For comparison, a $60,000 single filer keeps $48,650 in Indiana versus $50,390 in no-tax Texas and $47,961 in California. See all rates on the 2026 state income tax table.
Indiana paycheck FAQ
How much is $60,000 after taxes in Indiana?+
A single filer earning $60,000 in Indiana takes home about $48,650 per year ($4,054/month) in 2026: $5,020 goes to federal income tax, $4,590 to FICA, and $1,741 to Indiana state taxes.
What is the Indiana income tax rate in 2026?+
Indiana has a flat 2.95% income tax rate in 2026.
Does Indiana tax 401(k) contributions?+
No. Traditional 401(k) contributions reduce both your federal and Indiana taxable income, so deferring salary lowers this year's tax bill.
What taxes come out of a paycheck in Indiana?+
Every Indiana paycheck loses federal income tax (10%–37% brackets) and FICA (6.2% Social Security up to $184,500 + 1.45% Medicare). Indiana taxes wages at a flat 2.95%.
Is Indiana a high-tax or low-tax state for take-home pay?+
Indiana's top marginal rate of 2.9% ranks #39 highest of the 51 US jurisdictions in 2026. At $60,000, a single filer keeps 81% of gross pay.