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Indiana
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2026 · Indiana · Flat 2.95%, $1,000 per person, 92 county taxes

Indiana Paycheck Calculator

Indiana has no standard deduction and a personal exemption of just $1,000 per person, so its 2.95% rate starts almost immediately — at about $1,100 of salary — and applies to nearly all of a paycheck. What it does not include is the county income tax, which every one of Indiana's 92 counties levies on residents and which is withheld by the employer on top of the state rate. This calculator applies the state rate exactly and explains the county line rather than guessing at it.

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$2,200 per child under 17, $500 per other dependent, phased out above the income limit.

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Your Indiana paycheck, period by period

An Indiana salary is quoted per year and paid in slices: $52,000 is $1,000 a week, $2,000 every two weeks, $2,166.67 twice a month or $4,333.33 once a month. The annual total does not move; the deposit and the withholding taken from it do.

Indiana contributes one line to the stub before the county tax, and on $52,000 paid every two weeks it is $57.87 per check — against $156.15 of federal income tax, $124.00 of Social Security and $29.00 of Medicare. That state line is 2.95% of $51,000, which is salary less the $1,000 personal exemption. Paid weekly the state line is $28.93 and paid monthly it is $125.38; the annual figure, $1,504.50, is the same in all three cases, and the county line sits underneath it.

Same salary, four pay schedules. The annual figure does not change; only the size of each check does.
Pay frequencyGross per checkNet per checkNet per year
Weekly$1,000.00$816.49$42,458
Bi-weekly$2,000.00$1,632.98$42,458
Semi-monthly$2,166.67$1,769.06$42,458
Monthly$4,333.33$3,538.13$42,458

What comes out of an Indiana paycheck in 2026

Four deductions come out of an Indiana paycheck: federal income tax, Social Security, Medicare and Indiana income tax. Almost every Indiana employee also has a fifth line for county income tax, which is withheld by the employer at the rate of the county where the employee lives.

Federal income tax

Federal tax is progressive: each slice of taxable income carries its own rate, so a raise never re-prices the dollars already earned. For a single filer in 2026 the bands are 10% to $12,400 of taxable income, 12% to $50,400, 22% to $105,700, 24% to $201,775, 32% to $256,225, 35% to $640,600 and 37% above that. A married couple filing jointly gets bands twice as wide up to the top bracket.

Federal taxable income is salary minus pre-tax deductions minus the standard deduction: $16,100 single, $32,200 joint, $16,100 married filing separately, $24,150 head of household. A single filer on $52,000 has $35,900 of federal taxable income and pays $4,060 across the year, about 7.8% of salary, even though the last dollar sits in the 12% band.

Social Security and Medicare

Social Security takes 6.2% of gross wages up to an annual wage base of $184,500 in 2026, so the largest employee contribution is $11,439; the employer matches it. Medicare takes 1.45% of every dollar with no ceiling, plus 0.9% on wages above $200,000 single or $250,000 joint that the employer does not match. On $52,000 the two lines come to $3,224 and $754.

Indiana income tax

Indiana's calculation is a subtraction of $1,000 per person and a multiplication by 2.95%. There is no standard deduction at all, and no phase-out of the exemption at any income level. On $52,000 a single filer has $51,000 of Indiana taxable income and pays $1,504.50 across the year, or $57.87 per bi-weekly check.

Because the allowance is so small, the Indiana base is very close to gross pay. On $52,000 the federal return removes $16,100 before applying its brackets and Indiana removes $1,000 before applying 2.95%, so Indiana taxes $15,100 more of the same salary. The rate is low enough that the tax is still modest — $1,504.50 against $4,060 federally — but the state takes its share from almost the first dollar rather than from a slice above a deduction.

Indiana starts from federal adjusted gross income, so a traditional 401(k) contribution, an HSA contribution and a Section 125 health premium all reduce the state base as well as the federal one. A 6% deferral on $52,000 removes $3,120 and cuts the Indiana line from $1,504.50 to $1,412.46, a saving of $92.04 against $374.40 of federal saving on the same contribution.

A small exemption, and a county tax in all 92 counties

Indiana's design is unusual in both directions. The rate is one of the lowest of any state that taxes wages, at 2.95% for 2026 after a series of steps down from 3.23%, but the allowance is the smallest of any state on this site that offers one: a flat $1,000 per person, claimed for the filer, a spouse on a joint return and each dependent. There is no standard deduction to add to it and nothing is indexed.

The practical effect is that Indiana tax begins at $1,100 of salary. A part-time employee working ten hours a week at $15 an hour has Indiana tax withheld; the same employee in Kentucky pays nothing to the state until $3,360 and in Georgia until $12,000. For a full-time worker the difference fades quickly, because $1,000 of allowance is worth only $29.50 a year at this rate — but it makes the Indiana state line appear on paychecks where most states show zero.

Then there is the county tax, which is the part that decides most Indiana take-home questions. Every one of Indiana's 92 counties levies a county income tax, and the rate is set county by county rather than statewide. The employer withholds it based on the employee's county of residence, not the county of work, which is the opposite of Michigan's city tax and of most local wage taxes in the country. An Indiana employee who moves across a county line is expected to file a new withholding form, and the rate on the stub changes even though the employer, the job and the salary have not.

Residents pay their home county's rate on all of their income. Non-residents pay the rate of the county where they work, and only on the wages earned there. A Kentucky resident commuting to a job in Indianapolis therefore has Indiana county tax withheld on that salary while owing nothing to a Kentucky county for it — one of the few places where the local line on a stub crosses a state border.

County rates vary widely, from a fraction of a percent to more than three percent in the highest counties, and they apply to the same wages the state rate applies to. The Tax Foundation's comparison of local wage taxes puts Indiana at about 0.35% of adjusted gross income statewide — roughly a third of Kentucky's local burden and more than twice Michigan's. Inside a high-rate county the local line can be larger than the 2.95% state line, and inside a low-rate county it is a rounding error.

That tax is not applied by this calculator, because it depends on an address rather than on a salary. Every Indiana figure on this page is therefore a state-only figure and an upper bound on take-home pay: the deposit will be lower by the county rate, and how much lower depends entirely on which of the 92 counties the employee lives in.

Indiana, Kentucky and Illinois on the same salary

Three flat-rate neighbours, three allowance designs: Indiana removes $1,000 per person, Kentucky removes $3,360 once and Illinois removes $2,925 per person. The assumptions are a single filer, bi-weekly pay, no dependents and no pre-tax deductions, and no local or county tax is included for any of the three.

State income tax on the same salary, single filer, 2026
SalaryIndianaKentuckyIllinois
$52,000$1,505$1,702$2,429
$100,000$2,921$3,382$4,805
$150,000$4,396$5,132$7,280

At $52,000 Indiana takes $1,504.50, Kentucky $1,702.40 and Illinois $2,429.21. Indiana wins by $197.90 and Illinois loses by $924.71. The gaps widen in straight lines because all three states apply a fixed deduction to a flat rate: $461.90 and $1,884.71 at $100,000, then $736.90 and $2,884.71 at $150,000.

Indiana's win over Kentucky comes from the rate, not the allowance. Its $1,000 exemption is less than a third of Kentucky's $3,360, but 2.95% against 3.5% is worth more than the base difference at every salary in this table. On a joint return with two children the allowances are $4,000 in Indiana and $3,360 in Kentucky, and Indiana's lead widens to $286.40.

The ranking reverses once local taxes are counted. Indiana's county taxes average about 0.35% of income statewide and Kentucky's occupational taxes about 0.93%, so a Kentucky household inside a taxing city and an Indiana household in a low-rate county can easily end up the other way round. Neither line is in this table, and neither state's state-line ranking should be read as a ranking of total burden.

Indiana take-home pay by salary

The table below fixes one set of assumptions — single filer, bi-weekly pay, no dependents, no pre-tax deductions, no county income tax — so the rows are comparable down the column. The last four rows convert an hourly rate at 40 hours a week into the annual salary it represents.

Indiana's state rate starts at 2.83% on $25,000, reaches 2.88% at $40,000 and 2.92% at $100,000, then 2.94% at $300,000. Those numbers sit closer to the 2.95% headline rate than any other state on this site, because the $1,000 exemption is the smallest allowance here: there is simply not enough deduction to pull the effective rate down, so the rate is the rate almost from the first dollar.

Read the net per year column as the amount that reaches a bank account across twelve months, before the county tax. If you are paid hourly, the calculator multiplies the rate you enter by the hours and by 52; overtime and unpaid weeks move the annual figure, and the annual figure is what both the federal brackets and the 2.95% are applied to.

Single filer, bi-weekly pay, no dependents, no pre-tax deductions
Annual payGross per checkState tax per yearNet per checkNet per yearTotal effective rate
$40,000$1,538.46$1,151$1,275.75$33,17017.1%
$50,000$1,923.08$1,446$1,573.44$40,91018.2%
$60,000$2,307.69$1,741$1,871.13$48,65018.9%
$75,000$2,884.62$2,183$2,284.98$59,41020.8%
$100,000$3,846.15$2,921$2,933.06$76,26023.7%
$125,000$4,807.69$3,658$3,578.67$93,04625.6%
$150,000$5,769.23$4,396$4,207.52$109,39627.1%
$200,000$7,692.31$5,871$5,502.17$143,05728.5%
$250,000$9,615.38$7,346$6,762.94$175,83729.7%
$300,000$11,538.46$8,821$7,936.78$206,35631.2%
$15/hr × 40h ($31,200/yr)$1,200.00$891$1,013.78$26,35815.5%
$20/hr × 40h ($41,600/yr)$1,600.00$1,198$1,323.38$34,40817.3%
$25/hr × 40h ($52,000/yr)$2,000.00$1,505$1,632.98$42,45818.4%
$30/hr × 40h ($62,400/yr)$2,400.00$1,811$1,942.58$50,50719.1%

Filing status and dependents in Indiana

Filing status changes Indiana's line only by changing the count of $1,000 exemptions. A single filer on $52,000 claims one and pays $1,504.50. A married couple on the same salary claims two and pays $1,475.00, a difference of $29.50 — which is 2.95% of $1,000, and is the second-smallest marriage benefit on this site after Kentucky, where a joint return gets the same single deduction and the state line does not move at all. Head of household claims one exemption for the filer and nothing extra, so a single parent on $52,000 pays the same $1,504.50 as a single filer with no children, even though the federal return treats the two very differently.

Dependents are worth $1,000 each, or $29.50 a year. A single filer on $52,000 with two children pays $1,445.50 instead of $1,504.50. That is a real allowance but a small one: the same two children in Georgia remove $8,000 of income and save $415.20, and in Kansas they remove $4,640 and save more than $250.

Married filing separately claims one $1,000 exemption and half the federal bracket width. In Indiana the state line is identical to a single filer's, so the decision is entirely about the federal return, and it is usually worse than filing jointly.

Assumptions and sources

Ruleset 2026.1, verified 2026-10-31. Federal brackets and the standard deduction come from IRS Rev. Proc. 2025-32 (§4.01 and §4.14). Social Security and Medicare rates, the $184,500 wage base and the 0.9% additional Medicare threshold come from IRS Publication 15 (2026), Circular E. The Child Tax Credit amounts are the 2026 figures published by the IRS.

Indiana's rate is 2.95% for 2026. The personal exemption is $1,000 for the filer, $2,000 on a joint return and $1,000 for each dependent. Indiana has no standard deduction, no dependent credit and no phase-out of the exemption at any income level.

Not modelled: county income tax, which all 92 Indiana counties levy on residents at rates set county by county and which averages about 0.35% of adjusted gross income statewide; the earned income tax credit; the credit for taxes paid to another state; the 529 deduction and the other Indiana deductions on Schedule 1; wage garnishments, union dues, post-tax deductions, bonuses withheld at supplemental rates and mid-year pay changes. Figures are estimates, not a filing.

Frequently asked questions

Does Indiana have a state income tax?

Yes, at a flat 2.95% for 2026, down from 3.23% a few years earlier. Indiana has no standard deduction; the only allowance is a $1,000 personal exemption per person.

What is Indiana's standard deduction?

Indiana has none. The allowance is a $1,000 personal exemption, claimed for the filer, a spouse on a joint return and each dependent. It is not indexed for inflation and does not phase out.

Does Indiana have county income taxes?

Yes, and every one of the 92 counties levies one. The rate is set county by county, applies to residents, and is withheld by the employer based on the employee's county of residence rather than the county of work. It averages about 0.35% of income statewide and is not included in this calculator.

How much is taken out of a paycheck in Indiana?

On $52,000 paid bi-weekly, $367.02 comes out of a $2,000 check: $156.15 of federal income tax, $124.00 of Social Security, $29.00 of Medicare and $57.87 of Indiana income tax. That leaves $1,632.98, or 81.6 cents of every dollar, before the county tax.

At what salary does Indiana income tax start?

About $1,100. The personal exemption is $1,000 and the rate applies to everything above it, so Indiana tax is withheld from almost the first dollar — earlier than in any other state on this site that offers an allowance.

How much is a $100,000 salary in Indiana after tax?

$2,933.06 per bi-weekly check, or $76,259.50 across the year, for a single filer with no dependents and no pre-tax deductions, before the county tax. Indiana takes $2,920.50 of that.

Why is my Indiana tax almost exactly 2.95% of my salary?

Because the $1,000 exemption is small. On $52,000 the Indiana rate works out to 2.89% of salary and by $300,000 it is 2.94%. No other state on this site gets that close to its headline rate, because no other state gives so little away before applying it.

Does Indiana give an exemption for children?

Yes, $1,000 per dependent, worth $29.50 a year at 2.95%. It is the same amount as the personal exemption for an adult, so a child and a spouse are worth exactly the same.

Is Indiana cheaper than Kentucky?

Yes, at every salary, on the state line. Indiana's 2.95% beats Kentucky's 3.5% by more than the difference in their allowances: $1,504.50 against $1,702.40 on $52,000. Once county and city taxes are counted the order can reverse, because Kentucky's local burden is roughly three times Indiana's.

Do 401(k) and HSA contributions reduce Indiana tax?

Yes. Indiana starts from federal adjusted gross income, so a traditional 401(k) contribution, an HSA contribution and a Section 125 health premium all reduce the state base. A 6% deferral on $52,000 cuts the Indiana line from $1,504.50 to $1,412.46.

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