How Indiana taxes your paycheck
Indiana taxes wages at a single flat rate of 2.95%, so every dollar of taxable income is taxed the same way no matter how much you earn. Before the rates apply, Indiana allows a personal exemption of $1,000 for single filers and $2,000 for married couples filing jointly.
On a $75,000 salary, a single filer owes about $2,183 in Indiana income tax for 2026, an effective state rate of 2.91%.
Indiana county income taxes are not included.
| Rate | Single: taxable income | Married filing jointly: taxable income |
|---|---|---|
| 2.95% | $0 | $0 |
Take-home pay in Indiana at common salaries
These figures use the 2026 federal brackets and standard deduction, Social Security and Medicare, and Indiana state tax, for someone paid every two weeks with no 401(k) or other pre-tax deductions. Enter your own salary and deductions in the calculator above for a personal estimate.
| Salary | Indiana tax (single) | Take-home, single | Per paycheck, single | Take-home, married |
|---|---|---|---|---|
| $40,000 | $1,151 | $33,170 | $1,275.75 | $35,039 |
| $60,000 | $1,741 | $48,650 | $1,871.13 | $50,859 |
| $80,000 | $2,331 | $62,780 | $2,414.60 | $66,339 |
| $100,000 | $2,921 | $76,260 | $2,933.06 | $81,819 |
| $150,000 | $4,396 | $109,396 | $4,207.52 | $118,819 |
How Indiana compares with neighboring states
On a $75,000 salary, Indiana's income tax is the 14th-lowest of the 50 states and DC (1st = lowest), counting the 9 states that don't tax wages at all.
Among neighboring states, Ohio takes the least state income tax on $75,000 ($1,612) and Illinois the most ($3,568).
What this estimate leaves out
Indiana also allows county or city income taxes. Where they apply, they average about 0.35% of adjusted gross income (Tax Foundation, 2023 data), so check your local rate and add it to this estimate. State disability insurance and paid family-leave contributions and local income taxes are not included, and the federal figures assume the standard deduction with no credits such as the Child Tax Credit. Head-of-household and married-filing-separately returns use the state's single schedule, which a few states set separately.
Shopping in Indiana as well? The Indiana sales tax calculator adds state and local sales tax to any price, and the paycheck calculator is available for all 50 states and DC.