Indiana Income Tax Calculator 2026

Calculate your Indiana state income tax for 2026. Indiana has a flat 0.0295% income tax rate.

$
Deduction

Federal Income Tax

$7,670.00

Effective Tax Rate

10.23%

Marginal Tax Rate

22%

FICA (SS + Medicare)

$5,737.50

Total Tax Burden

$13,407.50

After-Tax Income

$61,592.50

Tax Calculation Breakdown

Gross Income$75,000.00
Above-the-Line Deductions- $0.00
Adjusted Gross Income (AGI)$75,000.00
Standard Deduction- $16,100.00
Taxable Income$58,900.00
10% on $0.00 – $12,400.00$1,240.00
12% on $12,400.00 – $50,400.00$4,560.00
22% on $50,400.00 – $105,700.00$1,870.00
Federal Income Tax (before credits)$7,670.00
Federal Income Tax (after credits)$7,670.00
Social Security (6.2%)$4,650.00
Medicare (1.45%)$1,087.50
Total FICA$5,737.50
Total Tax$13,407.50
After-Tax Annual Income$61,592.50
Monthly Take-Home$5,132.71

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

Indiana Income Tax Overview

Indiana taxes personal income at a single flat rate of 2.95%. There are no graduated brackets, so a teacher, a welder, and a surgeon all pay the same percentage on their Indiana taxable income. The tax is administered by the Indiana Department of Revenue and reported each spring on Form IT-40, with the state generally starting from your federal adjusted gross income and then applying Indiana-specific additions, subtractions, and exemptions.

This flat state tax stacks on top of federal income tax rather than replacing any of it. You still owe the IRS under its tiered brackets, and Indiana's 2.95% is layered on as a separate calculation. Residents owe it on essentially all income, while part-year residents and nonresidents who earn money in Indiana owe it on the Indiana-source portion. Many counties also impose a local income tax that is filed together with the state return, so the rate hitting an Indiana resident's income is typically the 2.95% state figure plus a county add-on.

Indiana Income Tax Rate

0.0295%

Flat rate — same for all income levels

Indiana Tax Snapshot

Sales Tax 0.07%
Avg. Property Tax 0.0081%
Minimum Wage $7.25/hr

Official Sources:

Indiana Income Tax FAQ

Who has to pay Indiana state income tax?
Indiana residents owe the 2.95% tax on their full taxable income, regardless of where in the country it was earned. Nonresidents and part-year residents owe it on income sourced to Indiana, such as wages from an Indiana job or profit from an Indiana business. The Indiana Department of Revenue handles filing through the IT-40 and its nonresident variant, the IT-40PNR.
How does the 2.95% flat tax interact with my federal taxes?
They are entirely separate systems. The IRS applies its own graduated brackets to your federal taxable income, and Indiana then applies its flat 2.95% to your Indiana taxable income, which usually begins from your federal adjusted gross income. One does not reduce the other, although state income tax paid can be deductible on a federal return if you itemize.
Does Indiana use the same brackets as the federal government?
No. The federal system has multiple brackets that rise with income, but Indiana has just one flat rate of 2.95% that every taxpayer pays on their state taxable income. Because there are no brackets, Indiana does not have a marginal-rate jump, and the state rate you owe does not change as your earnings grow.
What are county income taxes and how do they relate to the state rate?
Most Indiana counties levy their own local income tax on top of the 2.95% state rate, and the county rate is based on where you resided on the year's determination date. You report and pay it on the same IT-40 return rather than filing separately. The combined burden on an Indiana resident is therefore the flat state rate plus whatever the home county charges.