Indiana Paycheck Calculator 2026
Every Indiana paycheck has two income tax lines: the 2.95% state rate and a county rate set by where you lived on 1 January, from about 0.5% to over 3%. Moving counties mid-year does not change the county rate until the next year.
Last updated: October 2026
Pay and filing
Annual gross: $65,000
Used to stop Social Security at the $184,500 wage base and to start the extra 0.9% Medicare above $200,000 on this paycheck.
Form W-4
Step 3: $2,200 per child and $500 per other dependent, a year.
For example education or child care credits you expect to claim.
Interest, dividends or other income with no withholding.
Deductions beyond the standard deduction, including deductible IRA contributions.
Retirement and benefits
$3,900 a year, capped at the $24,500 employee limit for 2026.
Traditional contributions lower federal and most state income tax now, but not Social Security or Medicare.
Through payroll, an HSA avoids income tax and FICA. California and New Jersey still tax it.
2026 limit $3,400.
2026 limit $7,500 per household ($3,750 married filing separately).
Paycheck breakdown (biweekly)
Annual summary
Indiana paycheck rules for 2026
| State income tax, 2026 | Flat 2.95% |
|---|---|
| Deductions before tax | personal exemption $1,000 per person |
| Withholding certificate | Form WH-4 |
| Bonus (supplemental) withholding | Indiana withholds the flat state rate plus your county rate on bonuses. |
| Mandatory payroll premiums | None for employees |
| Local income taxes | Every Indiana county levies its own income tax on top of the state rate, ranging from roughly 0.5% to over 3%. It is based on your county of residence on 1 January. Marion County (Indianapolis) is 2.02% and Hamilton County 1.1% for 2026. |
| Reciprocity agreements | Yes, with Kentucky, Michigan, Ohio, Pennsylvania and Wisconsin |
| Sales tax (for context) | 7.00% state, 7.00% average combined with local (rank 25 of 51) |
Worked example: $60,000 in Indiana
Single filer, paid every two weeks (26 paychecks), standard W-4, no 401(k) or other benefits.
| Gross pay | $2,307.69 |
| Federal income tax | -$193.08 |
| Social Security (6.2%) | -$143.08 |
| Medicare (1.45%) | -$33.46 |
| Indiana income tax | -$66.94 |
| Take-home pay | $1,871.13 |
Indiana take-home pay at different salaries
Single filer, paid every two weeks, standard W-4, no benefits, no local tax.
| Salary | Per paycheck | Per year | To Indiana |
|---|---|---|---|
| $40,000 | $1,275.75 | $33,170 | $1,151 |
| $60,000 | $1,871.13 | $48,650 | $1,741 |
| $100,000 | $2,933.06 | $76,260 | $2,921 |
| $150,000 | $4,207.52 | $109,396 | $4,396 |
Living and working in Indiana
Indiana's state sales tax is 7.00%; with local add-ons the average combined rate is 7.00%, ranked 25 of 51 as of July 2026.
The county tax is the part people forget. On a $75,000 salary in a 2% county it adds around $1,500 a year, roughly doubling the state-level bill.
In retirement: Indiana does not tax Social Security. Pensions and IRA withdrawals are taxable at the state and county rates.
Indiana paycheck questions
How much is take-home pay on $60,000 in Indiana?
A single filer paid $60,000 a year every two weeks, with no pre-tax benefits, takes home about $1,871.13 a paycheck in Indiana ($48,650 a year). Each $2,307.69 paycheck loses $193.08 to federal income tax, $176.54 to Social Security and Medicare, $66.94 to Indiana income tax. That is $1,741 a year less than the same salary in a state with no income tax or payroll premiums.
How much Indiana income tax comes out of each paycheck?
Flat 2.95% for 2026, falling to 2.9% in 2027. Every county adds its own income tax on top. On a $60,000 salary that works out to about $66.94 every two weeks, an effective 2.90% of gross pay.
What else does Indiana take out of a paycheck?
Apart from income tax, Indiana requires no other employee payroll deduction, so the remaining lines on your stub are federal income tax, Social Security, Medicare and any benefits you chose.
Are there local income taxes on Indiana paychecks?
Yes. Every Indiana county levies its own income tax on top of the state rate, ranging from roughly 0.5% to over 3%. It is based on your county of residence on 1 January. Marion County (Indianapolis) is 2.02% and Hamilton County 1.1% for 2026. Choose your city or county in the calculator, or enter its rate under “Other”.
I live in a neighboring state. Will Indiana tax my paycheck?
Not if you live in Kentucky, Michigan, Ohio, Pennsylvania and Wisconsin. Indiana has reciprocal agreements with those states, so you can give your employer the state's nonresidence form and have only your home state's tax withheld. Without the form, Indiana tax is withheld anyway and you must file a Indiana return to get it back.
How are bonuses withheld in Indiana?
Federally, a bonus paid separately is usually withheld at a flat 22% (37% on supplemental pay above $1 million in the year). For Indiana: Indiana withholds the flat state rate plus your county rate on bonuses.
Which form sets my Indiana withholding?
Indiana uses Form WH-4 alongside the federal Form W-4. If you do not file one, your employer uses the state's default setting, usually single with no allowances or adjustments. Update it after marriage, a new child or a second job.
More for Indiana
- Indiana income tax calculator for the full year
- Paycheck calculator for all states
- Bonus tax calculator