Indiana State Tax Calculator 2026
Estimate your Indiana state income tax and take-home pay for tax year 2026.
Last updated: November 2025 · Source
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Indiana 2026 tax overview
Flat 2.95% for 2026 (statutory drop from 3.00% in 2025); reaches 2.90% in 2027. All 92 counties add local income tax.
Breakdown
Indiana income tax brackets, 2026
Indiana charges one rate on all taxable income. Figures are for single filers unless the state uses one schedule for all statuses.
| Taxable income | Rate | Tax on this bracket |
|---|---|---|
| Over $0 | 2.95% | 2.95% of everything above $0 |
Brackets apply to income after the Indiana standard deduction of $0 single and $0 married filing jointly, which is separate from the federal standard deduction.
What this calculator does not include
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 and it is not modelled here, so your real Indiana tax is higher than the figure above.
Frequently Asked Questions
What are the 2026 Indiana income tax rates?
Indiana charges a flat 2.95% on taxable income for 2026. Flat 2.95% for 2026 (statutory drop from 3.00% in 2025); reaches 2.90% in 2027. All 92 counties add local income tax.
At what income does the top Indiana tax rate start?
Indiana has a single rate, so it applies from the first dollar of taxable income above the standard deduction. There is no higher bracket to reach.
What is the 2026 Indiana standard deduction?
Indiana allows a state standard deduction of $0 for single filers and $0 for married filing jointly in 2026. This is separate from the federal standard deduction, which is $16,100 and $32,200 respectively.
Are there local income taxes in Indiana?
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 and it is not modelled here, so your real Indiana tax is higher than the figure above.
Does Indiana have tax reciprocity with neighbouring states?
Yes. Indiana has reciprocal agreements with Kentucky, Michigan, Ohio, Pennsylvania, Wisconsin. If you live in one of those states and work in Indiana, you file and pay only where you live, and you give your employer the relevant non-residence certificate so Indiana tax is not withheld. Without that form the tax is withheld anyway and you have to file a Indiana return to get it back.
Does Indiana tax Social Security and retirement income?
Indiana does not tax Social Security. Pensions and IRA withdrawals are taxable at the state and county rates.
What surprises people most about Indiana income tax?
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.