Indiana paycheck taxes at a glance (2026)
| State income tax | A flat 2.95% state rate (down from 3% in 2025), plus a county income tax in every county |
|---|---|
| Deductions & credits | A personal exemption of $1,000 (single) or $2,000 (joint) |
| State payroll taxes | None paid by employees |
| Local income taxes | Every Indiana county levies a local income tax on residents, based on the county where you lived on January 1; rates are set by each county and published by the Department of Revenue in Departmental Notice 1. |
| Federal (every state) | 2026 brackets from 10% to 37%; Social Security 6.2% up to $184,500; Medicare 1.45%, plus 0.9% on wages over $200,000 |
| Sales tax | 7.00% average combined rate — Indiana sales tax calculator |
How Indiana taxes your paycheck
A flat 2.95% state rate (down from 3% in 2025), plus a county income tax in every county. The calculation starts from federal adjusted gross income with Indiana modifications, and filers get a personal exemption of $1,000 (single) or $2,000 (joint). Employers withhold it each payday using the state's withholding formula, so a pay stub can differ a little from the annual tax estimated here; any difference settles when you file your Indiana return.
Worked example: $65,000 salary in Indiana
A single filer paid every two weeks (26 paychecks), with no 401(k) or health deductions — the calculator's starting values:
| Line | Per paycheck | Per year |
|---|---|---|
| Gross pay | $2,500.00 | $65,000.00 |
| Federal income tax | −$216.15 | −$5,620.00 |
| Social Security (6.2%) | −$155.00 | −$4,030.00 |
| Medicare (1.45%) | −$36.25 | −$942.50 |
| Indiana income tax | −$72.62 | −$1,888.00 |
| Take-home pay | $2,019.98 | $52,519.50 |
Federal: $65,000 − $16,100 standard deduction = $48,900 taxable, which the 2026 single brackets tax at $5,620.00.
Indiana: $65,000 − $1,000 personal exemption = $64,000 taxable; the brackets give $1,888.00 (2.9% of pay).
All taxes together take 19.2% of gross pay, leaving $52,519.50.
Take-home pay at other salaries in Indiana
| Salary | Single, per year | Single, biweekly | IN income tax | Total tax rate | Married jointly, per year |
|---|---|---|---|---|---|
| $40,000 | $33,170 | $1,275.75 | $1,151 | 17.1% | $35,039 |
| $50,000 | $40,910 | $1,573.44 | $1,446 | 18.2% | $42,979 |
| $65,000 | $52,520 | $2,019.98 | $1,888 | 19.2% | $54,729 |
| $80,000 | $62,780 | $2,414.60 | $2,331 | 21.5% | $66,339 |
| $100,000 | $76,260 | $2,933.06 | $2,921 | 23.7% | $81,819 |
| $150,000 | $109,396 | $4,207.52 | $4,396 | 27.1% | $118,819 |
Standard deduction only, with no pre-tax deductions or dependents and no local tax. The total tax rate (single) includes federal income tax, Social Security, Medicare, state income tax and state payroll contributions.
Indiana compared with nearby states
On a $65,000 salary (single, biweekly), Indiana ranks 17 of 51 for take-home pay, where 1 keeps the most. Ohio would leave you more each year; Illinois, Michigan and Kentucky would leave less.
Local income taxes are left out, except Maryland's county tax, which every resident pays (3.20% used here).
| State | State & county income tax | State payroll taxes | Take-home per year | vs. Indiana |
|---|---|---|---|---|
| Indiana | $1,888 | $0 | $52,520 | — |
| Illinois | $3,073 | $0 | $51,335 | −$1,185 |
| Michigan | $2,512 | $0 | $51,896 | −$624 |
| Ohio | $1,354 | $0 | $53,054 | +$534 |
| Kentucky | $2,157 | $0 | $52,250 | −$269 |
Good to know about Indiana paychecks
- Indiana's state rate dropped to 2.95% for 2026, down from 3% in 2025.
Frequently asked questions
How much is $65,000 a year after taxes in Indiana?
About $52,520 a year, or $2,019.98 per biweekly paycheck, for a single filer with no pre-tax deductions in 2026. That is after $5,620 of federal income tax, $4,973 of Social Security and Medicare and $1,888 of Indiana income tax. A married couple filing jointly on the same salary keeps about $54,729.
Does Indiana have a state income tax?
Yes. A flat 2.95% state rate (down from 3% in 2025), plus a county income tax in every county. On a $65,000 salary a single filer owes about $1,888 a year, 2.9% of pay.
What else is taken out of a paycheck in Indiana?
Nothing else statewide: Indiana has no employee-paid disability, paid-leave or unemployment payroll tax, so the other deductions are federal taxes and whatever you elect, such as retirement savings or health premiums.
Do cities or counties in Indiana tax wages?
Every Indiana county levies a local income tax on residents, based on the county where you lived on January 1; rates are set by each county and published by the Department of Revenue in Departmental Notice 1.
Is take-home pay higher in Indiana or nearby states?
On a $65,000 single salary, Indiana ranks 17 of 51 for take-home pay at $52,520. Ohio ($53,054) leaves more, while Illinois ($51,335), Michigan ($51,896) and Kentucky ($52,250) leave less.
Estimates only — not tax advice. Actual withholding depends on your federal Form W-4, any Indiana withholding certificate, pre-tax benefits and year-to-date wages. Indiana income tax figures: Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 (as of Jan. 1, 2026). Payroll contributions: sources listed above. Checked October 2026.