Indiana income tax rates for 2026
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.
| Rate | Taxable income |
|---|---|
| 2.95% | All taxable income |
Deductions, exemptions and credits
Before the rates apply, Indiana allows a personal exemption of $1,000 (single) or $2,000 (joint). The calculator uses these for the filing status you choose; dependent exemptions and credits, which lower the tax further for families, are not included.
Worked example: $75,000 in Indiana
Single filer with $75,000 of income before state deductions.
Taxable income = $75,000 − $1,000 (personal exemption) = $74,000.00
Brackets: 2.95% × $74,000.00 = $2,183.00
Indiana income tax = $2,183.00 — an effective rate of 2.91% and a marginal rate of 2.95%.
Indiana income tax at common incomes
| Income | Single | Effective | Married jointly | Effective |
|---|---|---|---|---|
| $30,000 | $856 | 2.85% | $826 | 2.75% |
| $50,000 | $1,446 | 2.89% | $1,416 | 2.83% |
| $75,000 | $2,183 | 2.91% | $2,154 | 2.87% |
| $100,000 | $2,921 | 2.92% | $2,891 | 2.89% |
| $150,000 | $4,396 | 2.93% | $4,366 | 2.91% |
| $250,000 | $7,346 | 2.94% | $7,316 | 2.93% |
Income before state deductions; standard deduction and personal exemptions for the filer (and spouse) only; no dependents, itemized deductions or local taxes.
Indiana compared with nearby states
At $75,000 (single), Indiana ranks 38 of 51 for state income tax, where 1 is the highest.
| State | Tax on $75,000 | Effective rate | Top rate |
|---|---|---|---|
| Indiana | $2,183 | 2.91% | 2.95% |
| Illinois | $3,568 | 4.76% | 4.95% |
| Michigan | $2,937 | 3.92% | 4.25% |
| Ohio | $1,629 | 2.17% | 2.75% |
| Kentucky | $2,507 | 3.34% | 3.5% |
More about taxes in Indiana
- Indiana's state rate dropped to 2.95% for 2026, down from 3% in 2025.
Frequently asked questions
What is the Indiana income tax rate for 2026?
A flat 2.95% state rate (down from 3% in 2025), plus a county income tax in every county. A single filer with $75,000 of income pays an effective 2.91% after deductions.
How much Indiana income tax do I pay on $75,000?
About $2,183 for a single filer — 2.91% of income — after $1,000 of personal exemption. A married couple with $150,000 owes about $4,366.
What deductions does Indiana allow?
Indiana allows a personal exemption of $1,000 (single) or $2,000 (joint). Dependent exemptions or credits, where the state offers them, lower the tax further.
Is Indiana's income tax higher than its neighbors'?
At $75,000 (single), Indiana ranks 38 of 51 for state income tax, where 1 is the highest. Among nearby states, Ohio is lowest at $1,629 and Illinois is highest at $3,568.
Estimates only — not tax advice. Indiana figures: Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 (as of Jan. 1, 2026). Checked October 2026. Your return may include income, deductions and credits this estimate leaves out.