Indiana Paycheck Calculator
Estimate your take-home pay in Indiana, where a flat state income tax rate is on a fixed schedule to keep dropping through 2027, and every one of the state's 92 counties adds its own local income tax on top.
This calculator provides estimates for informational purposes only. Actual paycheck amounts may vary based on your employer, benefits, local taxes, filing status, and tax elections.
Your estimate will appear here
Enter your pay details and click calculate to see your estimated take-home pay, tax breakdown, and annual income.
A note on county income tax: Unlike Ohio, where local income tax depends on which specific city or town you're in, Indiana requires all 92 counties to charge one, so there's no way to avoid it by living somewhere without a local rate. County rates run from about 0.5% to nearly 3%, and Marion County (Indianapolis) sits on the higher end. This calculator's estimate covers only the flat state rate, so add your county's specific rate to get a more accurate figure for your actual paycheck.
Quick Answer
Indiana's flat state income tax rate is 3.05% for 2024, scheduled to step down toward 2.9% by 2027. This calculator estimates your take-home pay using that state rate, along with federal income tax, Social Security (6.2%), and Medicare (1.45%). It doesn't add county income tax, which every Indiana county charges on top of the state rate, so your real Indiana paycheck will be a bit lower than this estimate.
How It Works: Formula & Variables
Net Pay = Gross Pay − Federal Tax − State Tax (≈3.05% flat) − Social Security − Medicare − Other Deductions
- Gross Pay
- Your total earnings before any deductions, hourly rate times hours, or annual salary divided by pay periods.
- Federal Tax
- Calculated using progressive tax brackets based on your filing status and taxable income.
- State Tax
- Estimated at an approximate 3.05% flat rate, Indiana's statutory state rate, scheduled to fall further through 2027. Doesn't include county income tax.
- Social Security
- 6.2% of gross pay, up to the annual wage base limit.
- Medicare
- 1.45% of gross pay, with no wage limit (plus 0.9% surtax above certain thresholds).
Worked Examples
Example 1: Hourly worker in Fort Wayne
Drew works 40 hours a week at $20 an hour. Gross weekly pay is $800. After federal income tax (around $76), Indiana state tax (≈3.05%, or $24.40), Social Security (6.2%, or $49.60), and Medicare (1.45%, or $11.60), estimated take-home pay lands at about $638.40 a week, roughly 80% of gross pay before adding Allen County's local income tax.
Example 2: Salaried employee in Indianapolis
Casey earns $63,000 a year, paid biweekly ($2,423.08 gross per paycheck), filing as Single, and lives in Marion County. After federal tax, the 3.05% Indiana flat state tax, Social Security, and Medicare, this calculator estimates take-home pay at roughly $1,860 per paycheck. Marion County's local income tax would subtract further from that, since it isn't included here.
Example 3: Married couple in a smaller Indiana county
Jamie and Robin file Married Filing Jointly with a combined salary of $88,000 a year, paid biweekly ($3,384.62 gross per paycheck), living in a county with a lower local rate than Marion County. After federal tax, Indiana's flat state tax, Social Security, and Medicare, estimated take-home pay comes out to roughly $2,610 per paycheck, about 77% of gross pay, before their specific county tax is added on top.
Key Concepts
A rate cut on a fixed calendar: Indiana's schedule of reductions from 3.05% down toward 2.9% by 2027 is written into law with specific years attached, unlike Georgia's revenue-conditional cuts, which only happen if the state hits certain financial benchmarks first.
County tax applies no matter where you live: Every one of Indiana's 92 counties charges a local income tax, so unlike Ohio, where some areas skip municipal tax entirely, there's no way to live in Indiana without some county-level income tax applying.
Marion County sits toward the higher end: Indianapolis and the rest of Marion County carry one of the higher county rates in the state, pushing the combined state-plus-county rate there above what smaller, lower-tax counties charge.
A relatively low overall tax burden by national standards: Even with county tax added, Indiana's combined state-plus-local income tax rate tends to land below many bracket-based states, particularly for middle incomes.
Useful for comparing job offers: If you're weighing an Indianapolis offer against one in a lower-tax Indiana county or a neighboring state, run both through a paycheck calculator and factor in the specific county rate for an accurate comparison.
Common Mistakes
Forgetting county income tax entirely: Since every Indiana county charges one, skipping it in a take-home pay estimate leaves out a real and unavoidable part of the tax bill, not an optional local surcharge like in some other states.
Assuming every county charges the same rate: County rates range from about 0.5% to nearly 3%, so the same salary produces different take-home pay depending on which Indiana county you live in.
Comparing gross salaries across states: A $60,000 offer in Indiana and a $60,000 offer in Illinois don't translate to the same take-home pay. Always compare net pay, not gross.
Ignoring pre-tax deductions: 401(k) contributions and health insurance premiums lower your taxable income before both federal and state tax apply, so leaving them out understates your real take-home pay.
Frequently Asked Questions
Indiana charges a flat 3.05% state income tax for 2024, and this calculator uses that rate. The rate is on a scheduled step-down to 3% for 2025 and eventually to 2.9% by 2027, one of the few states with a fixed, calendar-based rate-cut plan rather than one tied to hitting revenue targets.
Yes, and it applies everywhere. All 92 Indiana counties levy their own county income tax alongside the state rate, with local rates ranging from about 0.5% up to nearly 3% depending on the county. Marion County, home to Indianapolis, charges one of the higher county rates in the state.
Marion County's local income tax, layered on top of Indiana's flat state rate, pushes the combined state-plus-county rate in Indianapolis to roughly 5% depending on the exact year and county rate. This calculator only applies the state portion, so an Indianapolis resident's real take-home pay will run a bit lower than the estimate shown.
Federal income tax, Indiana's flat state income tax, a county income tax that varies by where you live (all 92 counties have one), Social Security (6.2% up to the annual wage base), and Medicare (1.45%, plus 0.9% more for high earners).
Yes, on a fixed year-by-year schedule written into law, stepping down from 3.05% toward a target of 2.9% by 2027, regardless of state revenue performance. That's different from states like Georgia, where further cuts only happen if revenue and reserve targets are met first.
Yes, switch between the Hourly and Salary tabs and enter your wage or annual salary along with your pay frequency. The state is already set to Indiana.
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