Salary & Taxes

Indiana Paycheck Calculator

From gross salary to the number that actually hits your bank account

Indiana levies a flat 3.00% state income tax on all taxable income for the 2025 tax year — one of the simpler systems in the country. Unlike most states, Indiana doesn't use progressive brackets, so whether you earn $30,000 or $300,000, the same 3% rate applies to your Indiana taxable income. This rate was reduced from 3.05% in 2024 and is part of a phased plan to reach 2.9% by 2027.

But Indiana's tax story doesn't end at the state level. All 92 Indiana counties impose their own local income taxes on top of the 3% state rate, ranging from roughly 0.50% to 2.95% depending on where you live. Marion County (Indianapolis) charges around 2.02%, while smaller rural counties may charge less. Your employer withholds county tax based on your county of residence.

Worked example on a $75,000 salary: Before any deductions, your Indiana state income tax is $75,000 × 3.00% = $2,250 per year. Adding a typical county tax of roughly 1.5% adds another ~$1,125. On top of that, federal income tax (about $8,500 for a single filer at this income using standard deductions) and FICA (Social Security + Medicare, roughly $5,738) bring total withholdings to approximately $17,600–$18,500 depending on your county and filing status. That leaves an estimated take-home pay of around $56,500–$57,400 per year, or about $4,700–$4,780 per month.

Pre-tax contributions to a 401(k), HSA, or FSA reduce your taxable income and improve take-home pay. This calculator provides estimates — consult a tax professional for precise figures.

Practical example — Indiana

On a $75,000 gross salary in Indiana, a single filer in Marion County (Indianapolis) can expect roughly $56,500–$57,500 in annual take-home pay after federal taxes, Indiana's 3% flat state income tax, Marion County's ~2% local tax, and FICA deductions.

Medium ⏱ 6 min Updated: 2026-06-18 ✍️ By Jeferson Bruno
📖 See also: Hourly vs Salary: How to Compare Job Offers

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❓ Frequently asked questions

Does Indiana have a state income tax?

Yes. Indiana has a flat state income tax of 3.00% for tax year 2025, applicable to all residents on their taxable income. This is a reduction from 3.05% in 2024, and the rate is scheduled to gradually decrease to 2.9% by 2027.

How much is taken out of a paycheck in Indiana?

For a typical Indiana employee, withholdings include: federal income tax (varies by bracket and filing status), Indiana flat state income tax at 3.00%, county income tax (0.50%–2.95% depending on your county of residence), Social Security at 6.2% up to the wage base, and Medicare at 1.45%. Combined, most middle-income earners see 25%–32% of gross pay withheld.

Does Indiana have local income taxes in addition to the state tax?

Yes. All 92 Indiana counties levy their own county income taxes, ranging from about 0.50% to 2.95%. This is separate from the state's 3% rate and is withheld based on your county of residence, not where you work.

Is Indiana a good state for take-home pay compared to others?

Indiana's flat 3% state rate is moderate — lower than high-tax states like California (up to 13.3%) or New York (up to 10.9%), but higher than the nine states with no income tax at all (Florida, Texas, Nevada, etc.). The county tax adds meaningful cost on top, making the true combined burden 3.5%–6% for most Hoosiers.

What is Indiana's standard deduction for state income tax in 2025?

Indiana allows a standard deduction of $3,500 for single filers and $7,000 for married filing jointly for state income tax purposes in 2025. This reduces the amount of income subject to Indiana's 3% flat rate, slightly lowering your state tax bill.