Indiana rules
How Indiana taxes your paycheck in 2026
Indiana applies a single 3.0% flat income tax to adjusted gross income — one of the lowest state rates in the country and on a path to fall further toward 2.9%. The Indiana Department of Revenue keeps the state portion simple, though every county adds its own local income tax on top.
The 3.0% flat rate
Indiana taxes your state adjusted gross income at a flat 3.0% for 2026. Unlike many states, Indiana does not offer a large standard deduction — instead it uses modest personal exemptions. This calculator applies the state flat rate to your wages.
| Gross salary | IN state tax (≈3.0%) | Est. take-home |
|---|---|---|
| $45,000 | ~$1,350 | ~$37,300 |
| $58,000 | ~$1,740 | ~$46,300 |
| $90,000 | ~$2,700 | ~$69,100 |
| $130,000 | ~$3,900 | ~$96,500 |
State portion only. Single filer, 2026 federal brackets and FICA.
Comparing Indiana to other states
Indiana's 3.0% state rate is among the lowest, just above Arizona and Pennsylvania. Once county taxes are added, the effective rate climbs closer to flat-tax Michigan or Ohio.
Questions
Indiana salary calculator FAQ
What is the Indiana income tax rate for 2026?
Indiana has a flat individual income tax of 3.0% on adjusted gross income for 2026, administered by the Indiana Department of Revenue, with the rate scheduled to decline toward 2.9%. Counties levy a separate local income tax.
How much is taken out of a paycheck in Indiana?
An Indiana paycheck is reduced by federal income tax, 6.2% Social Security, 1.45% Medicare and the flat 3.0% state income tax, plus your county's local income tax. On a $58,000 single salary, the state and federal deductions total roughly 20% to 22%.
Do Indiana counties charge income tax?
Yes. Every Indiana county levies a local income tax, typically between 1% and 3%, withheld based on your county of residence. This is in addition to the 3.0% state rate shown in the calculator above.
What is the take-home pay on $58,000 in Indiana?
A single filer earning $58,000 in Indiana takes home roughly $46,300 a year after federal tax, FICA and the 3.0% state income tax, before any county income tax. Use the calculator for your exact figure.
- Sources: Indiana Department of Revenue (3.0% flat rate; county taxes) · IRS Rev. Proc. 2025-32 · SSA 2026 wage base.
- 🔄 Last updated June 9, 2026 · Tax year 2026
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