Indianapolis rules
How Indianapolis paychecks are taxed in 2026
Indianapolis pay is taxed at two local levels on top of federal. Indiana applies a flat 3.0% state income tax on adjusted gross income, and Marion County — where Indianapolis sits — adds a 2.02% county income tax. Indiana is one of the few states where almost every county levies its own income tax, so your county of residence matters.
How the county tax works
Indiana's county income taxes are set by each county and apply to the same adjusted gross income as the state tax. Marion County's 2.02% is applied on top of the flat 3.0% state rate. Both are flat — there are no graduated brackets — so a raise is taxed at the same combined local rate as your base pay. The calculator above models both as a single combined state-and-local line.
Where an Indianapolis paycheck goes
On a typical salary, expect federal income tax, 6.2% Social Security, 1.45% Medicare and roughly 5% combined Indiana-plus-Marion-County tax. The result line shows the combined state-and-county portion so you can see the full local bite.
Compare Indianapolis with other cities
See how your salary fares in no-tax Nashville, or in Columbus and Detroit (which also stack local taxes), and check the statewide Indiana calculator.
Questions
Indianapolis Salary Calculator FAQ
Does Indianapolis have a local income tax?
Yes. Indianapolis is in Marion County, which levies a 2.02% county income tax on top of Indiana's flat 3.0% state income tax. Indiana is unusual in that nearly every county imposes its own income tax, so an Indianapolis worker pays about 5% in combined state-and-county income tax.
What is the Indiana income tax rate in Indianapolis?
Indiana applies a flat 3.0% state income tax on adjusted gross income statewide. In Indianapolis, the Marion County local income tax of 2.02% is added on top, for a combined state-and-county rate of about 5.02%, in addition to federal tax and FICA.
What is the take-home pay on $60,000 in Indianapolis?
A single filer earning $60,000 in Indianapolis takes home roughly $44,000 to $45,000 a year after federal income tax, FICA, the 3.0% Indiana state tax and the 2.02% Marion County tax. Use the calculator above for your exact figure.
How is the Marion County income tax collected?
The Marion County income tax is withheld from your paycheck alongside Indiana's state tax, based on your county of residence as of the start of the year. Both are flat rates applied to your Indiana adjusted gross income, so they are deducted automatically by your employer's payroll.
- Sources: Indiana Department of Revenue (flat 3.0% state tax; Marion County local income tax 2.02%) · IRS Rev. Proc. 2025-32 · SSA 2026 wage base.
- 🔄 Last updated June 9, 2026 · Tax year 2026
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