Indiana Paycheck Calculator 2026

How this calculator works

Indiana withholds a flat percentage and has no brackets. The Department of Revenue’s withholding notice tells the employer to take your wages for the year, subtract $1,000 for every exemption claimed on Form WH-4, the state’s withholding certificate, and apply 2.95% to what is left. It does not use the federal standard deduction. The same remainder is also taxed at your county’s rate, which the notice lists for all 92 counties, from 0.5% to 3%. Indiana therefore has two income tax lines on a pay stub, and the second one depends on where you lived on January 1.

The calculator applies five deductions, in this order:

• Federal income tax. Your gross pay minus the federal standard deduction for your filing status, run through the 2026 federal brackets.
• Social Security at 6.2% of gross wages, up to the 2026 wage base of $184,500.
• Medicare at 1.45% of all wages, with no cap, plus the 0.9% Additional Medicare Tax on wages above $200,000.
• Indiana income tax: your wages after any 401(k) contribution, minus $1,000 for a single filer or head of household (one exemption) or $2,000 for a married filer (two), times 2.95%.
• County income tax: the same wages after exemptions, times the rate for the county you pick. We show it as its own line, labeled with the county and the rate.

Rates come from the agencies that set them: the IRS for the federal brackets, the standard deduction and FICA, cross-checked against the Social Security Administration for the wage base; and, for Indiana, the Department of Revenue’s Departmental Notice #1, effective October 1, 2026, with its county rate table; Form WH-4; its bulletin on nonresident employees; and the Department of Workforce Development. The state’s forms site refuses automated requests, so we read Form WH-4 from a dated snapshot in the Internet Archive; the snapshot and its date are linked in the sources below. Our full sourcing is on the methodology page.

Which county we start with, and why it matters. There is no single Indiana rate, so we have to assume a county until you pick yours. We start with Marion County, which includes Indianapolis, at 2.02%. A different county changes your take-home pay: on $75,000, a single filer keeps $59,040 in Porter County and $57,190 in Randolph County, a gap of $1,850.00 a year. Unless we say otherwise, the figures on this page, including the headline figure at the top, use Marion County.

Withholding is an estimate, not your final bill. The figure here is what an employer takes from each check using the department’s method. Your Indiana income tax itself is figured on your return, so what you owe or get back when you file can differ.

What the calculator deliberately leaves out: a different number of exemptions than the one it assumes, dependents, age 65 or older, blindness, adopted children, an extra amount withheld per paycheck, multiple jobs, bonuses and other one-time payments, the reciprocity exemption for residents of other states, the rules for nonresidents who work in Indiana 30 days or less, and health insurance premiums and other employer benefit deductions.

Indiana county income tax rates and what they cost on $75,000

These are the rates in the Department of Revenue’s Departmental Notice #1, effective October 1, 2026, for withholding periods beginning on or after that date. They run from 0.5% in Porter County to 3% in Randolph County. The third column is the county tax on $75,000 for a single filer with one exemption, which is $74,000 of taxable wages times the county rate; the fourth is what that filer keeps after every deduction on this page. The state tax is the same $2,183.00 in every county.

What Form WH-4 subtracts from your wages

Indiana has no standard deduction in its withholding method. The only subtractions are the exemptions you claim on Form WH-4, each worth a fixed dollar amount per year. For a single filer with one exemption on $75,000, that is $75,000 − $1,000 = $74,000, which is then taxed at 2.95% for the state, $2,183.00, and 2.02% for Marion County, $1,494.80.

Indiana hourly paycheck: what your rate is worth after tax

Why we ask for your hours instead of assuming 2,080

Many hourly calculators multiply your rate by 2,080 and call it a year. That is 40 hours a week for 52 weeks, which describes a full-time schedule, not every hourly job. If you work 32 hours a week, or 45 with overtime, the assumed figure is wrong before any tax is applied. The calculator above asks for your hours and uses them.

What is $20 an hour after taxes in Indiana?

At 40 hours a week, $20 an hour is $41,600 a year gross. After federal tax, Social Security, Medicare, Indiana withholding and Marion County withholding, that leaves about $33,588 a year, or $2,798.98 a month. Your real hourly rate — what an hour of work actually puts in your bank account — is $16.15. Indiana’s share is $1,197.70 of state income tax withholding plus $820.12 of county income tax for the year.

What are $25 and $30 an hour after taxes in Indiana?

$25 an hour is $52,000 gross and about $41,427 after tax, a real rate of $19.92. $30 an hour is $62,400 gross and about $49,267 after tax, a real rate of $23.69. State and county income tax together are $2,534.70 a year at $25 an hour, and $3,051.58 at $30.

Overtime and bonuses

The calculator multiplies your rate by the hours you enter and adds no overtime premium, and it does not model bonuses. The department’s notice says that for one-time or non-periodic payments, such as a bonus check, withholding is computed without exemptions, so a bonus is withheld on its full amount. If you work variable hours, enter the average number of hours you expect to work each week.

Indiana take-home pay by hourly rate

Single filer with one exemption in Marion County, 40 hours a week (2,080 hours a year), 2026 rates.

What this calculator does not cover

This tool models federal income tax, Social Security, Medicare and the payroll programs your state actually runs — nothing more. It deliberately leaves out:

• Itemized deductions and federal tax credits — the Child Tax Credit, the Earned Income Tax Credit, education credits. The engine always applies the standard deduction; there is no itemizing path.
• A second job, self-employment income or 1099 pay. Every dollar you enter is treated as one employer’s W-2 wages, taxed at the employee share of Social Security and Medicare — not the self-employment tax a 1099 worker actually owes.
• Pre-tax benefits other than the 401(k) field — health insurance premiums, an HSA or FSA, commuter benefits. The only amount taken out before tax is the percentage you enter for a 401(k).
• Local taxes other than Indiana county income tax — any city income tax or school-district tax that may apply to you. This calculator does add one local line for Indiana, the county income tax, at the rate for the county you choose above. The only other local line on this site is on the Maryland calculator. Our methodology page names the local taxes it leaves out.
• Overtime premiums. An hourly rate is multiplied by the hours you enter; it does not add a time-and-a-half rate for hours worked past 40 in a week.
• Wage garnishments or court-ordered deductions — child support, a wage levy. Your result assumes none exist.
• The Additional Medicare Tax, at the single-filer threshold. The 0.9% surtax above $200,000 is applied at that one figure for every filing status, the way an employer actually withholds it — not the higher threshold a married couple filing jointly may end up owing at tax return time.
• Married filing separately, or a qualifying surviving spouse. The calculator only offers single, married filing jointly, and head of household.

None of these are in the estimate. Some of them change what you owe or get back when you file, and a calculator cannot ask for everything they depend on. See why your pay stub will differ for the details.

Key facts that affect your take-home pay in Indiana

One flat state rate, no brackets

Indiana’s withholding notice gives one rate for individuals in 2026, 2.95%, and it does not change with your pay or filing status. There is no standard deduction either: the federal $16,100 plays no part. The only subtraction is $1,000 for each exemption on your Form WH-4. A single filer on $75,000 has $74,000 taxed, and the state tax is $2,183.00. On $250,000 the same rate applies to $249,000, for $7,345.50.

Your county adds a second income tax

Employers withhold county tax on the same wages, using the rate for the employee’s county. There are 92 counties, and the rates in the October 1, 2026 notice run from 0.5% (Porter) to 3% (Randolph). Combined with the state’s 2.95%, withholding runs from 3.45% to 5.95% of wages after exemptions. In Marion County it is 4.97%, so on $75,000 county withholding is $1,494.80, about two-thirds of the state tax of $2,183.00.

The county is the one from January 1

The notice says both the county of residence and the county of principal business or employment are determined on January 1 of the year in which the taxable year begins. If you lived in an Indiana county that day, your county of residence sets the rate. If you lived out of state that day but worked in an Indiana county, the work county sets it. Moving after January 1 does not change your county for that year, and Form WH-4 has a box to ask for a change effective next year.

One county’s rate has already moved this year

The Department of Revenue published Departmental Notice #1 for 2026 on January 1 and issued an updated version effective October 1, 2026. The new one marks with an asterisk each county whose rate changed in between, and Boone County, now 1.71%, is the only one marked. The rates on this page are the October 1 rates.

Reciprocity covers the state tax, not the county tax

The Department of Revenue says Indiana has reciprocity agreements with Kentucky, Michigan, Ohio, Pennsylvania and Wisconsin: Indiana does not tax the wages of those states’ residents who work in Indiana, and an employer is not required to withhold Indiana income tax from a qualified nonresident who gives it a completed Form WH-47. The same bulletin says reciprocity does not cover local income taxes: those residents are subject to county tax in the same way as residents of other states. This calculator assumes an Indiana resident and does not model the exemption. Five of the five states have calculators here.

Exemptions, not allowances

Form WH-4 asks for exemptions, and each one is worth $1,000 a year. You get one for yourself, and one for a spouse who does not claim one. A married filer therefore subtracts $2,000 instead of $1,000, and on $75,000 has $2,153.50 of state tax and $1,474.60 of county tax withheld, against $2,183.00 and $1,494.80 for a single filer. Indiana has no head of household category on this form, so we give a head of household the single filer’s one exemption: $2,183.00 of state tax.

No unemployment or leave premium comes out of your pay

The Department of Workforce Development says employees do not pay into unemployment insurance and that no money is deducted from employee paychecks for it in Indiana. We found no Indiana paid leave or disability premium in the documents we read, so the calculator takes no state payroll program deduction.

Your 401(k) lowers your Indiana wages

The withholding notice works from “gross income” and does not discuss employee 401(k) contributions. The federal tax on this page already treats a traditional 401(k) contribution as reducing taxable pay, so we apply the same treatment to the state and county tax; it is a modeling choice, not a rule the notice spells out. On $75,000 with 6% going in, Indiana state and county withholding together fall by $223.65 a year. Enter 0 if your contribution is a Roth.

Social Security stops, Medicare does not

Social Security is withheld at 6.2% until your wages reach $184,500 in 2026, then stops for the rest of the year. Medicare has no ceiling at all: 1.45% on every dollar, plus an extra 0.9% on wages above $200,000. On $250,000, Social Security and Medicare take $15,514.00 in all.

Common mistakes

Leaving out the county tax

A calculator that applies only the state’s 2.95% overstates take-home pay for almost every Indiana worker. On $75,000 in Marion County the county line is $1,494.80; in Randolph County it is $2,220.00.

Using the county you live in today

The rate that applies is the one for your county on January 1. If you moved in March, your county for withholding stays the same until the next calendar year.

Subtracting the federal standard deduction

The withholding method does not use it. It subtracts only the $1,000 exemptions on Form WH-4, so a single filer on $75,000 has $74,000 taxed by Indiana, not the $58,900 of federal taxable income.

Expecting exemptions on a bonus

The notice says a one-time payment such as a bonus check is withheld without exemptions. A $5,000 bonus has $147.50 of state tax and $101.00 of Marion County tax withheld on the whole amount, $248.50 together.

Forgetting that reciprocity stops at the county line

A Michigan, Ohio, Kentucky, Pennsylvania or Wisconsin resident working in Indiana can be exempt from Indiana state tax with a Form WH-47 and still owe county tax, based on the Indiana county where they work on January 1.

Expecting the calculator to match the pay stub to the dollar

It will not, and no calculator can. Health insurance premiums and other pre-tax benefit deductions come out before tax and are not modeled here, and the exemptions on your Form WH-4 may differ from the ones we assume. Read why your pay stub will differ for the rest.

Example calculation

Amounts are shown to the cent, so adding the rounded lines can differ from the total by a cent.

A single filer earning $75,000 in Marion County, Indiana, in 2026, claiming one exemption, with no retirement contribution:

• Federal taxable income: $75,000 − federal standard deduction of $16,100 = $58,900
• Federal income tax: $7,670.00
• Social Security: $75,000 × 6.2% = $4,650.00
• Medicare: $75,000 × 1.45% = $1,087.50
• Indiana exemption: 1 × $1,000 = $1,000
• Wages after the exemption: $75,000 − $1,000 = $74,000
• Indiana income tax: $74,000 × 2.95% = $2,183.00 a year, which is $181.92 on a monthly paycheck or $83.96 on a biweekly one
• Marion County income tax: $74,000 × 2.02% = $1,494.80 a year, which is $124.57 on a monthly paycheck
• Total withheld: $17,085.30
• Take-home pay: $57,914.70 a year, or $4,826.22 a month
• Effective tax rate: 22.8%

Frequently asked questions

Compare with other states

The same $75,000 salary, single filer, 2026 rates. Indiana borders Illinois, Kentucky, Michigan and Ohio, and we publish all four. Indiana is shown with one exemption and the Marion County income tax included in its state-level deductions.

An Illinois worker keeps $110.09 more than an Indiana worker in Marion County on the same salary, a Kentucky worker keeps $1,170.40 more, a Michigan worker keeps $741.05 more, and an Ohio worker keeps $2,058.80 more. Ohio’s figure leaves out city income tax, and Kentucky’s leaves out local occupational license taxes; neither calculator models them.

Sources

Every figure on this page is read from an official document and dated, not taken from another calculator — the federal ones from the IRS and the Social Security Administration, the Indiana ones from the state’s own documents below. Each one carries the date we last checked that it still answers. If one of our numbers disagrees with one of theirs, they are right and we have a defect to fix — tell us.

The documents these figures are read from

• Indiana Department of Revenue — Departmental Notice #1, How to Compute Withholding for State and County Income Tax (PDF) — the 2.95% state rate for 2026, the $1,000 deduction per exemption claimed on Form WH-4, the rule that county tax is withheld on the same wages at the rate of the employee’s county on January 1, and the rate for each of the 92 counties.
• Indiana Department of Revenue — Form WH-4, Employee’s Withholding Exemption and County Status Certificate (Internet Archive snapshot of June 12, 2025) — the exemptions on lines 1 and 2, one for yourself and one for a spouse who does not claim it, and the county of residence and county of principal employment as of January 1; archived copy, because forms.in.gov refuses automated requests.
• Indiana Department of Revenue — Income Tax Information Bulletin #33, Withholding Requirements for Nonresident Employees (PDF) — the reciprocity agreements with Kentucky, Michigan, Ohio, Pennsylvania and Wisconsin, and the rule that county income tax is still withheld.
• Indiana Department of Workforce Development — Unemployment Insurance employer guide, Hired an Employee — the statement that employees do not pay into unemployment insurance and that no money is deducted from employee paychecks for it.
• IRS — 2026 inflation adjustments (Rev. Proc. 2025-32) — the federal brackets and the $16,100 standard deduction.
• IRS — Topic no. 751, Social Security and Medicare withholding rates — the 6.2% and 1.45% rates and the 0.9% Additional Medicare Tax.
• SSA — Contribution and benefit base — the $184,500 Social Security wage base.

All links checked October 6, 2026.

Related reading

• Paycheck calculators by state — the full index, including which states have no income tax at all.
• Illinois paycheck calculator — the neighbor to the west, with a flat 4.95% after a personal exemption.
• Kentucky paycheck calculator — the neighbor to the south, a flat 3.5% after a $3,360 deduction and a reciprocity agreement with Indiana.
• Michigan paycheck calculator — the neighbor to the north, a flat rate with a per-person exemption and an income tax reciprocity agreement with Indiana.
• Ohio paycheck calculator — the neighbor to the east, with nothing withheld on the first $26,050 of taxable income and a reciprocity agreement with Indiana.
• Methodology — the exact formula, every 2026 figure with its official source, and what these calculators deliberately do not model.
• Why your pay stub will differ — pre-tax deductions, credits and W-4 settings, and how much difference is normal.