Indiana income tax at a glance
Indiana’s flat rate fell to 2.95% for 2026 and is scheduled to reach 2.9%. Each taxpayer gets a $1,000 exemption and each qualifying dependent child an extra $1,500. County income taxes add significantly to the total.
| Tax structure | Flat 2.95% |
| Figures for tax year | 2026 |
| Starting point | Federal AGI |
| Standard deduction (single / joint) | None |
| Tax on $75,000 (single) | $2,183 (2.91%) |
| Rank at $75,000 | 38th highest of 42 |
| Local income taxes | Yes — see below |
| State sales tax | 7% |
How Indiana calculates your income tax
Indiana starts from your federal adjusted gross income (AGI). There is no standard deduction in Indiana. You also get a personal exemption of $1,000 per taxpayer and a dependent exemption of $2,500 per dependent.
Taxable income × 2.95% = Indiana income tax
Indiana income tax rate (2026)
Indiana applies a single 2.95% rate to all taxable income for every filing status. There are no brackets to climb: each extra $1,000 of taxable income adds $30 of state tax.
Indiana standard deduction and exemptions
| Filing status | Standard deduction | Personal exemption | Per dependent |
|---|---|---|---|
| Single | $0 | $1,000 | $2,500 |
| Married filing jointly | $0 | $2,000 | $2,500 |
| Head of household | $0 | $1,000 | $2,500 |
Amounts before any income-based phase-outs.
Indiana income tax on $50,000, $75,000 and $100,000
Estimated 2026 tax for W-2 wages with the standard deduction, no children and no pre-tax deductions. Change any of these in the calculator above.
| Wages | Filing status | IN tax | Effective | Federal tax | FICA | Take-home | Monthly |
|---|---|---|---|---|---|---|---|
| $50,000 | Single | $1,446 | 2.89% | $3,820 | $3,825 | $40,910 | $3,409 |
| $50,000 | Married jointly | $1,416 | 2.83% | $1,780 | $3,825 | $42,979 | $3,582 |
| $75,000 | Single | $2,183 | 2.91% | $7,670 | $5,738 | $59,410 | $4,951 |
| $75,000 | Married jointly | $2,154 | 2.87% | $4,640 | $5,738 | $62,469 | $5,206 |
| $100,000 | Single | $2,921 | 2.92% | $13,170 | $7,650 | $76,260 | $6,355 |
| $100,000 | Married jointly | $2,891 | 2.89% | $7,640 | $7,650 | $81,819 | $6,818 |
Step by step: $75,000 single filer in Indiana
- Gross wages: $75,000
- Exemptions: −$1,000
- Indiana taxable income: $74,000
- 2.95% on $74,000 = $2,183.00
- Indiana income tax: $2,183 — 2.91% of gross pay, with a marginal state rate of 2.95%.
- With $7,670 of federal income tax and $5,738 of FICA, total tax is $15,591 and take-home pay is about $59,410 ($2,285 every two weeks).
Local income taxes in Indiana
Every county levies a local income tax on residents, roughly 0.5% to 3% depending on the county (Marion County/Indianapolis is 2.02%). Enter your county rate in the local tax box.
To include a local tax, type its rate in the “Other local / city income tax rate” box in the calculator — it is applied to Indiana taxable income, the base used by county taxes. At a 1% local rate, $75,000 of wages would add about $740 a year.
Sales tax and other Indiana taxes
The Indiana state sales tax rate is 7%, and local governments may add their own rates on top. Spending $30,000 a year on taxable goods would cost roughly $2,100 in state sales tax alone.
Compare Indiana with neighboring states
State income tax on $75,000 of wages for a single filer in Indiana and its neighbors. Moving to Ohio would cut state income tax on this salary by about $564 a year, while Illinois would cost about $1,385 more.
| State | Type | Top rate | Tax on $75k | vs IN |
|---|---|---|---|---|
| Indiana | Flat | 2.95% | $2,183 | — |
| Illinois | Flat | 4.95% | $3,568 | +$1,385 |
| Michigan | Flat | 4.25% | $2,937 | +$754 |
| Ohio | Flat | 2.75% | $1,619 | −$564 |
| Kentucky | Flat | 3.5% | $2,507 | +$324 |
If you live in one of these states and work in another, you generally file a non-resident return in the work state and claim a credit at home for the tax paid. Indiana has reciprocity with KY, MI, OH, PA and WI, so residents of those states working here (and vice versa) usually pay only their home state.
How to lower your Indiana income tax
- Pre-tax retirement savings. Putting $10,000 into a traditional 401(k) on a $75,000 salary cuts Indiana tax by about $295 on top of the federal savings.
- Claim state credits. Check the Indiana return for earned-income, child, education and renter or property-tax credits that this estimate doesn’t include.
- Watch residency and work location. Days worked in another state and the date you move in or out change how much each state can tax.
- Time large income. Bonuses, stock sales and Roth conversions all land on your state return too.
See all states side by side in the state income tax calculator, or check the federal side with the federal income tax calculator and your per-check withholding in the paycheck calculator.
Sources and updates
Rates, brackets and deductions are for tax year 2026. Source: official Indiana tax agency page, cross-checked with the Tax Foundation’s 2026 state income tax tables and 2026 state legislation. Data last reviewed November 4, 2026.
Indiana income tax FAQ
What is the Indiana state income tax rate?
Indiana has a flat 2.95% rate for 2026. A single filer earning $75,000 pays an effective rate of about 2.91%.
How much Indiana income tax do I pay on $75,000?
About $2,183 for a single filer and $2,154 for a married couple filing jointly, using the standard deduction. Including federal income tax and FICA, a single filer takes home about $59,410 a year.
What is the Indiana standard deduction?
Indiana has no standard deduction. You also get a personal exemption of $1,000 per taxpayer and a dependent exemption of $2,500 per dependent.
Does Indiana have local income taxes?
Every county levies a local income tax on residents, roughly 0.5% to 3% depending on the county (Marion County/Indianapolis is 2.02%). Enter your county rate in the local tax box.
Is Indiana a high-tax state?
On a $75,000 salary Indiana ranks 38 of the 42 jurisdictions that tax wages (1 = highest), among the lowest. Among its neighbors, Ohio is cheapest at $1,619.