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Indiana Paycheck Calculator

Enter your gross pay, how often you are paid and your filing status. Indiana is already selected. Indiana taxes wages at a flat 2.95%. The state also allows a personal exemption of $1,000 for single filers and $2,000 for couples, which this estimate subtracts before applying the rate (confirmed on the state revenue department pages, 2026-10-30).

Your numbers

This state taxes income in brackets and the calculator uses its 2026 bracket table. Type a rate only to override it; it is then applied to all taxable pay.

Counts toward state dependent exemptions or credits where the state has them. The federal child tax credit is not included.

Some cities and counties tax income. Leave empty if yours does not.

Result

Estimate for information only, not professional advice. Last reviewed .

Tax year 2026. Tax figures last updated October 29, 2026. Sources.

How we calculate it

Your yearly gross pay is the pay per period times the number of periods. Federal income tax comes from the 2026 IRS brackets after the standard deduction and your pre-tax 401(k) and health insurance. Social Security and Medicare are taken from wages as well.

Indiana taxes wages at a flat 2.95%. The state also allows a personal exemption of $1,000 for single filers and $2,000 for couples, which this estimate subtracts before applying the rate (confirmed on the state revenue department pages, 2026-10-30).

On $2,500 gross every two weeks with 5% to a 401(k) and $100 of health insurance, a single filer in Indiana takes home about $1,836.27 per paycheck: federal income tax $189.15, Social Security $148.80, Medicare $34.80 and state income tax $65.98.

Take-home pay in Indiana at five salaries (single filer paid every two weeks, 5% to a 401(k), $100 of health insurance, 2026 tax data): $40,000: $1,132.93 per paycheck; $60,000: $1,695.60 per paycheck; $80,000: $2,231.73 per paycheck; $100,000: $2,721.33 per paycheck; $150,000: $3,931.40 per paycheck.

Indiana compared with the other 50 states and DC (rank 1 is the lowest): state income tax on $75,000 of wages for a single filer is about $2,183 a year, rank 14 of 51 (median $2,550); the combined state and average local sales tax rate is 7%, rank 26 (median 7%); the effective property tax rate is 0.738%, rank 23 (median 0.789%). The income tax figure comes from this calculator’s bracket data, the property tax figure from the Census Bureau, and the sales tax figure from the same file as the rates above.

Beyond your paycheck in Indiana: the median home value is $255,200 and homeowners pay a median of $1,884 a year in property tax (about $157 a month), $1,971 for homes with a mortgage and $1,724 for homes without one (U.S. Census Bureau, ACS 2025). With the state rate and the average local rate combined (7%), every $1,000 of taxable purchases carries about $70.00 of sales tax.

Assumptions and limits

  • An estimate for tax year 2026 using the standard deduction. Your employer withholds from your Form W-4 and the state’s withholding tables, so real paychecks can differ.
  • Indiana is one of the states where some counties or cities charge an income tax (Tax Foundation, 2026: Alabama, Indiana, Iowa, Kentucky, Maryland, Michigan, Missouri, New York, Ohio, Oregon, Pennsylvania). Type your local rate in the optional local income tax field.
  • The federal child tax credit and other credits are not included.
  • Verification of the Indiana figures: rates and brackets were compared with the official source on 2026-10-29. Indiana Department of Revenue: 2.95% for 2026 Personal exemption $1,000 per person ($2,000 married filing jointly) and $1,000 per dependent (Indiana Department of Revenue, Departmental Notice 1 and the IT-40 instructions). The extra $1,500 for a dependent child, the $1,000 for age 65 and over or blind, and county taxes are not included. Source: https://www.in.gov/dor/resources/tax-rates-and-reports/rates-fees-and-penalties/

Frequently asked questions

Does Indiana have a state income tax?

Yes. Indiana has a flat income tax of 2.95% for 2026.

How much is taken out of a $2,500 biweekly paycheck in Indiana?

On $2,500 gross every two weeks with 5% to a 401(k) and $100 of health insurance, a single filer in Indiana takes home about $1,836.27 per paycheck: federal income tax $189.15, Social Security $148.80, Medicare $34.80 and state income tax $65.98.

Is there a local income tax in Indiana?

Indiana is one of the states where some counties or cities charge an income tax (Tax Foundation, 2026: Alabama, Indiana, Iowa, Kentucky, Maryland, Michigan, Missouri, New York, Ohio, Oregon, Pennsylvania). Type your local rate in the optional local income tax field.

What are the sales and property taxes in Indiana?

Indiana’s state sales tax rate is 7%. The typical homeowner pays about $1,884 a year in property tax, an effective rate of 0.738% (U.S. Census Bureau, ACS 2025).

Why is my real Indiana paycheck different from this estimate?

Employers withhold using your Form W-4 and the state’s tables. A second job, extra withholding, dependents, benefits and local taxes all change the result. This calculator estimates the tax for the year and divides it by your pay periods.

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Worked example (a fixed example using the starting numbers, it does not change as you type)

Inputs: Gross pay per pay period ($) = 2500; How often you are paid = Every two weeks (26); Filing status = Single; State you work in = Indiana; Dependents (for state exemptions) = 0; Pre-tax 401(k) contribution (% of pay) = 5; Pre-tax health insurance per pay period ($) = 100; Extra federal withholding per pay period ($) = 0.

  • Take-home pay per biweekly paycheck $1,836.27
  • Gross pay per biweekly paycheck $2,500.00
  • Federal income tax $189.15
  • Social Security $148.80
  • Medicare $34.80
  • State income tax $65.98
  • Local income tax $0.00
  • 401(k) contribution $125.00
  • Health insurance $100.00
  • Take-home pay per year $47,742.98
  • Total tax as a share of gross pay 17.55%
  • Federal marginal rate 12%

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Last reviewed: . Formulas and assumptions are described on our methodology page. For information only; not professional advice.