Indiana Take-Home Pay Calculator 2026
Quick Answer: In 2026, Indiana has a flat 2.95% income tax. On a gross annual salary of $75,000, a single W-2 filer takes home approximately $59,410, while married joint filers take home about $62,469. Use the paycheck calculator below to estimate your exact net earnings.
What is the state tax in Indiana?
Indiana levies a flat 2.95% income tax on W-2 wages. Standard deduction shields a portion from tax.
What do you keep on a $75,000 salary?
Single W-2 filers retain about 79.2% of their gross paycheck, leaving $59,410 net.
How does FICA payroll tax apply?
A flat 6.2% is deducted for Social Security (up to $184,500) and 1.45% is deducted for Medicare.
Are OBBBA tax shelters applicable?
Yes. The federal overtime tax deduction helps W-2 earners shield their half-time overtime premiums from income tax.
How Does Indiana Tax Your Paycheck in 2026?
Your net take-home pay depends on federal income tax brackets, FICA payroll taxes, and state income tax codes. Indiana has a flat 2.95% income tax on personal wages. Standard deductions for 2026 are set at $1 000 for single W-2 filers and $2 000 for married joint filers, which reduce taxable income before tax brackets apply.
Federally, tax brackets are progressive, ranging from 10% to 37% (Rev. Proc. 2025-32). FICA taxes are also flat, with 6.2% Social Security (up to $184,500) and 1.45% Medicare.
What Do You Keep: Paycheck Breakdown in Indiana?
The table below outlines how much you keep at different gross annual salaries. These calculations assume a single W-2 filer with a standard deduction and no pre-tax retirement or health insurance contributions:
| Gross Salary | Federal Tax | State Tax | FICA | Take-Home Pay | Effective Rate |
|---|---|---|---|---|---|
| $50,000 | $3,820 | $1,446 | $3,825 | $40,910 | 18.2% |
| $75,000 | $7,670 | $2,183 | $5,738 | $59,410 | 20.8% |
| $100,000 | $13,170 | $2,921 | $7,650 | $76,260 | 23.7% |
| $150,000 | $24,734 | $4,396 | $11,475 | $109,396 | 27.1% |
- Federal tax$13,17013%
- Indiana tax$2,9213%
- FICA$7,6508%
- Take-home$76,26076%
- Gross$100,000
What Indiana-specific taxes affect your paycheck?
Indiana taxes wages at a single flat state rate with no graduated brackets, so every dollar of taxable income is taxed at the same percentage. The Indiana Department of Revenue sets the 2026 individual adjusted gross income tax rate at 2.95%, down from 3.00% in 2025, and it is scheduled to fall to 2.90% in 2027.
Indiana county local income tax (LIT)
All 92 Indiana counties levy a local income tax, ranging from 0.50% in several counties up to 3.38% in Pulaski County. This is in addition to the flat state rate, and withholding is based on your county of residence as of January 1. Confirmed 2026 examples include Marion (Indianapolis) at 2.02%, Hendricks at 1.50%, and Hamilton at 1.10%. Check the current Departmental Notice #1 for your exact county rate, since councils can adjust them.
Withholding form and payroll figures
- Indiana employees file Form WH-4 to set state and county withholding by residence county.
- Indiana has no state paid-family-leave or disability payroll deduction; federal FICA (6.2% Social Security and 1.45% Medicare) still applies.
- Employer unemployment tax (SUTA) uses a taxable wage base of the first $9,500 of each worker's wages.
- The state minimum wage is $7.25 per hour ($2.13 tipped), matching the federal floor.
For context, Indiana's median household income was about $71,957 (U.S. Census, 2024 dollars), useful for gauging where your take-home pay falls.
How Do You Calculate Your Indiana Paycheck Step-by-Step?
Want to calculate your paycheck manually? Follow this ordered step-by-step list:
- Determine your gross annual wages (or wages per pay period).
- Subtract pre-tax deductions like traditional 401(k) contributions (up to $23,500) and health premiums.
- Subtract your federal standard deduction ($16,100 for single filers, $32,200 for married joint filers) to find your federal taxable income.
- Apply progressive 2026 federal income tax brackets to calculate your federal tax.
- Subtract your state standard deduction (if any) to find state taxable income, and apply the flat rate or progressive brackets of Indiana.
- Compute FICA payroll taxes: 6.2% for Social Security on wages up to $184,500, and 1.45% for Medicare.
- Subtract all calculated taxes and FICA from your gross pay to find your net take-home salary.
How Does the 2026 Federal Deduction Affect Overtime in Indiana?
Under the federal OBBBA overtime tax deduction (valid for tax years 2025 through 2028), the 0.5x premium portion of your time-and-a-half overtime rate is exempt from federal income tax. This deduction is capped at $12,500 for single W-2 filers and $25,000 for married couples filing jointly. You still owe FICA and state income taxes on this premium portion. To calculate your overtime premium tax savings, visit our dedicated No Tax on Overtime Calculator.
How Does Indiana Compare to Neighboring States?
Comparing income taxes across neighboring states helps evaluate job offers and geographical cost advantages: