Indiana charges 2.95% flat + local state income tax plus local taxes in some areas. Use the 1099 vs w2 calculator pre-loaded with Indiana rates.
Open 1099 vs W2 Calculator →Use the 1099 vs w2 calculator with Indiana's flat 2.95% state income tax rates pre-loaded. Some localities in Indiana impose additional income taxes. Enter your numbers to see results specific to Indiana's tax environment.
Indiana levies a flat 2.95% state income tax on all taxable income regardless of how much you earn. This makes tax planning straightforward: for every additional dollar you earn, 2.95 cents goes to Indiana. However, certain localities in Indiana impose their own income taxes, which effectively raise the combined state and local rate above 2.95%. Be sure to check whether your city or county adds a local income tax.
The table below shows what you actually keep at five salary levels in Indiana, accounting for federal tax, FICA, and Indiana's flat 2.95% state tax plus estimated local taxes.
See how Indiana compares to other Midwest states. Each link takes you to the 1099 vs w2 calculator landing page for that state.
For a comprehensive breakdown of Indiana’s tax structure, salary comparisons, cost-of-living analysis, and more, visit the full Indiana take-home pay page.