Indiana charges 2.95% flat + local state income tax plus local taxes in some areas. Use the paycheck calculator pre-loaded with Indiana rates.
Open Paycheck Calculator →Indiana uses a flat 2.95% income tax, so the state withholding on each paycheck is predictable and easy to verify. Your employer withholds federal tax progressively, FICA at the standard 7.65%, and a flat 2.95% for Indiana. Some localities in Indiana add their own income tax, which further reduces your per-paycheck net. Enter your gross pay into the calculator to see exactly what lands in your bank account each pay period.
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 paycheck 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.