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NetWageTax

Tax year 2026. Federal, FICA, and state rules last checked . How we calculate

Indiana state income tax 2026

Indiana taxes wages at a single 2.95% rate after roughly $1,000 of income that goes untaxed. A single filer earning $65,000 owes an estimated $1,888 for 2026, an effective rate of 2.9%.

Last reviewed . Data: 2026 tax year (laws enacted through mid-2026).

Tax type
Flat tax
Rate
2.95% flat tax
Estimated tax on $65,000 (single filer)
$1,888
Local income taxes
Every county
Calculate your Indiana paycheckTips and overtime calculator

How Indiana taxes wages

Flat rate cut to 2.95% for 2026.

At $65,000 of wages, that is the 9th-lowest estimated bill of the 42 jurisdictions (including DC) that tax wages.

Its 2.95% rate is the 3rd-lowest of the 16 flat-tax states.

Example: $65,000 salary, single filer

State income tax on a $65,000 salary
Wages$65,000
Income not taxed (approx. deduction, exemptions)−$1,000
Income taxed$64,000
Flat rate× 2.95%
Estimated Indiana income tax$1,888

That works out to about $157 a month, or an effective rate of 2.9% of wages.

Calculators for Indiana

  • Paycheck calculator

    Take-home pay after federal income tax, Social Security, Medicare, and Indiana income tax, with Indiana selected.

  • Tips and overtime calculator

    Your federal deduction for qualified tips and overtime, with Indiana selected and its state rules applied to the Indiana estimate.

  • Senior deduction calculator

    A federal deduction of up to $6,000 for each person 65 or older, after the income phase-out.

  • Car loan interest calculator

    A federal deduction for interest on a loan for a new, U.S.-assembled vehicle.

Does Indiana tax tips and overtime?

Indiana follows the federal tips and overtime deduction. SB 243 (2026) allows state deductions equal to the federal ones, for tax year 2026 only.

The example on this page taxes full wages. The tips and overtime calculator subtracts the deduction for your tips and overtime before it estimates your Indiana tax.

Source: Indiana Department of Revenue: deductions, 2026. Checked . See how every state treats tips and overtime

To see your federal deduction and Indiana tax together, open the tips and overtime calculator with Indiana selected.

Local income taxes in Indiana

All 92 counties add a local income tax, typically 1%–3%.

These local taxes are not included in the estimate above.

Indiana vs. neighboring states

Workers in Ohio would owe less on the same salary. Kentucky, Michigan, and Illinois would charge more.

StateEst. tax on $65,000vs. Indiana
Ohio$1,012−$876
Kentucky$2,157+$269
Michigan$2,512+$624
Illinois$3,073+$1,185

Official source

For forms, exact brackets, and filing deadlines, go to the official Indiana tax agency website.

All states and DC on the map

Estimates cover Indiana income tax on wages for a single filer and exclude local taxes and state credits. They are not tax advice. See our disclaimer and how we calculate.