State Tax Guide · Indiana · 2026
Indiana Income Tax: Complete Employee Guide (2026)
Understand the modeled Indiana withholding method, source-backed rates, deductions, and take-home pay examples for employees.
Does Indiana have income tax?
Indiana levies a flat state income-tax withholding rate on modeled taxable wages.
Indiana tax rates
2.95% flat withholding rate for the modeled default path.
Official source: https://www.in.gov/dor/files/dn01.pdf
Take-home pay examples
These examples use the calculator engine for a single filer paid biweekly with a standard W-4 and no pre-tax deductions.
| Annual salary | Indiana withholding | Net annual | Net biweekly |
|---|---|---|---|
| $40,000 | $1,151 | $33,170 | $1,275.75 |
| $60,000 | $1,741 | $48,650 | $1,871.13 |
| $80,000 | $2,331 | $62,780 | $2,414.60 |
| $100,000 | $2,921 | $76,260 | $2,933.06 |
| $150,000 | $4,396 | $109,396 | $4,207.52 |
How to reduce Indiana tax withholding
Traditional 401(k) contributions and HSA contributions are available as modeled pre-tax inputs in the calculator. State-specific HSA conformity is not encoded as a dedicated data field, so check current Indiana guidance or consult a qualified tax professional before relying on HSA treatment.
The encoded default withholding method does not include a separate single-filer standard-deduction field.
Key differences from federal withholding
Federal income-tax withholding is calculated separately using IRS Publication 15-T. Indiana withholding follows the encoded state method described above, with its own rates, deductions, and documented limitations. Local wage taxes, where supported, are separate from the state amount.
Indiana salary after taxes
Browse state-specific salary pages for common annual salaries from $40,000 to $200,000.
Calculate your personalized Indiana take-home pay.
Calculate your Indiana take-home →Frequently Asked Questions
Does Indiana have an income tax?
Indiana levies a flat state income-tax withholding rate on modeled taxable wages.
What is the Indiana income tax rate for 2026?
Indiana uses a sourced flat withholding rate of 2.95% for the modeled default path.
How much Indiana tax on $75,000?
For the modeled default single-filer path, estimated Indiana withholding on a $75,000 salary is $2,183 per year, or $83.96 per biweekly paycheck.
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