Indiana take-home pay
Indiana taxes wages, and on $85,000 that costs you $2,478 a year on top of federal tax and FICA. What matters more is what the total leaves you where you actually live.
That is $66,150 a year, after federal tax, FICA, state tax and any local tax or premium.
- Federal
- $9,870
- FICA
- $6,502
- State
- $2,478
- Effective rate
- 22.2%
| Year | Month | Paycheck | |
|---|---|---|---|
| Gross pay | $85,000.00 | $7,083.33 | $3,269.23 |
| Federal income tax | $-9,870.00 | $-822.50 | $-379.62 |
| Social Security | $-5,270.00 | $-439.17 | $-202.69 |
| Medicare | $-1,232.50 | $-102.71 | $-47.40 |
| State income tax | $-2,478.00 | $-206.50 | $-95.31 |
| Take-home pay | $66,149.50 | $5,512.46 | $2,544.21 |
How Indiana taxes wages
A flat 2.95% of taxable wages.
| Item | Amount |
|---|---|
| Standard deduction, single | None |
| Standard deduction, married | None |
| Exemption | $1,000 deducted from wages |
| Withholding certificate | WH-4 |
State rate cut from 3.00% to 2.95% for 2026, with further cuts already legislated.
Indiana has no standard deduction. Form WH-4 exemptions are $1,000 a year per personal exemption, $1,500 per additional dependent, $1,500 per first-time additional dependent and $3,000 per adopted-child dependent.
EVERY ONE of Indiana's 92 counties levies a local income tax, on the same exemption-reduced wage base as the state tax. Rates for 2026 run from 0.50% (Porter) to 3.00% (Randolph). Only the largest counties are listed here.
The county rate is set by the employee's county of residence, or county of principal employment, as of 1 January - captured on Form WH-4.
Counties that changed for 2026: Carroll, Grant, Greene, Howard, Shelby and Union.
Full official list of all 92 county rates: Departmental Notice #1 at https://www.in.gov/dor/files/dn01.pdf
Local income taxes
| Locality | How it works | On $85,000 | Notes |
|---|---|---|---|
| Marion County (Indianapolis) | 2.020% of wages | $1,717 | County code 49. |
| Lake County | 1.500% of wages | $1,275 | County code 45. |
| Allen County (Fort Wayne) | 1.590% of wages | $1,352 | County code 02. |
| Hamilton County | 1.100% of wages | $935 | County code 29. One of the lowest rates in the state. |
| St. Joseph County (South Bend) | 1.750% of wages | $1,488 | County code 71. |
| Elkhart County | 2.000% of wages | $1,700 | County code 20. |
| Vanderburgh County (Evansville) | 1.250% of wages | $1,062 | County code 82. |
| Tippecanoe County (Lafayette) | 1.280% of wages | $1,088 | County code 79. |
| Monroe County (Bloomington) | 2.140% of wages | $1,819 | County code 53. |
| Porter County | 0.500% of wages | $425 | County code 64. The lowest county rate in Indiana. |
| Hendricks County | 1.700% of wages | $1,445 | County code 32. |
| Johnson County | 1.400% of wages | $1,190 | County code 41. |
| Madison County (Anderson) | 2.250% of wages | $1,912 | County code 48. |
| Delaware County (Muncie) | 1.500% of wages | $1,275 | County code 18. |
| Vigo County (Terre Haute) | 2.000% of wages | $1,700 | County code 84. |
| Clark County | 2.000% of wages | $1,700 | County code 10. |
| Bartholomew County (Columbus) | 1.750% of wages | $1,488 | County code 03. |
| Howard County (Kokomo) | 2.350% of wages | $1,998 | County code 34. Rate changed for 2026. |
| LaPorte County | 1.450% of wages | $1,232 | County code 46. |
| Kosciusko County (Warsaw) | 1.000% of wages | $850 | County code 43. |
| Wayne County (Richmond) | 1.250% of wages | $1,062 | County code 89. |
| Randolph County | 3.000% of wages | $2,550 | County code 68. The highest county rate in Indiana. |
What Indiana leaves you
| Salary | Federal | FICA | State | Take-home | Effective rate |
|---|---|---|---|---|---|
| $50,000 | $3,820 | $3,825 | $1,446 | $40,910 | 18.2% |
| $75,000 | $7,670 | $5,738 | $2,183 | $59,410 | 20.8% |
| $100,000 | $13,170 | $7,650 | $2,920 | $76,260 | 23.7% |
| $150,000 | $24,734 | $11,475 | $4,396 | $109,396 | 27.1% |
| $250,000 | $51,304 | $15,514 | $7,346 | $175,836 | 29.7% |
Against the states people move to and from
| State | State tax | Premiums | Take-home | Against this state |
|---|---|---|---|---|
| Texas | $0 | $0 | $79,180 | $1,357 |
| Florida | $0 | $0 | $79,180 | $1,357 |
| California | $5,560 | $1,300 | $72,320 | $-5,503 |
| New York | $4,836 | $443 | $73,901 | $-3,922 |
| Washington | $0 | $1,387 | $77,793 | $-30 |
| Indiana | $2,920 | $0 | $76,260 | $-1,563 |
Moving state changes the tax and, almost always by more, the rent. The relocation guide puts both in one number. Common moves involving Indiana: IL to IN.
For the wider arithmetic, the two-state offer guide compares two offers on what is left after tax and rent, this guide explains why your bracket is not your tax rate, and this one covers the choice between a 401(k) and an HSA.
Questions people actually ask
Does Indiana have a state income tax?
Yes. A flat 2.95%.
What else comes out of my paycheck in Indiana?
Federal income tax, Social Security at 6.2% and Medicare at 1.45%.
Does Indiana follow federal rules on 401(k) and HSA?
401(k) deferrals: yes, excluded. HSA contributions: yes, excluded.
Figures on this page are for the 2026/27 tax year (6 April 2026 to 5 April 2027) and were last checked on 29 August 2026. Every rate we use is listed on the sources page.