Indiana Paycheck Calculator
Estimate your Indiana take-home pay. Indiana has a flat 2.95% state income tax for 2026 (down from 3% in 2025, per HB 1001 passed in 2023) with a $1,000-per-person exemption — second-lowest state rate in the nation behind Arizona. But Indiana counties also levy a Local Income Tax (LIT) ranging from 0.5% to 3% — Marion County (Indianapolis) is 2.02%, Lake County is 1.5%. The LIT is NOT included in this calculator.
How to use this calculator
- Type your gross pay per paycheck — what you earn before any tax or deduction comes out.
- Pick your pay frequency (biweekly is the default — it's the most common).
- Set your federal filing status (Single or Married Filing Jointly).
- If you contribute to a traditional 401(k), enter the percentage. Add any pre-tax health or HSA deductions per paycheck.
- The result updates as you go. Use Share link to send your numbers to someone else without retyping them.
A real example: a $60,000 salary in Indianapolis
Say you take a $60,000-a-year job in Indianapolis, paid every two weeks, single, no 401(k). That's $2,307.69 gross per paycheck. The math goes like this for the year (state only — add Marion County's 2.02% LIT separately):
| Line | Amount |
|---|---|
| Gross pay | $60,000.00 |
| Federal income tax (after the $16,100 federal standard deduction) | −$5,020.00 |
| Social Security (6.2% up to $184,500) | −$3,720.00 |
| Medicare (1.45%) | −$870.00 |
| Indiana state tax (2.95% × ($60,000 − $1,000 exemption)) | −$1,740.50 |
| Take-home for the year | $48,649.50 |
| Take-home per biweekly check | $1,871.13 |
About 19% of your gross goes to federal, FICA, and Indiana state tax combined — but Marion County (Indianapolis) adds another 2.02% local income tax on top, which works out to about $1,212/year additional on a $60k salary. The LIT varies dramatically by county: Lake County is 1.5%, Hamilton County is 1.1%, Pulaski County is 3% (the highest). If you don't know your county, check your last paystub or W-2.
Now add a 5% traditional 401(k) and $200/month in pre-tax health premiums on a $120,000 salary, married, paid monthly: gross $10,000/mo, $500 to the 401(k), $200 to health. Indiana follows federal — both pre-tax items reduce IN taxable income, plus the exemption doubles to $2,000. State tax for the year runs about $3,234, and your monthly take-home lands around $7,591 (before county LIT).
How a Indiana paycheck is calculated
Indiana uses a flat tax for 2026. The formula is:
A few Indiana-specific details worth knowing:
- 2.95% is for 2026 only — the rate keeps dropping. Indiana's path: 3.05% (2024) → 3.0% (2025) → 2.95% (2026) → 2.9% (2027) per HB 1001 (2023). Further drops to as low as 2.55% by 2030 in even-year 0.05% steps, subject to revenue triggers, per SB 451 (2025).
- County LIT is the big asterisk. Indiana counties levy Local Income Tax separately — Marion County (Indianapolis) 2.02%, Lake County 1.5%, Hamilton 1.1%. The LIT applies to the same income base. This calculator covers state tax only. Check Indiana DOR's county tax rate table to add yours.
- $1,000/person exemption — no income phase-out. Unlike Illinois (where the per-person exemption cliffs to $0 above $250k/$500k AGI), Indiana's $1,000 exemption applies at any income level. Each dependent adds another $1,000 (with a $1,500 boost for qualifying dependent children under 19).
- 401(k) and pre-tax both reduce IN tax. Indiana follows federal treatment for retirement and Section 125 deductions.
- Social Security is fully exempt in Indiana. Other retirement income (pensions, 401(k), IRA distributions) is taxed at the flat 2.95% rate. Military retirement and railroad retirement get separate full exemptions.
What Indiana paychecks look like at common salaries (single, no 401k)
| Annual salary | Federal tax | FICA | IN tax (2.95%) | Net per year | Net per biweekly check |
|---|---|---|---|---|---|
| $40,000 | $2,620.00 | $3,060.00 | $1,150.50 | $33,169.50 | $1,275.75 |
| $50,000 | $3,820.00 | $3,825.00 | $1,445.50 | $40,909.50 | $1,573.44 |
| $60,000 | $5,020.00 | $4,590.00 | $1,740.50 | $48,649.50 | $1,871.13 |
| $75,000 | $7,670.00 | $5,737.50 | $2,183.00 | $59,409.50 | $2,284.98 |
| $100,000 | $13,170.00 | $7,650.00 | $2,920.50 | $76,259.50 | $2,933.06 |
| $150,000 | $24,734.00 | $11,475.00 | $4,395.50 | $109,395.50 | $4,207.52 |
Numbers above are estimates with the 2026 standard deduction, single filer, no 401(k) or pre-tax deductions. Your actual withholding will differ based on your W-4.
Tips to take home more
- Max out pre-tax benefits first. Health insurance, HSA, and FSA dollars reduce both your federal tax and FICA — that's a roughly 22–28% discount on those expenses for most people.
- A 401(k) is real money, not a deduction. A 5% contribution on $60k is $3,000 the IRS doesn't see right now. You're not losing it — you're moving it.
- Check your W-4 if your refund or bill is large. A big refund means you overpaid all year; a big bill means you underpaid. Either way, the IRS withholding estimator at irs.gov/W4App helps fix it.
- Track the Social Security cap. If you'll cross $184,500 this year, your last few checks will be noticeably bigger — useful to know if you're planning big purchases.
Frequently asked questions
What is Indiana's state income tax rate in 2026?
Indiana has a flat 2.95% state income tax for 2026 (down from 3% in 2025, per HB 1001 passed in 2023). The rate is scheduled to drop further to 2.9% in 2027 and could go as low as 2.55% by 2030 in 0.05% even-year steps if revenue triggers are met, per SB 451 (2025).
How much of a $60,000 salary do you take home in Indiana?
A single filer earning $60,000 in Indiana with no pre-tax deductions takes home roughly $48,650 a year (before county LIT), or about $1,871 every two weeks. That's $5,020 federal, $4,590 FICA, and $1,740.50 IN state tax (2.95% on $59,000 after the $1,000 exemption). Marion County residents pay an additional 2.02% local income tax — about $1,212 more on $60k.
Does Indianapolis have a local income tax?
Yes — Marion County (which contains Indianapolis) charges a Local Income Tax (LIT) of 2.02% on top of state tax. The LIT applies to Indiana taxable income. Different Indiana counties have different LIT rates: Lake County 1.5%, Hamilton County 1.1%, Pulaski County 3% (highest), etc. This calculator does NOT include LIT — check Indiana DOR's county LIT rate table for your county.
What is the Indiana personal exemption for 2026?
$1,000 per filer — you, your spouse if filing jointly, and each dependent. There's an additional $1,500 exemption for each qualifying dependent child under 19. Unlike Illinois, Indiana's exemption has no income phase-out — it applies whether you earn $30k or $3M.
Are retirement benefits taxed in Indiana?
Social Security is fully exempt. Other retirement income (pensions, 401(k), IRA distributions) is taxed at the flat 2.95% rate plus county LIT. Military retirement pay and railroad retirement benefits are fully exempt from Indiana state income tax.
Does this calculator match what my employer withholds?
It gives a close estimate, not an exact match. Employers withhold using IRS Publication 15-T and the full details on your Form W-4 — extra withholding, multiple jobs, dependents, credits. This tool models the standard deduction with a single or married filing status, which is what most people end up close to at tax time.