Indiana Income Tax & Paycheck Calculator
Estimate your 2024 Indiana take-home pay including state, county, and federal taxes.
Estimated Paycheck Breakdown
How Indiana Income Tax Works
Indiana is unique in the United States because it utilizes a flat state income tax rate combined with individual county-level income taxes. While the state rate is relatively low compared to neighbors like Illinois, the addition of county taxes can make a significant difference in your final take-home pay.
1. Indiana State Tax Rate (2024)
As of 2024, the Indiana state income tax rate has been lowered to 3.05%. This is a flat tax, meaning regardless of whether you earn $20,000 or $200,000, the percentage withheld by the state remains the same. The state has plans to continue gradually lowering this rate to 2.9% by 2027, provided certain state revenue targets are met.
2. Indiana County Taxes
In addition to the state rate, every county in Indiana adopts its own local income tax. These rates typically range from 0.5% to 3.0%. For example:
- Marion County (Indianapolis): 2.02%
- Hamilton County: 1.1%
- Allen County: 1.48%
- Lake County: 1.5%
3. Federal Obligations
Even in Indiana, you are subject to federal tax obligations:
- FICA: This covers Social Security (6.2%) and Medicare (1.45%), totaling 7.65% on earnings up to the wage base limit.
- Federal Income Tax: Unlike Indiana's flat rate, federal taxes are progressive, ranging from 10% to 37% based on your specific income bracket and filing status.
Real-World Example Calculation
If you live in Indianapolis (Marion County) and earn $60,000 annually, filing as single:
| Tax Component | Annual Amount (Est.) |
|---|---|
| Gross Income | $60,000 |
| Federal Income Tax | ~$5,200 |
| FICA (7.65%) | $4,590 |
| IN State Tax (3.05%) | $1,830 |
| IN County Tax (2.02%) | $1,212 |
| Total Annual Take-Home | $47,168 |
This averages out to approximately $1,814 per bi-weekly paycheck, assuming no other pre-tax health insurance or 401k contributions.