| Gross Pay: | $'+gross.toFixed(2)+' |
| Pre-tax Deductions: | -$'+pretax.toFixed(2)+' |
| Federal Income Tax: | -$'+fedTaxPerPeriod.toFixed(2)+' |
| FICA (SocSec + Medicare): | -$'+ficaAmount.toFixed(2)+' |
| Indiana State Tax (3.05%): | -$'+stateAmount.toFixed(2)+' |
| County Tax ('+countyRate+'%): | -$'+countyAmount.toFixed(2)+' |
| Take-Home Pay: | $'+netPay.toFixed(2)+' |
How to Use the Indiana Paycheck Calculator
Calculating your take-home pay in the Hoosier State requires understanding three distinct layers of income tax: federal, state, and county. Use this indiana paycheck calculator to estimate your net income after all mandatory withholdings and voluntary deductions are applied. This tool is specifically tailored to Indiana's unique flat-tax structure and county-level taxation system.
To get an accurate result, you will need to provide the following information:
- Gross Pay per Period
- This is your total earnings before any taxes or deductions. If you are salaried, divide your annual salary by your pay frequency. If you are hourly, multiply your hourly rate by the number of hours worked in a pay period.
- Pay Frequency
- Select how often you receive a paycheck (e.g., Weekly, Bi-weekly, Monthly). This determines how the annual federal tax brackets are applied to your specific check.
- Indiana County Tax Rate
- Every county in Indiana levies its own income tax. Rates typically range from 1% to 3.2%. You should use the rate for the county where you lived on January 1st of the current year.
- Pre-tax Deductions
- Include contributions to 401(k) plans, 403(b) plans, health savings accounts (HSA), or health insurance premiums that are deducted before taxes are calculated.
Understanding Indiana Payroll Taxes
When using an indiana paycheck calculator, it is important to recognize that Indiana is one of the few states with a flat state income tax and mandatory county taxes for all residents. Here is the breakdown of what is withheld from your check:
Net Pay = Gross Pay – Federal Tax – FICA – (State Tax + County Tax) – Deductions
- Federal Income Tax: Based on progressive brackets ranging from 10% to 37%. Our calculator applies the standard deduction based on your filing status.
- FICA Taxes: This consists of 6.2% for Social Security and 1.45% for Medicare, totaling 7.65% for most employees.
- Indiana State Tax: As of 2024, Indiana utilizes a flat tax rate of 3.05%. This is applied to your adjusted gross income.
- County Income Tax: This varies by locality. For example, Marion County (Indianapolis) currently has a rate of 2.02%, while Hamilton County sits at 1.1%.
Indiana Paycheck Example
Example: Let's look at an employee living in Marion County, Indiana, who earns $52,000 annually and is paid bi-weekly (26 times a year). They file as Single and contribute $100 per paycheck to a 401(k).
Step-by-step solution:
- Gross Pay: $2,000.00 per period.
- Pre-tax Deduction: $100.00 (Taxable amount = $1,900.00).
- Federal Tax Estimate: ~$165.00 (based on 2024 brackets and standard deduction).
- FICA (7.65% of $1,900): $145.35.
- Indiana State Tax (3.05% of $1,900): $57.95.
- Marion County Tax (2.02% of $1,900): $38.38.
- Total Net Pay: $1,900 – $165.00 – $145.35 – $57.95 – $38.38 = $1,493.32
Common Questions
Which Indiana county tax rate should I use?
In Indiana, you use the tax rate of the county where you maintained your principal place of residence as of January 1st of the tax year. If you move during the year, your withholding rate generally does not change until the following January 1st.
Is the Indiana state tax rate going down?
Yes, Indiana has enacted legislation to gradually reduce the state income tax rate. It dropped from 3.15% to 3.05% for 2024, with additional planned reductions in future years pending state revenue targets.
How do 401(k) contributions affect my Indiana taxes?
Traditional 401(k) contributions are "pre-tax," meaning they reduce your taxable income for federal, state, and county tax purposes. This results in immediate tax savings on every paycheck you receive.