Indiana Paycheck Calculator

Every Indiana resident owes two separate income taxes: the flat state rate, and a mandatory Local Income Tax (LIT) set by their specific county of residence, added directly on top of the state amount. This calculator now computes both — select your county from the dropdown above and the county-tax line reflects that county's exact current rate, rather than a generic disclosure that you'd have to look up yourself.

The rates come directly from the Indiana Department of Revenue's own Departmental Notice #1 (R46/01-26), the DOR's single official consolidated county rate chart, effective Jan. 1, 2026 and covering all 92 counties. Rates currently range from 0.50% in Porter County up to 3.00% in Randolph County — a meaningful spread, since at $75,000 a year that's the difference between $375 and $2,250 in annual county tax alone.

Six counties (Carroll, Grant, Greene, Howard, Shelby, and Union) changed their rate as of this Jan. 1, 2026 notice compared with the prior Oct. 1, 2025 one, which is why this calculator cites the specific effective date rather than an undated 'current' rate.

One small, honestly-disclosed simplification remains: Indiana's own withholding formula applies the county rate to the same exemption-reduced taxable income used for the state tax, while this calculator (consistent with how the underlying engine handles Missouri's and Colorado's local taxes) applies the county rate to gross wages. The difference is at most about $30 a year for a single filer or $60 for a joint filer, even at the highest county rate — small enough not to change any practical decision, but worth knowing if you're reconciling this figure against an actual pay stub to the penny.

Indiana's flat individual income tax rate has been on a gradual downward path in recent years: the Indiana Department of Revenue's own Rates, Fees & Penalties page confirms 2.95% for 2026, down from 3.00% in 2025, with a further scheduled reduction to 2.90% for 2027 already built into the state's existing multi-year plan. Tax Foundation's independently published 2026 state rankings cross-check the identical figures.

Unlike some other states' revenue-trigger mechanisms, where a cut depends on hitting a specific state revenue benchmark in a given year, Indiana's reduction path appears to follow a predetermined schedule rather than a conditional trigger — though as with any multi-year tax plan, future legislative action could still adjust it before 2027 arrives. County LIT rates move independently of this state-rate schedule and are set by each county's own fiscal body, so a falling state rate doesn't necessarily mean a falling county rate in any given county.

This calculator applies the confirmed 2.95% rate for tax year 2026 specifically, alongside Indiana's $1,000 personal exemption ($2,000 for married filing jointly with the additional spousal exemption).

This calculator's Indiana figures cover federal income tax, Indiana's flat state income tax, your selected county's Local Income Tax, and the two federal FICA taxes. Indiana has no state-run disability insurance or paid-family-leave payroll premium as of 2026, unlike states such as Colorado or Connecticut that layer a genuine second payroll deduction on top of income tax — so there's no additional payroll-premium line to model here.

Indiana's exemption structure also includes an additional $1,000-per-dependent exemption and an age-65+ exemption on Schedule 3 of the state's IT-40 form, neither of which this calculator models since it collects no dependents or age input — consistent with every other state calculator on this site that omits household-composition-dependent adjustments.

A worker comparing Indiana take-home pay across job offers in different counties can now use the county selector directly, rather than mentally adjusting for a disclosed-but-uncomputed gap — the county tax line updates automatically for whichever county is selected.