Take Home Pay for Indiana (2026)
Last updated: January 15, 2026
Indiana (IN) Key Facts
State Income Tax
3.05%
Sales Tax Rate
7%
Property Tax Rate
0.85%
Overall State Tax Burden
10.9% combined rates
How This Calculator Works in Indiana
This calculator estimates your take-home pay in Indiana, factoring in federal income tax, FICA, and Indiana's state income tax.
Indiana Overview
Take-home pay in Indiana is affected by federal income tax, FICA, and state income tax at flat 3.05%. Indiana has county income taxes ranging from 0.5% to 2.9% that are also withheld from paychecks, on top of the flat 3.05% state rate.
How Indiana Compares
Indiana's combined rates (income: 3.05%, sales: 7%, property: 0.85%) compare to Illinois (4.95%, 6.25%, 2.27%) and Ohio (3.5%, 5.75%, 1.56%).
| State | Top Rate | Notes |
|---|---|---|
| Illinois | 4.95% | Illinois has an income tax rate of 4.95%. |
| Ohio | 3.5% | Ohio has an income tax rate of 3.5%. |
| Michigan | 4.25% | Michigan has an income tax rate of 4.25%. |
Indiana's income tax rate of 3.05% compares to a national average of approximately 5.04%. This is below the national average.
Tips for Indiana Residents
- 1Indiana state income tax at flat 3.05% reduces your take-home pay on every paycheck.
- 2Indiana has county income taxes ranging from 0.5% to 2.9% that are also withheld from paychecks, on top of the flat 3.05% state rate.
- 3Pre-tax 401(k), HSA, and FSA contributions reduce both federal and state taxable income, increasing your net pay.
- 4Your effective tax rate is typically lower than your marginal rate, especially in flat tax states.
- 5After major life changes (marriage, new child, job change), review both federal W-4 and state withholding forms to optimize take-home pay.