Tax Bracket for Indiana (2026)
Last updated: January 15, 2026
Indiana (IN) Key Facts
Tax Structure
Flat rate
Top Marginal Rate
3.05%
Number of Brackets
1
Tax Year
2,026
How This Calculator Works in Indiana
This calculator shows which Indiana tax bracket your income falls into. Enter your income and filing status to see marginal and effective rates.
Indiana Overview
Indiana levies a flat income tax rate of 3.05% on all taxable income. Unlike progressive states with multiple brackets, every dollar earned in Indiana is taxed at the same rate, making calculations predictable and straightforward.
How Indiana Compares
Indiana's top rate of 3.05% compares to Illinois at 4.95% and Ohio at 3.5%. Comparing effective rates is more meaningful than top rates alone.
| 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 uses a flat income tax rate of 3.05%, meaning all taxable income is taxed at the same rate regardless of how much you earn.
- 2With a flat tax, your marginal rate and effective state rate are the same—3.05%.
- 3Federal brackets still apply progressively on top of Indiana's flat 3.05% rate.
- 4Pre-tax retirement contributions reduce both your federal bracket and the income subject to Indiana's flat 3.05%.
- 5Indiana's flat 3.05% is below the national average of about 5%, making withholding calculations straightforward.