Indiana income tax in 2026
Indiana taxes wages at a flat 2.95% of taxable income. Indiana has no standard deduction. The filer, spouse and each dependent get a $1,000 exemption, with $1,500 more for each dependent child and $1,000 more for anyone 65 or older ($1,500 if federal AGI is under $40,000).
| Taxable income | Rate |
|---|---|
| Over $0 | 2.95% |
The extra first-year exemptions for a newborn or adopted child and the renter's deduction aren't included.
Local taxes: Every county levies a county income tax on the same income, from 0.5% to 3% in 2026 (2.02% in Marion County, Indianapolis). Not included above.
Examples
- Single, $60,000: take-home about $48,650 a year ($4,054 a month) after $5,020 federal tax, $4,590 FICA and $1,741 Indiana tax.
- Married, $120,000, two children under 17: about $101,847 a year ($8,487 a month) after $5,640 federal tax (after the Child Tax Credit), $9,180 FICA and $3,334 Indiana tax.
Both use the federal standard deduction and no pre-tax deductions; change any detail in the calculator above.
Questions
What is Indiana's income tax rate in 2026?
Indiana taxes wages at a flat 2.95% of taxable income in 2026. Indiana has no standard deduction. The filer, spouse and each dependent get a $1,000 exemption, with $1,500 more for each dependent child and $1,000 more for anyone 65 or older ($1,500 if federal AGI is under $40,000).
How much is $60,000 a year after tax in Indiana?
For a single filer with no pre-tax deductions, about $48,650 a year ($4,054 a month): $5,020 federal income tax, $4,590 Social Security and Medicare and $1,741 Indiana income tax.
Are there local income taxes in Indiana?
Yes: Every county levies a county income tax on the same income, from 0.5% to 3% in 2026 (2.02% in Marion County, Indianapolis). They aren't included in this calculator.
Indiana rules checked on 2026-10-01: in.gov, forms.in.gov. Federal figures from the IRS (Rev. Proc. 2025-32). An estimate, not tax advice.