Indiana Tax & Salary Calculators (2026)
Everything you need to work out pay and tax as a Indiana resident in 2026, in one place. Indiana applies a flat 3.00% income tax after a $0 state standard deduction. Federal income tax and FICA (6.2% Social Security up to $184,500 plus 1.45% Medicare) apply on top, identically in every state — the Indiana layer is what makes your net pay different from a neighbour's.
Indiana is scheduled to keep cutting its flat rate — from 3.05% in 2026 to 2.9% by 2027, possibly the lowest progressive-revenue state rate. Cost of living in Indiana sits at index 90 (US average = 100), median household income is $70,051, and a one-bedroom apartment in Indianapolis rents for around $1,200 per month. The local economy leans on manufacturing, pharma (Eli Lilly), and logistics.
Indiana calculators
Indiana income tax brackets 2026 (single filer)
| Taxable income | Rate |
|---|---|
| $0 and up | 3.00% |
Every Indiana county levies its own income tax, ranging from 0.5% to 3.0% (Marion County / Indianapolis: 2.02%).
Indiana tax facts beyond income tax (2026)
| State sales tax | 7% |
| Avg. effective property tax | 0.84% of home value |
| Minimum wage 2026 | $7.25 / hour |
| Top state income tax rate | 3.00% |
| Reciprocity agreements | Kentucky, Michigan, Ohio, Pennsylvania, Wisconsin |
Indiana charges a 7% state sales tax, homeowners pay an average effective property tax of 0.84% of market value, and the minimum wage in force during 2026 is $7.25 an hour. 7% statewide with no local sales tax.
County income tax is withheld alongside the state rate based on your county of residence on 1 January.
Indiana exempts Social Security and offers a deduction for certain military and federal civil service pensions.
Commuting and remote work across Indiana lines
Indiana holds income-tax reciprocity agreements with Kentucky, Michigan, Ohio, Pennsylvania and Wisconsin. If you commute between them, your wages are taxed only by your state of residence — file the exemption certificate with your employer so the wrong state is not withheld from every paycheck.
If you work remotely for an out-of-state employer, the state where you physically sit normally has the first claim on your wages, while your employer may still be required to register for Indiana withholding. Keep a day-count record whenever you split the year between Indiana and Illinois.
Indiana vs Illinois: $75,000 salary compared
| Measure | Indiana | Illinois |
|---|---|---|
| Annual take-home | $59,343 | $57,880 |
| Effective tax rate | 20.9% | 22.8% |
| Cost-of-living index | 90 | 93 |
| Property tax rate | 0.84% | 2.07% |
| State sales tax | 7% | 6.25% |
The paycheck difference is $1,463 a year on a $75,000 salary, but the full picture depends on housing: a one-bedroom in Indianapolis runs about $1,200 a month, and property and sales taxes shift the balance again. See the Illinois hub for the mirror view.