Overtime Pay Calculator — Indiana (2026)
Overtime in Indiana starts with the federal FLSA floor: 1.5× your regular rate for every hour beyond 40 in a workweek. Some states add daily overtime or double-time rules on top. This calculator shows gross overtime pay and what survives federal, FICA and Indiana taxation in 2026. Indiana uses a flat personal income tax of 3.00% applied to taxable income after a state standard deduction of $0.
Indiana Overtime Pay Calculator
Your base pay per hour.
Hours beyond 40 in the workweek.
Overtime rules that apply in Indiana
Indiana follows the federal weekly standard: overtime is owed after 40 hours in a workweek, with no general daily overtime requirement.
The "regular rate" is not just your base hourly wage — non-discretionary bonuses, shift differentials and commissions must be folded in before multiplying by 1.5, which raises the true overtime rate for many manufacturing workers around Indianapolis.
Is overtime taxed more in Indiana?
No — overtime is ordinary wages. It can feel over-taxed because per-period withholding tables annualize a big check as if every week looked like that, temporarily withholding at a higher rate that you recover at filing.
The Indiana layer applies to overtime exactly as to base pay, at rates up to 3.00%.
Exempt vs non-exempt in Indiana
Salaried does not mean exempt. To be exempt from overtime a worker must clear both a salary threshold and a duties test; misclassification is one of the most common wage claims filed in Indiana.
Cost of living in Indiana sits 10% below the national average (index 90), median household income is $70,051, and a one-bedroom apartment in Indianapolis rents for roughly $1,200 a month.
Local and payroll taxes Indiana adds on top
County income tax is withheld alongside the state rate based on your county of residence on 1 January. That deduction sits outside the federal and state income tax lines, so build it into your own budget on top of the numbers above.
Every Indiana county levies its own income tax, ranging from 0.5% to 3.0% (Marion County / Indianapolis: 2.02%).
Overtime hours carry exactly the same local withholding as regular Indiana hours; the extra pay is taxed at your marginal rates, not at a special penalty rate, even though the deduction line looks bigger.
Working across a state line from Indiana
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.
Remote and hybrid work complicates this further: most states tax income where the work is physically performed, so a Indianapolis resident spending part of the year at a client site in Illinois may owe a nonresident return there. Keep a day-count log if you split time between states.
The rest of your Indiana tax bill
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.
Income tax is only one part of a state's take. Indiana recovers revenue through sales and property tax as well, which is why headline income tax rates alone are a poor guide to how far a salary really goes. Indiana exempts Social Security and offers a deduction for certain military and federal civil service pensions.
Indiana vs Illinois on the same salary
On a $75,000 salary, a single filer keeps about $59,343 a year in Indiana against roughly $57,880 in Illinois — a difference of $1,463, or $122 a month.
Effective combined rates are 20.9% in Indiana and 22.8% in Illinois. Set that gap against living costs: index 90 here versus 93 there, with property tax at 0.84% and 2.07% respectively.
Indiana income tax brackets 2026 (single filer)
| Taxable income | Rate |
|---|---|
| $0 and up | 3.00% |