Indiana Income Tax Calculator
Figure basis: Official Indiana Department of RevenueIndiana income tax is calculated on your taxable income after deductions and exemptions. This calculator estimates your Indiana state income tax liability for the current tax year. Enter your annual gross income, choose your filing status (single, married filing jointly, married filing separately, or head of household), and add any pre-tax deductions to see your estimated state tax, effective tax rate, and marginal bracket. Results update in real time as you adjust your inputs. The calculator covers Indiana state income tax only; federal income tax, FICA payroll taxes, and any local income taxes your city or county imposes are separate. All rates and brackets are sourced directly from Indiana Department of Revenue and are verified for the current tax year. Use this tool alongside the federal income tax calculator to see your combined total tax liability. Effective rate and marginal rate are both shown so you can evaluate the impact of additional income, filing status changes, or increased pre-tax contributions to a 401(k) or similar plan.
Indiana applies a flat income tax rate of 2.95% to all taxable income. On a $60,000 salary (single filer) the state income tax is $1,770.00, an effective rate of 2.95%.
Local Income Tax
Indiana levies a county adjusted gross income tax (CAGIT) on all residents and non-residents earning income in Indiana. The county rate is based on the same adjusted gross income as the state tax and is in addition to Indiana's 2.95% state flat rate.
How Indiana income tax works
Indiana imposes a flat 2.95% tax on adjusted gross income for tax year 2026. Under the phased reductions in HEA 1001 (2023), codified at Indiana Code section 6-3-2-1, the rate fell from 3.15% (2023) to 3.05% (2024) to 3.00% (2025) to 2.95% (2026), and the Indiana Department of Revenue states it will adjust to 2.90% in 2027. In addition to the state rate, Indiana counties levy their own income taxes at rates that vary by county, collected by the state through the same return. Your result updates the page link, so you can copy a permalink to any calculation.
taxable income = gross income - standard deduction
state income tax = taxable income x flat rate / 100
effective rate = state income tax / gross income x 100
Why your Indiana county rate can outweigh the state cut
Indiana's flat state rate keeps falling. Under HEA 1001 (2023), codified at Indiana Code 6-3-2-1, it stepped from 3.15% in 2023 down to 2.95% for 2026, and the Department of Revenue says it adjusts to 2.90% in 2027, subject to revenue reserve targets. At 2.95%, Indiana has one of the lowest flat state income tax rates in the country.
The catch is the county tax. Every Indiana county levies its own income tax on the same adjusted gross income, and the rates dwarf the recent state cuts. They range from 0.5% in Porter County to well above 2.5%, with Jasper at 2.864% and Randolph at 3.0%. A resident of a high-rate county can pay more in county tax than in state tax, so the 2.95% headline understates the real burden. You use the rate for the county where you lived on January 1 of the tax year, not where you work.
Indiana also breaks from most states by having no standard deduction at all. Instead it grants a $1,000 personal exemption per taxpayer and per dependent, plus $1,500 for each qualifying child. For a family, those exemptions do far less work than the federal standard deduction, so a larger share of income stays taxable at both the state and the county level. When comparing Indiana with its neighbors, always add your county rate to the 2.95% before drawing conclusions about who is cheaper.
Indiana income tax: frequently asked questions
How much is the Indiana income tax on a $60,000 salary?
A single filer earning $60,000 a year in Indiana has a taxable income of $60,000.00 after the standard deduction. The computed state income tax is $1,770.00, an effective rate of 2.95%. Enter your own income above for an exact figure.
What is the Indiana state income tax rate?
Indiana applies a flat income tax rate of 2.95% to all taxable income, regardless of income level or filing status.
What filing statuses does Indiana income tax apply to?
Indiana income tax applies to single filers, married couples filing jointly, head of household filers and married couples filing separately. Bracket thresholds and standard deductions may differ by filing status.
Does Indiana have a local income tax?
Yes. Indiana levies a county adjusted gross income tax (CAGIT) on all residents and non-residents earning income in Indiana. The county rate is based on the same adjusted gross income as the state tax and is in addition to Indiana's 2.95% state flat rate. Use the Local Income Tax section on this page to calculate your combined state and local tax by selecting your jurisdiction.
What is Indiana's state income tax rate for 2026?
Indiana's flat state income tax rate is 2.95% for tax year 2026. This rate applies to all adjusted gross income regardless of filing status. Under HEA 1001 (2023) the rate stepped down from 3.00% in 2025 to 2.95% effective January 1, 2026, per Indiana Code section 6-3-2-1, and the Indiana Department of Revenue states it will adjust to 2.90% in 2027.
Does Indiana have a standard deduction?
Indiana does not have a standard deduction. Instead, Indiana allows a personal exemption of $1,000 for each taxpayer (and $1,000 for a spouse on a joint return) and $1,000 for each dependent claimed on Schedule 3, plus an additional $1,500 exemption for each qualifying dependent child. See Indiana Code section 6-3-1-3.5.
Does Indiana have county income taxes?
Yes. In addition to the 2.95% state rate, each Indiana county may impose its own county income tax. County rates vary and are collected by the Indiana Department of Revenue through the same state return. Rates range roughly from 0.5% to nearly 3% depending on the county. You must use the county rate for the county where you lived on January 1 of the tax year.
Will Indiana's income tax rate continue to fall?
The Indiana Department of Revenue states that the rate, 2.95% for 2026, adjusts to 2.90% in 2027 under HEA 1001 (2023). The scheduled reductions are contingent on Indiana meeting its revenue reserve requirements.
Official sources
- Indiana income tax rates (tax year 2026): Indiana Department of Revenue, as at Jul 16, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 11 June 2026. See our methodology. General information, not financial or tax advice.