What is different in Indiana:
- Flat 2.95% state income tax — but every county adds its own local income tax on top.
- The calculator models the 2.95% state rate only; your county adds more (check your pay stub).
- The 2.95% applies to wages after pre-tax deductions like a 401(k).
- Federal income tax, Social Security and Medicare work exactly as in every other state.
What a Indiana paycheck looks like at six salaries
Single filer, paid every two weeks, no 401(k) or other deductions, 2026 figures. Every number below comes from the same tested formulas the calculator above uses.
| Salary | Federal income tax | Social Security + Medicare | Indiana tax | Take-home / year | Take-home / paycheck |
|---|---|---|---|---|---|
| $43,000 | $2,980 | $3,290 | $1,269 | $35,462 | $1,363.92 |
| $63,000 | $5,380 | $4,820 | $1,859 | $50,942 | $1,959.31 |
| $83,000 | $9,430 | $6,350 | $2,449 | $64,772 | $2,491.23 |
| $106,000 | $14,490 | $8,109 | $3,127 | $80,274 | $3,087.46 |
| $136,000 | $21,374 | $10,404 | $4,012 | $100,210 | $3,854.23 |
| $176,000 | $30,974 | $13,464 | $5,192 | $126,370 | $4,860.38 |
Worked example: $78,000, single, paid biweekly
Single filer, paid every two weeks, 5% of salary to a traditional 401(k) — $150.00 per paycheck, $3,900 a year — in Indiana.
- Taxable income: $78,000 − $3,900 401(k) − $16,100 standard deduction (single) = $58,000.00.
- Federal income tax on that amount: $7,472.00 a year.
- Social Security: $4,836.00; Medicare: $1,131.00. The 401(k) does not reduce these.
- Indiana state income tax: $2,185.95.
- Take-home: $78,000 − $3,900 − $7,472.00 − $4,836.00 − $1,131.00 − $2,185.95 = $58,475.05 a year, or $2,249.04 per biweekly paycheck.
Worked example: $19 an hour in Indiana
A single worker earns $19.00 an hour for 40 hours a week: $19.00 × 40 × 52 = $39,520 a year before tax. After federal income tax ($2,562), Social Security ($2,450) and Medicare ($573) ($1,166 of Indiana tax), take-home is $32,768 a year — about $1,260.33 per biweekly paycheck.
Indiana vs Illinois: $83,000
The same single worker earning $83,000, paid biweekly with no 401(k). Indiana's 2.95% state rate takes $2,449 a year; Illinois's 4.95% takes $4,109.
| Indiana | Illinois (4.95% flat) | |
|---|---|---|
| Federal income tax | $9,430 | $9,430 |
| Social Security + Medicare | $6,350 | $6,350 |
| State income tax | $2,449 | $4,109 |
| Take-home per year | $64,772 | $63,112 |
The Indiana worker keeps -$1,660 more per year than the Illinois worker on the state rate — about -$63.85 per paycheck. (Remember: Indiana counties add their own tax on top.) To compare every no-tax and flat-tax state side by side, see take-home pay by state. Also see our Illinois paycheck calculator.
What Indiana does not tax — and what it does
Indiana's 2.95% looks low, but it's only half the story: all 92 counties levy their own local income tax on wages, typically adding another one to three percent. This calculator shows the state 2.95% — your pay stub shows the county line too. Even combined, most Hoosiers still pay less than Illinois's 4.95% across the border.
What this page leaves out
Child and dependent credits, itemized deductions, health premiums, 401(k) contributions beyond the examples above, bonuses and overtime are not in the simplified calculator — the full paycheck calculator covers all of them, with Indiana at its 2.95% flat rate. For exact figures use your employer's payroll system or the IRS Tax Withholding Estimator.
Sources and review
Brackets and standard deductions come from IRS Revenue Procedure 2025-32. The Social Security wage base comes from the Social Security Administration, and Indiana’s 2.95% flat rate is confirmed by the Tax Foundation's 2026 state rates. Last reviewed September 2026. See our methodology for how every figure is checked.