Your hub for Indiana taxes: state income tax (Flat 3.05%), plus free calculators for take-home pay, self-employment tax, quarterly estimates, and salary conversion.
Last updated: May 2026 · Data: IRS, BLS, Indiana Department of Revenue
Indiana levies a state income tax (Flat 3.05%) that is withheld from wages on top of federal tax and FICA. Indiana has one of the lowest flat income tax rates in the country at 3.05%. However, most counties also impose a local income tax ranging from 0.5% to 2.96%, so your total state+local rate varies by county.
| Tax | 2026 Rate / Detail |
|---|---|
| Indiana State Income Tax | Flat 3.05% |
| Indiana State Sales Tax (base) | 7% |
| Federal Income Tax | 10% to 37% (progressive brackets) |
| Social Security | 6.2% on first $176,100 |
| Medicare | 1.45% on all wages (plus 0.9% above $200,000) |
| Federal Standard Deduction (Single / MFJ) | $15,000 / $30,000 |
| Minimum Wage | $7.25 / hour |
| State Tax Authority | Indiana Department of Revenue |
Indiana has a state income tax. The 2026 rate is Flat 3.05%. This applies on top of federal income tax and FICA (Social Security and Medicare) withheld from your pay.
For 2026, Indiana income tax is Flat 3.05%. Indiana has one of the lowest flat income tax rates in the country at 3.05%. However, most counties also impose a local income tax ranging from 0.5% to 2.96%, so your total state+local rate varies by county.
A Indiana paycheck has federal income tax, Indiana state income tax (Flat 3.05%), Social Security (6.2% up to $176,100), and Medicare (1.45%) withheld. Try the take-home pay calculator for a personalized net-pay estimate.
Yes. Self-employed workers in Indiana generally make quarterly estimated payments to the IRS and to the state if they expect to owe tax. The quarterly estimated tax calculator estimates each payment and the due dates.
The Indiana statewide base sales tax rate is 7%. Local jurisdictions may add their own rates on top of the state rate.