What is Indiana's state income tax rate?

Indiana uses a single flat income tax rate with no brackets. For tax year 2024 the rate is 3.05%, down from 3.15% in 2023, and it continues stepping down toward 3.00% in 2025. The flat rate applies to your Indiana taxable income after exemptions, since Indiana has no standard deduction.

Why does Indiana take county income tax out of my paycheck?

Every Indiana county levies its own local income tax (LIT) on top of the state rate, and it is withheld from your paycheck based on where you lived on January 1. Rates vary by county — for example Marion County is about 2.02% and Allen County about 1.59%. The county tax is applied to the same Indiana taxable income as the state tax.

Does Indiana have a standard deduction?

No. Indiana does not offer a standard deduction. Instead it reduces taxable income with exemptions: $1,000 for each personal exemption (you and your spouse) and an extra $1,500 for each qualifying dependent child, on top of the $1,000 dependent exemption. This calculator applies your personal and dependent exemptions to the Indiana taxable base.

How accurate is this take-home estimate?

The Indiana state and county portions are calculated precisely from the flat rate and your exemptions. The federal income tax and FICA portions are close approximations using 2024 brackets, the standard deduction, and the $168,600 Social Security wage base. Your real net pay can differ slightly based on additional withholdings, credits, and benefit elections.

Are 401(k) and pre-tax benefits included?

Yes. Any amount you enter in the pre-tax field reduces the income subject to federal, state, and county income tax in this estimate, which raises your take-home compared with after-tax contributions. Note that traditional 401(k) contributions still count toward Social Security and Medicare wages, which is how real payroll works.

Indiana Paycheck Calculator

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Indiana keeps its income tax refreshingly simple at the state level — a single flat 3.05% rate for 2024 with no brackets — but adds a twist most states don’t have: a county income tax withheld from every paycheck. This calculator combines the flat state rate, your county rate, Indiana’s exemptions, FICA, and federal withholding to estimate your real take-home pay.

How it works

Indiana taxable income starts from your wages and subtracts exemptions (there is no standard deduction):

Indiana taxable = Wages − ($1,000 × personal exemptions) − ($1,500 × dependent children) State tax = Indiana taxable × 3.05% County tax = Indiana taxable × your county rate

On top of the state and county tax, the tool subtracts federal income tax (2024 brackets after the standard deduction) and FICA — Social Security at 6.2% up to the $168,600 wage base and Medicare at 1.45% on all wages.

The Indiana specifics

Flat state rate. 3.05% in 2024, applied uniformly regardless of income level.
County income tax (LIT). Set by your county of residence on January 1; rates range from roughly 0.5% to over 3%.
Exemptions, not a deduction. $1,000 per personal exemption and $1,500 per dependent child reduce the taxable base.

Worked example

A single filer in Marion County (county rate 2.02%) earning $60,000 with one personal exemption:

Indiana taxable = $60,000 − $1,000 = $59,000
State tax = $59,000 × 3.05% = $1,799.50
County tax = $59,000 × 2.02% = $1,191.80

After federal income tax and FICA are also subtracted, the tool shows the annual and per-paycheck net.

Note: This is an estimate, not tax advice. Federal and FICA figures are approximations; your actual withholding depends on your W-4, additional credits, and benefit elections. Verify Indiana rules and county rates at in.gov/dor.