How Much Is Indiana State Income Tax in 2026?
Indiana's flat state rate is 2.95% for 2026 — the latest step in a scheduled phase-down to 2.9% in 2027. However, every county adds its own income tax, so most Hoosiers pay a combined rate closer to 4.5%–5.5%.
State income tax
2.95% flat
Falling to 2.9% in 2027
Standard deduction
$0
$1,000 personal exemption
County income tax
0.5%–3%
All 92 counties
$100k take-home
$76,230
State tax only, single filer
Quick Answer: Low State Rate, But Add County Tax
Indiana's state income tax is a flat 2.95% for 2026. A single filer earning $100,000 pays about $2,950 in state income tax and takes home roughly $76,230 after federal tax, FICA, and state tax. That does not include county income tax, which can add another 0.5%–3%.
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How Indiana Taxes Your Income
- Flat 2.95% state rate. Down from 3.23% in 2023, heading to 2.9% in 2027.
- No standard deduction. Indiana uses personal exemptions: $1,000 per taxpayer/spouse, $1,500 per dependent.
- All counties add tax. Every one of Indiana's 92 counties levies a local income tax.
- Clean sales tax. Indiana has a flat 7% state sales tax with no local add-ons.
Indiana Take-Home Pay by Income Level
The table below shows estimated annual take-home pay for a single filer. It includes federal income tax, FICA, and Indiana state income tax only.
| Gross | Federal | FICA | IN State | Take-Home |
|---|---|---|---|---|
| $50,000 | $3,820 | $3,825 | $1,475 | $40,880 |
| $75,000 | $7,670 | $5,738 | $2,213 | $59,380 |
| $100,000 | $13,170 | $7,650 | $2,950 | $76,230 |
| $150,000 | $24,734 | $11,475 | $4,425 | $109,366 |
| $200,000 | $36,734 | $14,339 | $5,900 | $143,027 |
Estimated Tax Breakdown
Indiana County Income Tax
All 92 counties levy a local income tax. Rates range from about 0.5% in the lowest counties to nearly 3% in a few high-rate counties. Marion County (Indianapolis) is around 2%. On a $100,000 salary, that adds roughly $500–$3,000 of additional income tax, so the real combined rate is usually 4%–5.5%.
Retirement and Social Security
Social Security benefits are fully exempt from Indiana income tax. Indiana also offers deductions for military retirement pay and certain civil-service pensions.
Frequently Asked Questions
What is the Indiana income tax rate in 2026?
A flat 2.95% at the state level, scheduled to fall to 2.9% in 2027.
Does Indiana have county income taxes?
Yes — all 92 counties levy one, typically 0.5%–3%. Marion County (Indianapolis) is about 2%.
Does Indiana tax Social Security benefits?
No. Social Security benefits are fully exempt from Indiana income tax.
How much is $100,000 after taxes in Indiana?
About $76,230 after federal tax, FICA, and Indiana state tax — before county tax, which adds roughly $500–$3,000.
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Sources
- Indiana Department of Revenue: 2026 state income tax rate and county tax rates.
- Indiana General Assembly: scheduled state rate phase-down.
- IRS Revenue Procedure 2025-32 — 2026 federal brackets and FICA limits.
Figures are estimates for a single filer with no credits or itemized deductions.