Indiana Income Tax Calculator
Calculate your total tax burden in Indiana. See IN state income tax (3.05% top rate), federal tax, and FICA combined. Free, instant, private.
The state of Indiana uses a flat 3.05% state income tax on all taxable income in 2026. State standard deduction: $0 single / $0 married. Plus federal income tax (10%-37% across 7 brackets) and FICA (Social Security 6.2%, Medicare 1.45%). Property tax averages 0.83% and sales tax averages 7%. Low flat 3.05%. County taxes add 0.5-2.96%. Uses federal AGI. Property tax caps 1-3%.
Indiana Income Tax Calculator
Pre-filled with Indiana median: $61,944
Your Total Tax Burden
$12,023
Take-Home: $49,921 · Effective Rate: 19.4%
Federal Tax
$5,395
8.7% eff.
IN State Tax
$1,889
3.0% eff.
FICA
$4,739
7.7% eff.
Take-Home
$49,921
80.6% kept
Tax Breakdown
Indiana Tax Bracket Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $61,944.00 | $5,162.00 |
| Federal Income Tax | -$5,394.78 | -$449.57 |
| Indiana State Tax | -$1,889.29 | -$157.44 |
| Social Security (6.2%) | -$3,840.53 | -$320.04 |
| Medicare (1.45%) | -$898.19 | -$74.85 |
| Take-Home Pay | $49,921.21 | $4,160.10 |
Marginal Tax Rate
3.05%
IN state only
Effective Tax Rate
19.4%
All taxes combined
Indiana Tax System Overview
Indiana has a low flat 3.05% income tax, but all 92 counties levy additional taxes of 0.5% to 2.96%. Uses federal AGI. Sales tax is a flat 7% statewide. Property taxes are capped at 1-3%.
Top Income Tax
3.05%
Property Tax
0.83%
Sales Tax (Avg)
7%
Median Income
$61,944
Other Taxes in Indiana
Capital Gains Tax
Taxed as regular income at 3.05%
Property Tax
Average effective rate of 0.83%. On a $300,000 home, this equals approximately $2,490 per year, or $208 per month.
Sales Tax
State rate of 7%, with a combined average of 7% including local taxes.
Filing Tips for Indiana
Account for county tax on top of 3.05%. Indiana uses federal AGI with state adjustments. Property taxes are capped. College and teacher credits available.
- Maximize pre-tax contributions to 401(k) ($23,500 limit in 2026, $31,000 if 50+) to reduce both federal and IN state taxable income.
- Use an HSA if you have a high-deductible health plan. Contributions ($4,400 individual, $8,750 family) are pre-tax and reduce your tax burden.
- Review your W-4. If you regularly get large refunds, adjust your withholding to keep more money in each paycheck throughout the year.
Compare Indiana to Nearby States
If you lived in a neighboring state instead, here is how your state tax would change on $61,944 income:
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Frequently Asked Questions
What is the income tax rate in Indiana?
Indiana has a flat income tax rate of 3.05%. This means all taxable income is taxed at the same rate regardless of how much you earn. Low flat 3.05%. County taxes add 0.5-2.96%. Uses federal AGI. Property tax caps 1-3%.
How much state tax will I pay in Indiana on $61,944?
On income of $61,944 filing single in Indiana, you would pay approximately $1,889 in state income tax (effective rate of 3.0%). This is after the state standard deduction of $0.
Does Indiana tax capital gains?
Taxed as regular income at 3.05%. Capital gains treatment varies by state — some tax them as regular income while others offer exclusions or preferential rates.
How does Indiana compare to neighboring states for taxes?
Indiana's neighboring states include Michigan (4.25% top rate), Ohio (3.5% top rate), Kentucky (4% top rate). Property tax rates, sales taxes, and cost of living should also be considered when comparing overall tax burden. Use the calculator above to compare your specific tax liability across states.
What is the Indiana state income tax filing deadline for 2026?
Indiana state income tax returns are due April 15, 2026 (matching the federal deadline). If April 15 falls on a weekend or holiday, the deadline shifts to the next business day. Extensions: Indiana typically grants automatic 6-month extensions to October 15, 2026, but tax owed must still be paid by April 15 to avoid penalties.
Does Indiana tax retirement income, Social Security, and pensions?
Indiana taxes retirement income with state-specific exclusions. Social Security: only 11 states tax SS benefits in 2026 (CO, CT, KS, MN, MT, NM, RI, UT, VT, WV, MO partially); Indiana's treatment varies. Pensions and 401(k)/IRA withdrawals are generally taxable as ordinary income at 3.05% top rate, with possible exclusions for federal/military pensions or low-income seniors. Check Indiana's 2026 retirement income exclusion thresholds.
What deductions and credits are unique to Indiana in 2026?
Indiana offers standard deduction of $0 (single) / $0 (married). Additional state-specific items typically include: Indiana-specific tax credits (e.g., property tax credit, education credit, EITC supplement if available), retirement income exclusions, and state-conformity to federal deductions like SALT cap, mortgage interest, charitable contributions. Check Indiana's state tax form for the full list of state-specific credits in 2026.
If I work remotely in Indiana for an out-of-state employer, what tax do I pay?
As a Indiana resident working remotely for an out-of-state employer, the rules depend on reciprocity agreements. Reciprocity-pair states (PA-NJ, IL-IA, MI-OH, etc.) let you pay tax only to Indiana. Without reciprocity, you may pay tax to BOTH states, then claim a credit on Indiana's return for taxes paid to the work state. NY, PA-Philadelphia, and other "convenience of employer" jurisdictions can override these rules. Verify your employer's state tax setup.