Indiana Paycheck Calculator
Estimate your Indiana take-home pay after federal tax, FICA, and Indiana state income tax. Enter your gross pay, filing status, and pre-tax deductions to see your net pay per paycheck.
2026 rate, standard deduction, and personal exemption verified against Tax Foundation 2026 data.
- Take-home$52,487.50 · 80.75%
- Federal tax$5,620.00 · 8.65%
- Social Security + Medicare$4,972.50 · 7.65%
- Indiana tax$1,920.00 · 2.95%
| Item | Per bi-week | % of gross |
|---|---|---|
| Gross pay | $2,500.00 | 100% |
| Federal withholding | $216.15 | 8.65% |
| Social Security | $155.00 | 6.20% |
| Medicare | $36.25 | 1.45% |
| Indiana income tax | $73.85 | 2.95% |
| Take-home pay | $2,018.75 | 80.75% |
The state rate is only half of Indiana's income tax
Indiana's 3% state rate is among the lowest flat rates in the country, and quoting it alone materially understates what an Indiana worker pays. Every county in Indiana levies its own local income tax on top, at a rate the county sets, and it is withheld from your paycheck alongside the state tax.
County rates vary widely across the state, which means two people earning identical salaries in neighbouring Indiana counties take home different amounts. No other flat-tax state has this structure applied so universally.
Your county of residence usually decides the rate
Indiana determines your local rate primarily by where you lived on the year's determination date, not where you work. Someone who lives in one county and commutes to a job in another is generally taxed at their home county's rate.
Indiana Form WH-4 asks for both your county of residence and your county of principal employment for exactly this reason. Filling those fields in incorrectly — or leaving them stale after a move — is the most common cause of Indiana withholding being wrong, and it is wrong in a way a federal W-4 review will never catch.
What comes out of an Indiana paycheck
Federal income tax from your W-4, Social Security to the annual cap, Medicare with the high-earner surcharge, the 3% state rate, and your county's local rate. Indiana's personal exemption is small, so most of your income faces both state and county tax.
The calculator above models the state rate. Because county rates differ across the state and are set locally, treat your county tax as an additional percentage on top of the figure shown, and check your current rate with the Indiana Department of Revenue.
If you move within Indiana
A move across a county line inside Indiana can change your income tax even though nothing about your job changed. It is worth checking the destination county's rate before signing a lease, particularly for a household with two incomes, where the difference is doubled.
File an updated WH-4 with your employer as soon as you move. Indiana county tax is withheld on the basis of what your employer has on file, and correcting it at filing is far more work than updating one form.
How Indiana taxes your paycheck
Indiana has a flat 3% state income tax. Use the calculator above to estimate your take-home pay after all withholdings.
Every US paycheck also has federal income tax, Social Security (6.2% up to the annual wage base), and Medicare (1.45%, plus 0.9% on high earners) withheld. Your taxable income is your gross pay minus pre-tax deductions such as 401(k) and pre-tax health premiums.
Frequently Asked Questions
How much is taken out of a paycheck in Indiana?
Indiana paychecks have federal income tax, Social Security (6.2%), and Medicare (1.45%) withheld, plus a flat 3% state income tax. The exact amount depends on your pay, filing status, and pre-tax deductions.
Does Indiana have a state income tax?
Yes. Indiana levies a flat 3% state income tax in addition to federal taxes.
How is this take-home estimate calculated?
It applies 2026 estimated federal brackets, FICA rates, state income-tax rates, local taxes where configured, and employee payroll-program rates to your annual pay minus pre-tax deductions, then divides by your pay frequency. It is a simplified estimate, not official payroll withholding.
Why is my Indiana tax higher than 3%?
Because every Indiana county levies its own income tax on top of the 3% state rate, withheld from the same paycheck. County rates vary across the state, so two people on identical salaries in neighbouring counties take home different amounts.
Which county's rate applies — where I live or where I work?
Generally your county of residence as of the year's determination date. Indiana Form WH-4 collects both your county of residence and your county of principal employment, which is why keeping it current after a move matters.
I moved to a different Indiana county. What do I need to do?
File an updated WH-4 with your employer. Your county tax is withheld from what your employer has on file, so a stale form means the wrong rate all year, and correcting it at filing is considerably more work.