What's the effective tax rate in Indiana at $100,000 single filer in 2026?

For a single filer at $100K gross in Indiana, expect roughly federal $14,000 + FICA $7,650 + Indiana state tax (varies by bracket) + any local tax. Plug your numbers into the calculator above for an exact verdict — the rate depends on which brackets your taxable income crosses after standard deduction.

When are Indiana tax brackets updated for 2026?

Indiana's Department of Revenue typically publishes updated brackets in Q4 preceding the tax year (late 2025 for 2026 tax year). The calculator's brackets reflect the latest published or projected values, last verified 2026-05-13. Always confirm against Indiana Department of Revenue — flat 2.95% + county income tax (2026 projected) for filing.

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Indiana Paycheck Calculator 2026 — Flat 2.95% Rate + Marion County Local Tax

Drop your Indiana gross salary — get annual + monthly + bi-weekly take-home, full breakdown of federal + FICA + Indiana state + local tax, effective rate, and how you compare to the Indiana median household. Includes 2026 Indiana brackets from the Indiana Department of Revenue.

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Reviewed by CalcBold Editorial · Sources: IRS Pub 15-T 2026 (projected) + SSA wage-base 2026 + Indiana Department of Revenue — flat 2.95% + county income tax (2026 projected)Last verified May 13, 2026Methodology

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How much do I take home in Indiana? — short answer first

Indiana runs a flat 2.95% state income tax (2026 projected) — part of a multi-year phase-down toward 2.9% by 2027 under IC 6-3-2-1. Combined with the lowest flat rate of any state with local income tax, the headline rate looks favourable. The complication: all 92 Indiana counties levy their own income tax (CAGIT/COIT/COIT-EDIT mechanisms) on top of the state rate, ranging from 0.5% (rural counties) to 3.38% (Pulaski). Marion County (Indianapolis) is 2.02%; Lake County (Gary/Hammond) is 1.5%; Hamilton County (Carmel/Fishers) is 1.1%. Indiana also maintains reciprocity with Kentucky, Michigan, Ohio, Pennsylvania, and Wisconsin — the broadest Midwest reciprocity network for cross-border commuters.

How Indiana taxes payroll in 2026

Indiana levies a flat state individual income tax under IC 6-3-2-1 with a multi-year phase-down schedule: 3.15% (2023) → 3.05% (2024) → 3.0% (2025) → 2.95% (2026 projected) → 2.9% target (2027). Each annual reduction is conditional on meeting state revenue growth triggers — but historically Indiana has met its triggers, so 2.95% is the expected 2026 rate. Indiana has no standard deduction; the state uses a $1,000 personal exemption plus a $1,500 dependent exemption (per dependent). All 92 Indiana counties levy their own personal income tax in addition to the state rate, under the CAGIT (County Adjusted Gross Income Tax) and COIT (County Option Income Tax) mechanisms. County rates range from 0.5% (rural southern counties) to 3.38% (Pulaski County). The county-tax base is generally identical to the state taxable income base — your county rate is applied to the same AGI-derived figure as the 2.95% state rate. For example, an Indianapolis resident earning $75,000 pays approximately: state 2.95% × ($75K - $1K personal exemption) + Marion County 2.02% × $74K = $2,183 state + $1,495 county = $3,678 combined. County tax for cross-border workers: Indiana reciprocity covers the STATE portion only. A Kentucky resident working in Indianapolis pays Indiana's 2.02% Marion County tax (since Marion County tax falls outside reciprocity) but no Indiana state tax. Indiana maintains reciprocity with Kentucky, Michigan, Ohio, Pennsylvania, and Wisconsin — the broadest Midwest reciprocity network.

Indiana state income tax brackets (single filer, 2026)

Taxable income up to	Marginal rate
Above prior threshold	2.95%

Standard deduction (single): $0 · top marginal rate 2.95%. Married filing jointly + head of household brackets follow the same shape with adjusted thresholds.

Indiana city callouts

Indianapolis (Marion County) — 2.02% county tax + 2.95% state = 4.97% combined; among the higher Midwest combinations.
Fort Wayne (Allen County) — 1.59% county tax + 2.95% state = 4.54% combined; meaningfully lower than Indianapolis at the same gross.
Carmel + Fishers (Hamilton County) — 1.10% county tax + 2.95% state = 4.05% combined; among the lowest combined rates in IN suburbs of major metros.

Local tax stack in Indiana

Marion County (Indianapolis) (residents) — 2.02% of FICA wages
Lake County (Gary, Hammond) (residents) — 1.50% of FICA wages
Hamilton County (Carmel, Fishers) (residents) — 1.10% of FICA wages

Reciprocity + multi-state notes

Indiana has reciprocity with Kentucky, Michigan, Ohio, Pennsylvania, and Wisconsin at the STATE level — the broadest Midwest reciprocity network. County-level income tax falls outside reciprocity; cross-border workers in Indianapolis still owe Marion County's 2.02% on Indianapolis-source wages.

How to use this calculator

Enter your annual gross salary. Pre-tax, what your employer pays before any deductions.
Pick filing status. Single, married filing jointly, married filing separately, or head of household. Drives both federal and Indiana brackets.
Add 401(k) and HSA contributions (optional). Both lower your federal taxable income; HSA also lowers FICA wages.
Pick your locality. Drives local-tax stacking (NYC, Yonkers, etc). NONE if you live outside any locality with local payroll tax.
Read the verdict. Annual + monthly + bi-weekly take-home, federal + state + local breakdown, and effective tax rate.

Common mistakes

Confusing gross with adjusted gross. The calculator wants your gross salary — what your employer pays before any pre-tax deductions or contributions. If you enter your W-2 Box 1 (already net of 401k), the math will under-count your tax.
Forgetting that 401(k) is still subject to FICA. Traditional 401(k) reduces federal income tax but NOT Social Security + Medicare. Only HSA (through payroll) reduces both.
Using the wrong filing status for state tax. Indiana uses the same filing status categories as the IRS, but bracket thresholds differ from federal. Pick the status that matches your actual tax filing — not just what gives the best number.
Not selecting your locality. If you live in a city with local payroll tax (NYC, Yonkers, etc.), the locality dropdown above is required for accurate math.
Ignoring multi-state implications. If you work in Indiana but live elsewhere (or vice versa), you may owe taxes in both states with a credit between them. This calculator assumes you both live and work in Indiana.

Methodology & Sources

Federal income tax + FICA: IRS Pub 15-T 2026 projected brackets + Social Security Administration 2026 wage base ($181,000) + Medicare 1.45% (no cap) + Additional Medicare 0.9% above $200K/$250K thresholds. Indiana state income tax: Indiana Department of Revenue — flat 2.95% + county income tax (2026 projected) — last verified 2026-05-13. Local taxes (NYC + Yonkers + similar) sourced from the same state DOR publication. Brackets refresh annually — most state DORs publish updates in Q4 preceding the tax year. Federal 2026 figures are projected from 2025 (Rev. Proc. 2024-40) with ~2.5% inflation adjustment; refresh against IRS October release.

Frequently asked questions

Why does Indiana have so many local income taxes?

All 92 Indiana counties levy local income tax under the CAGIT (County Adjusted Gross Income Tax) and COIT (County Option Income Tax) statutes (IC 6-3.6). Counties use the revenue to fund local services like jails, libraries, and economic development — replacing some of what property tax funds in other states. Rates range from 0.5% (rural southern counties) to 3.38% (Pulaski County).

What's the combined state + county rate in Indianapolis?

Marion County (Indianapolis) levies 2.02% local income tax on top of Indiana's 2.95% state rate (2026 projected) — combined effective 4.97% for residents. At a $75K salary, this works out to ~$3,700 combined state + county income tax. Suburbs in Hamilton County (Carmel, Fishers) pay 1.10% local + 2.95% state = 4.05% combined — meaningfully lower than Marion County for the same salary.

I live in Kentucky but work in Indianapolis — what do I pay?

Kentucky-Indiana reciprocity covers STATE tax only — you owe no Indiana state tax. But Marion County (Indianapolis) local income tax (2.02%) falls outside reciprocity and is owed on Indianapolis-source wages. Submit Form WH-47 to your employer to halt Indiana state withholding; the employer continues county withholding. Kentucky typically credits you for the county tax paid.

When does Indiana's tax rate drop to 2.9%?

Indiana's phase-down schedule under IC 6-3-2-1 targets 2.9% for tax year 2027, contingent on meeting state revenue growth triggers in each preceding biennial budget cycle. 2026 is projected at 2.95%. Historically Indiana has met its triggers — but the schedule is not constitutionally locked, so legislative changes are possible.

Want to compare Indiana take-home pay against another state? Use the national take-home pay calculator with a flat-rate state input. To see what you'd save by changing your 401(k) contribution, drop the gross salary into the salary-to-hourly calculator. For cost-of-living adjustments when comparing jobs across states, the cost of living calculator adjusts for housing + groceries + tax differences between metros.

Frequently Asked Questions

The most common questions we get about this calculator — each answer is kept under 60 words so you can scan.

What's the effective tax rate in Indiana at $100,000 single filer in 2026?
For a single filer at $100K gross in Indiana, expect roughly federal $14,000 + FICA $7,650 + Indiana state tax (varies by bracket) + any local tax. Plug your numbers into the calculator above for an exact verdict — the rate depends on which brackets your taxable income crosses after standard deduction.
When are Indiana tax brackets updated for 2026?
Indiana's Department of Revenue typically publishes updated brackets in Q4 preceding the tax year (late 2025 for 2026 tax year). The calculator's brackets reflect the latest published or projected values, last verified 2026-05-13. Always confirm against Indiana Department of Revenue — flat 2.95% + county income tax (2026 projected) for filing.
Why does Indiana have so many local income taxes?
All 92 Indiana counties levy local income tax under the CAGIT (County Adjusted Gross Income Tax) and COIT (County Option Income Tax) statutes (IC 6-3.6). Counties use the revenue to fund local services like jails, libraries, and economic development — replacing some of what property tax funds in other states. Rates range from 0.5% (rural southern counties) to 3.38% (Pulaski County).
What's the combined state + county rate in Indianapolis?
Marion County (Indianapolis) levies 2.02% local income tax on top of Indiana's 2.95% state rate (2026 projected) — combined effective 4.97% for residents. At a $75K salary, this works out to ~$3,700 combined state + county income tax. Suburbs in Hamilton County (Carmel, Fishers) pay 1.10% local + 2.95% state = 4.05% combined — meaningfully lower than Marion County for the same salary.
I live in Kentucky but work in Indianapolis — what do I pay?
Kentucky-Indiana reciprocity covers STATE tax only — you owe no Indiana state tax. But Marion County (Indianapolis) local income tax (2.02%) falls outside reciprocity and is owed on Indianapolis-source wages. Submit Form WH-47 to your employer to halt Indiana state withholding; the employer continues county withholding. Kentucky typically credits you for the county tax paid.
When does Indiana's tax rate drop to 2.9%?
Indiana's phase-down schedule under IC 6-3-2-1 targets 2.9% for tax year 2027, contingent on meeting state revenue growth triggers in each preceding biennial budget cycle. 2026 is projected at 2.95%. Historically Indiana has met its triggers — but the schedule is not constitutionally locked, so legislative changes are possible.