Indiana Salary & Tax Calculator
See exactly how much you're taking home in Indiana. This calculator is pre-filled with the state's 3.05% flat income tax rate so you can get a realistic estimate fast.
Indiana's state-level income tax rate is one of the lowest flat rates in the country at 3.05%, and it has actually been trending downward over the past decade as lawmakers phased in successive rate cuts. That alone puts Indiana below regional neighbors like Illinois (4.95% flat) and Iowa (3.8% flat). However, the state number only tells half the story: every single one of Indiana's 92 counties adds its own Local Income Tax (LIT) on top of the state rate, and those county rates vary widely — from roughly 0.5% in some rural counties to well over 2.5% in others, including parts of the Indianapolis metro area. That means two Indiana residents earning the same salary in different counties can end up with meaningfully different combined tax bills, even though everyone pays the same 3.05% to the state. Unlike Illinois or Hawaii, where the state figure is the whole story, Indiana workers need to check their county's LIT rate to get an accurate combined estimate. Use the calculator below with the 3.05% state rate pre-loaded, then bump the percentage up to account for your county's local tax before adding your federal effective rate.
*Estimates only. Not tax, financial, or legal advice. Consult a tax professional for precise figures.
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How it Works
Strips away estimated income taxes and common deductions from your gross Indiana salary to reveal your actual take-home (net) pay.
The Formula
Net Pay = Gross Pay - (Federal Tax + Indiana State Tax 3.05% + County Local Income Tax + FICA + Pre-tax Deductions).
Pro Tip
Look up your county's Local Income Tax rate on the Indiana Department of Revenue site and add it to the 3.05% state rate before running the calculator — otherwise you'll underestimate your total tax.
Frequently Asked Questions
Does Indiana have a state income tax? +
Yes. Indiana levies a flat state income tax rate that has been on a slow downward glide path, currently 3.05%, one of the lower flat rates among states that tax income.
How does Indiana's income tax compare to its neighbors? +
At 3.05%, Indiana's flat state rate is noticeably lower than Illinois's 4.95% and Iowa's 3.8%. It's roughly in line with Ohio's lower brackets, though Ohio uses a graduated system. Compared to most Midwestern neighbors, Indiana's state-level rate alone is competitive.
Do Indiana counties add a local income tax? +
Yes, and this is important: every one of Indiana's 92 counties levies its own Local Income Tax (LIT) on top of the 3.05% state rate, typically ranging from about 0.5% to over 3% depending on the county. Your total Indiana income tax burden depends heavily on where you live or work.
How much can Indiana's county tax add to my bill? +
County LIT rates vary widely; some rural counties charge close to 0.5% while others charge over 2.5%. On top of the 3.05% state flat rate, a resident of a high-LIT county could see a combined local income tax burden approaching 5-6%, closer to Illinois's flat rate.
What tax rate should I use for this calculator? +
The field is pre-filled with 3.05%, Indiana's state flat rate, but you should add your specific county's Local Income Tax rate to get an accurate combined state-plus-local percentage before including your federal effective rate.