Indiana ยท 2026 tax year State-specific estimate
Indiana charges a flat 3.05% state income tax on all taxable income, one of the lowest flat rates in the Midwest.
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Indiana estimate
Your estimate changes with filing status, Indiana rules, and the deductions you enter.
Indiana charges a flat 3.05% state income tax on all taxable income, one of the lowest flat rates in the Midwest.
Indiana applies a single flat income tax rate of 3.05% to taxable income. Unlike progressive states, the same rate applies whether you are an entry-level worker or a high earner, which makes the calculation straightforward.
Indiana does not offer a standard deduction, so the rate applies from the first dollar of taxable income. Pre-tax 401(k) contributions, HSA contributions, and employer health premiums reduce your Indiana taxable income.
Indiana counties levy an additional local income tax (typically 0.5% to 2.0%) on top of the state rate, not included here.
Indiana is one of several states using a flat income tax rate. Compare your take-home pay across flat-tax states: Illinois (4.95%), Pennsylvania (3.07%), Georgia (4.99%), North Carolina (3.99%), Arizona (2.5%), Colorado (4.4%), Michigan (4.25%), Iowa (3.8%), Kentucky (3.5%), Utah (4.55%), Mississippi (4.7%), Idaho (5.8%).
Wondering how your income taxes compare to other states? Explore our detailed guides and paycheck calculators for other states: