Indiana Paycheck Calculator
Estimate your Indiana take-home pay — federal tax, Indiana's flat state income tax, Social Security, and Medicare all included.
Indiana payroll tax overview
Indiana uses a flat income tax rate of 3.05% on all taxable income at the state level, and the rate is scheduled to decrease slightly each year as part of an ongoing legislated phase-down.
Indiana is one of a handful of states where individual counties add their own additional local income tax on top of the state rate — every Indiana county levies some local rate, typically between 0.5% and 3%. This calculator estimates state-level tax only.
Worked example
A single filer earning $75,000/year in Indiana, paid biweekly:
| Item | Per paycheck | Annual |
|---|---|---|
| Gross pay | $2,884.62 | $75,000.00 |
| Federal income tax | ≈ $313.00 | ≈ $8,140.00 |
| Social Security | $178.85 | $4,650.00 |
| Medicare | $41.83 | $1,087.50 |
| Indiana state tax (3.05%) | ≈ $87.98 | ≈ $2,287.50 |
| Net pay | ≈ $2,262.88 | ≈ $58,835.00 |
Local income context: how Indiana compares
According to the most recent U.S. Census Bureau American Community Survey, Indiana's median household income is $71,959 — below the 2024 national median of $81,604. Indiana's economy remains heavily weighted toward manufacturing and logistics — its central location and interstate access have made it a major distribution hub — which tends to produce solid but not exceptional median incomes compared to states with larger finance, tech, or government sectors.
Median household income reflects a full household (often two earners), while the calculator above estimates take-home pay for a single individual's salary — so it's a useful benchmark for context rather than a direct comparison, but it helps illustrate how a given salary stacks up against typical earnings in Indiana.
Frequently asked questions
How Indiana compares to other states
Indiana's state-only flat rate of 3.05% is among the lower rates nationally, but once a typical county rate of 1%-2% is added, total marginal rates for many Indiana residents land closer to 4%-5%, still competitive compared to most progressive-tax states in the region.
Indiana cost-of-living context
Indiana's cost of living is generally below the national average, with the Indianapolis metro area carrying somewhat higher housing costs than the rest of the state. Combined with relatively low overall tax burden even after county tax is added, Indiana offers strong take-home pay relative to cost of living.
More frequently asked questions
Indiana minimum wage context
Indiana follows the federal minimum wage with no state-level minimum wage law of its own, and no Indiana city sets a higher local minimum. The federal rate applies uniformly if you're entering an hourly figure into this calculator.