Indiana Paycheck Calculator

This Indiana paycheck calculator works out your 2026 take-home pay after federal income tax, Social Security, Medicare, Indiana’s flat 2.95% state tax, and the income tax your county adds on top. Indiana is one of the few states where every county charges its own income tax. The rates run from 0.5% to 3%, so your county can make a real difference to what you keep.

The rates here come straight from the Indiana Department of Revenue’s Departmental Notice #1, effective January 1, 2026, and the 2026 IRS withholding tables. The calculator uses the same method as an employer’s payroll system and shows every step.

How to use the Indiana paycheck calculator

1. Enter your pay. Choose salary or hourly. Hourly workers add their normal weekly hours and any overtime, paid at 1.5 times the rate. Then pick your pay schedule.
2. Match your W-4. Select your filing status and enter the dependent credits from Step 3. More W-4 options covers Step 4 if you used it.
3. Add your Indiana details. Choose where you lived on January 1 and the county that applies. Enter your exemptions from Form WH-4, Indiana’s state withholding form.
4. Add deductions. Put in any 401(k) percentage, pre-tax insurance or HSA amounts, and after-tax deductions. The result updates as you type.

What comes out of an Indiana paycheck

Five taxes come out of most Indiana paychecks: three federal, one state and one county.

Indiana’s state and county taxes are both flat. Once your exemptions come off, each one is a single percentage of your pay, whatever you earn.

Indiana’s state income tax rate for 2026

Indiana taxes wages at 2.95% in 2026. The rate is the same for everyone. It does not rise with income, and single and married workers pay the same percentage.

The legislature has been lowering it a little each year:

Sources: Indiana Department of Revenue, Tax Year 2024 Changes; Rates, Fees and Penalties; Departmental Notice #1 (2026).

The 2027 cut is small. On a $60,000 salary with one exemption, the drop to 2.90% saves about $29.50 a year. The county rate you live under matters far more.

Several paycheck calculators on the first page of search results still quote 3.05%, which is the 2024 rate. One even says the rate depends on your income level and filing status, which has never been true for Indiana. On a $60,000 salary, using 3.05% instead of 2.95% overstates your state tax by about $59 a year.

Indiana county income tax rates for 2026

All 92 Indiana counties charge a local income tax, and your employer withholds it with your state tax. It is a flat percentage of the same amount your state tax is based on. The Indiana paycheck calculator uses the rate for the county you choose from the list below.

The spread is wide. Porter County charges 0.5% and Randolph County charges 3%. On a $60,000 salary paid every two weeks, that is $11.35 of county tax a paycheck in Porter against $68.08 in Randolph: about $1,475 a year.

Source: Indiana Department of Revenue, Departmental Notice #1, effective January 1, 2026. Carroll, Grant, Greene, Howard, Shelby and Union changed after the notice was first published.

Which county applies: the January 1 rule

Indiana fixes your county once a year, on January 1. If you lived in Indiana that day, you pay the rate of your home county for the whole year, even if you move in March. If you lived in another state on January 1 but worked in Indiana, you pay the rate of the county where you worked that day.

So a worker who moves from Marion County to Hamilton County in June keeps paying Marion’s 2.02% until the next January. Tell your employer about the move anyway, because it changes next year’s rate.

Take-home pay in Indiana’s largest cities

Most people think of where they live by city, not county. Here is the county behind each of Indiana’s biggest cities, and what the same $60,000 salary takes home there every two weeks, for a single filer with one exemption:

Federal tax, FICA and the 2.95% state tax are identical in every row. Only the county line changes, and it moves take-home pay by about $24 a paycheck between Carmel and Bloomington.

How your employer works out Indiana withholding

Indiana’s method is short. Your employer takes your wages for the pay period, subtracts your WH-4 exemptions divided by the number of paychecks in the year, and multiplies what is left by the state rate and then by the county rate. The Indiana paycheck calculator does the same thing across a full year.

The Department of Revenue’s own example shows how it works. An employee earns $800 a week with five personal exemptions, three dependents, one first-time dependent and two adopted children, in a county with a 1% rate. Those exemptions total $17,000 a year, or $326.92 a week. That leaves $473.08 of taxable pay, so the employer withholds $13.96 of state tax and $4.73 of county tax. Our calculator gives the same figures to the cent.

Form WH-4 exemptions

Form WH-4 has four kinds of exemption, and they are worth different amounts:

Most single workers claim one personal exemption. A married couple filing jointly with two children might claim two personal exemptions and two dependents, which takes $5,000 a year off the income that state and county tax apply to. Many online calculators ask for one number of “allowances” and miss the difference between these lines.

When to file a new WH-4

Your WH-4 stays in force until you replace it, so update it when your life changes:

• You marry or divorce, which changes your personal exemptions.
• You have or adopt a child. An adoption is worth $3,000, twice a regular dependent.
• You or your spouse turn 65, or become legally blind, which each adds a personal exemption.
• You want more tax taken out. The WH-4 lets you ask for a fixed extra amount on every paycheck.

A move between counties does not need a new WH-4, but tell your employer so next year’s county is right.

If you live outside Indiana

Indiana has reciprocal agreements with Kentucky, Michigan, Ohio, Pennsylvania and Wisconsin. They cover state tax only. That half-rule is easy to miss, and the Indiana paycheck calculator models it when you pick a neighboring state.

A Kentucky resident earning $60,000 at an Indianapolis job pays no Indiana state tax but still pays Marion County’s 2.02%. Their take-home pay is $1,892.23 every two weeks, about $67 more than an Indiana resident on the same salary. They still owe Kentucky tax on that income, which Kentucky collects separately.

Short trips are treated differently. If you live out of state and work in Indiana for 30 days or less in the year, your employer does not have to withhold Indiana tax at all, as long as you file Form WH-4AFF.

Federal tax on an Indiana paycheck

Federal withholding follows IRS Publication 15-T for 2026, which reflects the One Big Beautiful Bill Act. Your filing status chooses the tax table, and the 2026 standard deduction is built in: $16,100 single, $32,200 married filing jointly and $24,150 head of household. Check the Step 2 box if you have two jobs or a working spouse; it switches to tables that withhold more from each job. Step 3 credits reduce the tax dollar for dollar, and Step 4 covers other income, extra deductions and a flat extra amount each paycheck.

Social Security and Medicare, together called FICA, take 7.65% of most paychecks. Social Security stops once you pass $184,500 in the year. Medicare has no cap and adds 0.9% on pay over $200,000. Unlike Indiana’s taxes, both depend only on your pay, not your W-4 or WH-4.

Overtime and tips: the new federal deductions

From 2025 through 2028, federal law lets you deduct up to $12,500 of qualified overtime pay on your return, or $25,000 on a joint return. Qualified overtime is only the extra part: the half in time and a half. Tips get a separate deduction of up to $25,000 in jobs where tipping is customary.

These deductions lower your federal tax when you file. You can also have them lower your withholding now by including them in Step 4(b) of your W-4, and the calculator’s More W-4 options has the same field.

Take a worker on $20 an hour who averages five overtime hours a week. Their weekly gross is $950. The overtime premium is $10 an hour, which adds up to $2,600 over a year. Entering $2,600 in Step 4(b) cuts federal withholding from $72.08 to $66.08 a week, which is $312 more in their pocket over the year. Indiana and county tax do not change in the calculator, because this is a federal deduction.

A worked example: $60,000 in Marion County

A single worker earns $60,000 a year, is paid every two weeks, lives in Marion County, claims one WH-4 personal exemption and has no deductions. This is what the Indiana paycheck calculator shows:

This worker keeps about 79.1% of gross pay. Indiana’s state and county taxes together take $112.78 a paycheck, less than Social Security alone.

An hourly worker at $20 an hour for 40 hours, paid weekly, grosses $800 and takes home $645.92 a week in Marion County. Indiana’s minimum wage is $7.25 an hour, the same as the federal rate.

Pre-tax deductions and your take-home pay

Contributions to a traditional 401(k) or 403(b) come out before federal, state and county income tax, so they cost less than they look.

In the Marion County example, putting 5% into a 401(k) takes $115.38 from each paycheck. Take-home pay falls by only $95.80, to $1,729.49. The $19.58 difference is tax you no longer pay: $13.85 federal, $3.40 state and $2.33 county. Social Security and Medicare do not change, because 401(k) money is still subject to FICA.

Health, dental and vision premiums, plus HSA and FSA contributions made through a Section 125 plan, also skip FICA, so each dollar saves a little more. Enter them under Pre-tax benefits. If you are deciding on a dental plan, the dental insurance cost estimator shows what a plan pays and what you pay.

If you are building savings out of each paycheck, the CoastFIRE calculator shows when your investments could fund retirement without further contributions.

Why your paycheck may not match this estimate

• An old W-4 on file. Forms from before 2020 use allowances, which this calculator does not model. A new 2026 W-4 fixes that.
• Your county changed. The January 1 rule means a move can leave your employer using a different county from the one you expect.
• Bonuses and commissions. Employers often withhold on extra pay at a flat rate, separately from your regular pay.
• Partly taxable benefits. Some benefits come out partly after tax. Your pay stub shows which.

What the calculator assumes

• A full year at the same pay. This Indiana paycheck calculator estimates withholding for a full year at the pay you enter. A mid-year start, a raise or a bonus changes the real numbers.
• FICA limits are averaged. Payroll stops Social Security at $184,500 and starts the extra 0.9% Medicare above $200,000. The calculator spreads both evenly across your paychecks.
• Withholding, not your tax bill. Your Indiana return can include credits and deductions that withholding ignores, so your refund or balance due can differ.
• Section 125 benefits are fully pre-tax. Check your pay stub if you are unsure.

Working in Maryland instead? The Maryland paycheck calculator handles Maryland’s graduated state tax and 24 local rates. To count working days between paydays, try the business days calculator, and for a receipt, the reverse sales tax calculator finds the price before tax.

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The calculator runs in JavaScript on your own device. Your pay, county and deductions are never uploaded, never saved and never added to the page address. Close the tab and they are gone.