Indiana Tax Brackets 2026
Indiana uses a single flat income tax rate of 2.95% for 2026. It applies to your taxable income after the state's deductions and exemptions, the same rate at every income level.
| Flat rate on taxable income (all filing statuses) | 2.95% |
Indiana also allows a personal exemption (deducted from income) of $1,000 for single filers.
Indiana county income tax is universal - every one of the 92 counties levies it, based on the taxpayer's county of residence as of Jan 1 (work county if residing out of state). 2026 county rates range from ~0.5% to ~3.38% and apply to the same taxable income as the state tax. This is a real, always-applicable local tax and materially affects Indiana take-home.
See what these rates leave of an actual salary: Indiana paycheck calculator.
Frequently asked questions
What is the top income tax rate in Indiana?
For 2026, the top income tax rate in Indiana is a flat 2.95%. Graduated states apply that top rate only to income above the final threshold, not to your whole salary.
How do Indiana taxes compare with other states?
The clearest comparison is take-home pay on the same salary across states. Use the take-home pages to see how Indiana stacks up against a no-income-tax state and its neighbors.
Federal: IRS 2026 brackets (Rev. Proc. 2025-32) · FICA: IRS Topic 751 · Wage base: SSA · Indiana: Indiana Department of Revenue. Rates current as of July 16, 2026. Annual-liability estimates, not payroll withholding — see methodology.