Indiana taxes wages at a flat 2.95% state rate in 2026 — the same rate whatever you earn — on top of federal income tax and FICA. Use the calculators below to see your exact 2026 take-home pay in Indiana, check the sales tax on a purchase, and estimate a mortgage payment with Indiana property taxes factored in.
State Paycheck Calculator 2026
Estimate take-home pay after federal tax, FICA and your state’s income tax for the 2026 tax year.
How it works: the 2026 federal standard deduction ($16,100 single, $32,200 married filing jointly) comes off your salary first, then the 2026 federal brackets (10%–37%). FICA is applied properly: 6.2% Social Security on the first $184,500 of wages (2026 wage base), 1.45% Medicare on all wages, plus 0.9% additional Medicare on wages above $200,000 single / $250,000 married filing jointly. State tax applies each state’s own standard deduction/exemptions, then its brackets or flat rate. Local income taxes are not included — many cities and counties (e.g. New York City, Philadelphia, most of Ohio, Maryland counties, Indiana counties, Kentucky) levy their own payroll taxes on top of the state tax.
Indiana sales tax calculator
The statewide base sales tax rate in Indiana is 7% in 2026. Cities and counties can add their own local tax on top of the base rate — enter any local add-on below to see the full tax and total price.
Sales Tax Calculator 2026
Estimate the sales tax and total price using each state’s base rate (2026), plus any local add-on.
State base rates are the 2026 state-level rates (local add-ons excluded). Actual combined rates vary widely by city and county — many localities add 1–5%. Five states have no statewide sales tax (Alaska, Delaware, Montana, New Hampshire, Oregon), though some localities still levy local taxes.
Mortgage calculator for Indiana homes
The average effective property tax rate in Indiana is about 0.74% of a home’s value per year. When you use the mortgage calculator below, enter roughly that percentage of the home price in the yearly property tax field for a realistic Indiana monthly payment.
Mortgage Payment Calculator
Work out your monthly principal & interest payment, total interest and the true total cost of your loan.
How it works: your loan amount (price minus down payment) is repaid in equal monthly instalments using the standard amortisation formula, so early payments are mostly interest and later ones mostly principal. Property tax and insurance, if entered, are simply spread evenly across each month. Your actual rate and payment will depend on your lender, credit profile and the deal you choose.
2.95% — Indiana’s state rate is one of the lowest flat rates in the country, and it’s dropping to 2.90% in 2027. Sounds like the whole story. It isn’t. Every single Indiana county adds its own income tax on top, and until you know your county’s rate, you don’t actually know what Indiana will take from your paycheck.
Income tax in Indiana in 2026
At state level, Indiana charges a flat 2.95%, down from 3.00% in 2025. A further cut to 2.90% is scheduled for 2027. The direction of travel is clear, and it’s down.
Indiana keeps the base broad, though. There’s no standard deduction at all, and the personal exemption is just $1,000. So the low rate applies to nearly all of your pay. On paper that looks harsh — in practice, 2.95% of almost everything still comes out lower than 5% of most things, as the example below shows.
Now the quirk that defines Indiana, and it deserves saying plainly. Every Indiana county levies its own county income tax on top of the state rate. The average is around 0.35% of income, but some counties charge over 2%. That means the state-only figure from this calculator — and from the worked example below — understates the real deduction from an Indiana paycheck. Your actual take-home will be lower once your county’s tax is withheld. Budget on the county-inclusive figure, not the headline.
Worked example: $75,000 salary, single filer
Step 1 — taxable income. No standard deduction, just the $1,000 personal exemption. State taxable income is $74,000.
Step 2 — state tax. At a flat 2.95%, the state tax is $2,183.00, an effective rate of 2.91%. Remember: this is state tax only. Your county tax comes on top of it.
Step 3 — federal tax. Federal income tax is $7,670.00, after the federal standard deduction of $16,100.
Step 4 — FICA. Payroll taxes total $5,737.50: $4,650.00 for Social Security and $1,087.50 for Medicare.
Step 5 — take-home. $75,000 minus $2,183.00, $7,670.00 and $5,737.50 gives $59,409.50 a year, about $2,284.98 every two weeks — before county income tax is taken off.
Sales tax in Indiana
Refreshingly simple. The rate is 7.00% statewide, which is $70 on a $1,000 purchase, and there are no local add-ons. None.
That uniformity is rare. In Georgia or Illinois, your sales tax depends on your county or city. In Indiana, a $1,000 purchase costs the same in tax in Indianapolis as it does in a small town two hours away. 7% isn’t the lowest rate in America, but at least you always know what it is.
Property tax in Indiana
The average effective rate is 0.74%, a statewide average, so a $300,000 home costs about $2,220 a year. Middle of the national pack — close to Georgia and Florida, far below Illinois next door.
Indiana also caps the damage. Property tax bills are capped at 1% of value for homesteads, so the tax on your main home can’t climb past that ceiling no matter how local rates move. For homeowners used to uncapped bills in other states, that ceiling is a real piece of certainty — you can put a worst-case number on the bill before you buy.
Frequently asked questions
How much is Indiana county income tax?
It varies by county — that’s the whole problem. The average is around 0.35% of income, but some counties charge over 2%, and every county charges something. Check your county’s rate to get your true paycheck figure.
Why doesn’t the calculator’s Indiana figure match my payslip?
Because the calculator shows state tax only: $2,183.00 on $75,000 in the example above. Your employer also withholds county income tax, so your real deduction is higher and your take-home lower.
Is Indiana’s rate falling again?
Yes. It’s 2.95% for 2026, down from 3.00% in 2025, and 2.90% is scheduled for 2027.
Does Indiana have a standard deduction?
No. Just a $1,000 personal exemption. The low 2.95% rate applies to almost your entire salary.
What is Indiana’s property tax cap?
For homesteads — your main home — bills are capped at 1% of the property’s value. At the average 0.74% rate, most owners sit below the cap, but it limits how high a bill can go.
Start with the paycheck calculator on this page, add your county’s rate for the honest number, then try the sales tax and mortgage calculators to round out your Indiana budget.
This calculator is for guidance only and isn’t financial advice.