Indiana paycheck calculator 2026
Indiana withholds a flat 2.95% state income tax for 2026 plus a county income tax that every one of the 92 counties levies, at rates from 0.5% to 3%.
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Federal tax on a bonus paid on its own check is a flat 22% (37% above $1M of bonuses in the year). Your W-4 doesn't change it.
Per paycheck. Calculating from gross pay → other amounts
No state income tax on wages here.
More W-4, deductions and employer settings
- Standard deduction $16,100 single, $32,200 married jointly, $24,150 head of household
- Social Security 6.2% up to $184,500 · Medicare 1.45% (+0.9% over $200,000)
- FUTA 0.6% on the first $7,000 · bonus withholding 22%
- 401(k) limit $24,500 ($32,500 at 50+, $35,750 at 60–63)
Paycheck breakdown
Employer taxes (on top of gross pay)
Where the employer's money goes
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Indiana payroll taxes and rules for 2026
Indiana withholds a flat 2.95% state income tax for 2026 plus a county income tax that every one of the 92 counties levies, at rates from 0.5% to 3%. Both are taken from wages after deductions of $1,000 per personal exemption, $1,500 per dependent and $3,000 per adopted child claimed on Form WH-4. There are no employee-paid state disability or leave programs.
- Income tax
- 2.95% flat, plus county tax · Employee form: WH-4
- Personal exemptions (employee, spouse, age 65 or older, blind) are $1,000 a year each. Additional and first-time dependents are $1,500 each, adopted children $3,000 each.
- County tax is based on the county where the employee lived on January 1. If they lived outside Indiana that day, use the county where they mainly worked on January 1.
- Traditional 401(k) deferrals and Section 125 deductions are excluded from Indiana wages, as they are federally.
- For bonuses and other one-time payments, withhold without exemptions.
- Employee deductions
- County income tax: 0.5% (Porter) to 3% (Randolph), Marion County 2.02% Rates from Departmental Notice #1 effective October 1, 2026. Withheld on the same taxable wages as state tax.
- Employer taxes
- State unemployment insurance: 2.5% for most new employers on the first $9,500 of wages Rates run from 0.5% to 7.4% for employers in good standing, 9.4% for delinquent employers. New employers keep 2.5% for their first four calendar years.
- Local taxes
- Every Indiana county levies a local income tax collected through state withholding. The rate follows the employee's county of residence on January 1, or the county of principal work for someone who lived out of state that day. Rates are published in Departmental Notice #1 and can change during the year.
- Bonuses
- One-time or non-periodic payments such as a bonus check are withheld without exemptions: 2.95% state plus the county rate on the full amount.
- Minimum wage 2026
- $7.25/hour Indiana's minimum wage law covers employers with 2 or more employees and matches the federal rate.
- Pay frequency
- At least biweekly or semimonthly.
- Final paycheck
- Indiana law sets the deadline for wages of a separated employee. Check the Indiana Department of Labor for the current rule.
- New-hire reporting
- Within 20 days of the hire date.
- Reciprocity
- Kentucky, Michigan, Ohio, Pennsylvania and Wisconsin have reciprocity with Indiana for wages. County tax for these employees follows the county rules in Departmental Notice #1.
Checked against official sources on October 5, 2026:
- Indiana Department of Revenue, Departmental Notice #1 effective Oct. 1, 2026
- Indiana DWD, Rate Computation
- Indiana DWD, New Employer Premium Rate
- U.S. Department of Labor, State Minimum Wage Laws
- U.S. Department of Labor, State Payday Requirements
- HHS Office of Child Support Services, State New Hire Reporting requirements
Take-home pay in Indiana by salary
| Salary | Federal tax | FICA | Indiana taxes | Take-home / year | Per paycheck | Employer cost |
|---|---|---|---|---|---|---|
| $40,000 | $2,620 | $3,060 | $1,938 | $32,382 | $1,245 | $43,340 |
| $60,000 | $5,020 | $4,590 | $2,932 | $47,458 | $1,825 | $64,869 |
| $80,000 | $8,770 | $6,120 | $3,926 | $61,184 | $2,353 | $86,400 |
| $100,000 | $13,170 | $7,650 | $4,920 | $74,260 | $2,856 | $107,929 |
| $150,000 | $24,734 | $11,475 | $7,405 | $106,386 | $4,092 | $161,755 |
Single filer, paid every two weeks, 2026 W-4 with no adjustments, default Indiana withholding settings, no 401(k) or benefits, new-employer unemployment rate. Indiana taxes include state income tax and employee-paid state programs; local taxes are not included unless the default setting includes them.
How the federal part works, step by step: the 2026 paycheck guide · Illinois · Iowa
Indiana paycheck questions
Which county rate do I withhold?
The county where the employee lived on January 1, 2026. If they lived outside Indiana on January 1 but mainly worked in an Indiana county, use that county. Moving later in the year does not change the county until next January 1.
What is the Indiana state rate for 2026?
2.95% of taxable wages, per Departmental Notice #1.
How do I withhold on a bonus in Indiana?
For one-time payments, Departmental Notice #1 says to compute withholding without exemptions. That is 2.95% state plus the county rate on the whole bonus.
How much is $60,000 a year after taxes in Indiana?
About $47,458 a year, or $1,825 every two weeks, for a single filer with no other W-4 adjustments in 2026. Federal income tax is $5,020, Social Security and Medicare $4,590, and Indiana taxes and payroll deductions $2,932.
What does a $60,000 employee cost an employer in Indiana?
$64,869 a year before benefits: the salary plus the 7.65% FICA match, federal unemployment (FUTA) and Indiana unemployment insurance at the new-employer rate of 2.5% on the first $9,500.
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