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Indiana Paycheck Guide

Indiana uses a flat state income tax. Everyone pays the same percentage on taxable wages, regardless of income.

PI
Reviewed by PayslipIQ Editorial Team, in-house payroll editor
Last reviewed May 2026 · Editorial standards on methodology

PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, accounting, employment, benefits, or payroll advice. PayslipIQ is not a CPA firm, law firm, financial advisor, payroll provider, or tax authority. Always verify your paycheck, deductions, withholdings, and tax position with your employer's payroll department, a qualified CPA, the IRS, your state tax authority, or another appropriately qualified professional. Calculations are estimates; your actual paycheck may differ based on factors specific to your employer, location, benefits elections, and personal tax situation.

Indiana: the local picture

Indiana runs a flat 3.05% state income tax. Every Indiana county also levies a local income tax (LIT) ranging from about 0.5% to 3.0%, withheld based on county of residence on January 1 of the year.

Indiana Paycheck Calculator

Estimate take-home pay for Indiana.

Indiana State Tax

Indiana tax structure and rates.

Indiana Overtime

Federal FLSA applies.

Indiana Pay Stub Laws

Employer pay stub requirements in Indiana.

How a Indiana paycheck is built

Every Indiana worker pays federal income tax, calculated on the W-4 you submitted to your employer using the IRS Publication 15-T tables. Federal income tax is followed by FICA: 6.2 percent Social Security up to the annual wage base, plus 1.45 percent Medicare on every dollar. The 0.9 percent Additional Medicare Tax applies once year-to-date wages cross $200,000 single or $250,000 married filing jointly.

Indiana adds a flat state income tax of approximately 3.05 percent. Verify the current rate with the Indiana Department of Revenue.

Local taxes: Indiana has cities or counties that levy local income tax on top of state tax. Common examples are noted on the local-tax page.

What changed recently in Indiana

  • State rate cut from 3.15% to 3.05% in 2024, scheduled to drop further.
  • LIT rates adjusted by counties annually.

Indiana payroll quirks workers should know

  • LIT line on every Indiana paycheck.
  • Determined by county of residence on Jan 1, NOT by where you work.
  • WH-4 form for state withholding includes a county code.

Example breakdown

A hypothetical Indiana worker on a $65,000 annual salary, paid bi-weekly, single filer, no extra adjustments. Educational only, your real paycheck differs.

Gross (bi-weekly)$2500.00
Federal income tax-$250.00
Social Security (6.2%)-$155.00
Medicare (1.45%)-$36.25
Indiana state tax-$76.25
Estimated take-home$1982.50

Run your own numbers in the Indiana paycheck calculator.

Authoritative sources

Frequently asked questions

Does Indiana have state income tax?
Yes. Indiana uses a flat state income tax rate. Verify the current rate with the Indiana Department of Revenue.
Are there local income taxes in Indiana?
Yes. Indiana has cities or counties that add local income tax on top of state tax. Check your specific city.
Does Indiana have State Disability Insurance or Paid Family Leave premiums?
No. Indiana does not have state-mandated SDI or PFL employee premiums.
Does Indiana have daily-overtime rules?
No. Indiana follows federal FLSA: 1.5x for hours above 40 in a workweek.
What is FICA on a Indiana paycheck?
FICA is federal: 6.2 percent Social Security up to the annual wage base, plus 1.45 percent Medicare on every dollar. The 0.9 percent Additional Medicare Tax applies above $200,000 single or $250,000 married filing jointly. FICA applies in every state.
Where do I verify Indiana state tax withholding?
The Indiana Department of Revenue (https://www.in.gov/dor/) is the authoritative source. For your specific paycheck, contact your employer's payroll team or a CPA.
What is the LIT on my Indiana paycheck?
Local income tax. Every Indiana county levies one, ranging roughly 0.5% to 3.0%. Withheld based on the county you lived in on January 1 of the tax year.
I moved counties in February. Does my LIT change?
Not for the current tax year. Indiana LIT is set by your county of residence on January 1. The change applies the following year.