A Indiana paycheck has federal income tax, Social Security (6.2% up to the 2026 wage base of $184,500), and Medicare (1.45%), plus a flat 3.05% Indiana state income tax, and local income tax in some cities. On a $65,000 single-filer salary, estimated Indiana take-home is about $52,425 a year, or $2,016 per biweekly paycheck.
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.
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.
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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.