County rate source: Departmental Notice #1 (DN01), Indiana Department of Revenue, effective January 1, 2026
Federal source: IRS Revenue Procedure 2025-32 (2026 tax year inflation adjustments)
FICA source: Social Security Administration — 2026 wage base $184,500 (announced Oct. 24, 2025)
Last verified: August 2026
Written by Shyraz Habib, AKCalc founder. Fact-checked: August 2026.
Indiana DOR — Departmental Notice #1 (official county rate PDF) | Indiana Department of Revenue
Enter your details below to see your exact take-home pay after federal, state, AND county tax. County rates are sourced directly from Indiana DOR Departmental Notice #1, effective January 1, 2026.
This calculator provides an informational estimate based on published rules and rates for Indiana as of August 2026. It does not constitute tax, legal, or financial advice. Individual circumstances — including personal exemptions, deductions, and special situations — may produce different results. For decisions involving tax obligations, payroll processing, or financial planning, consult a qualified professional licensed in your jurisdiction.
Indiana residents pay county tax based on where they LIVE on January 1, not where they work.
If you live in Marion County but work in Hamilton County, you pay Marion County's rate (2.02%), not Hamilton's (1.10%). Your rate is fixed for the entire year, even if you move.
Nonresidents: If you lived outside Indiana on January 1 but your principal place of work is in an Indiana county on January 1, you pay county tax based on that work county.
Source: Indiana Department of Revenue — Departmental Notice #1 (DN01), effective January 1, 2026
Pre-calculated examples for common salaries. All numbers reflect 2026 rates: state 2.95%, federal brackets and standard deductions per IRS Rev. Proc. 2025-32, SS wage base $184,500, single filing status, no pre-tax deductions.
| Annual salary | County | County rate | State tax | County tax | Federal tax | FICA | Total deductions | Net annual | Net biweekly |
|---|---|---|---|---|---|---|---|---|---|
| $50,000 | Marion | 2.02% | $1,475 | $1,010 | $3,820 | $3,825 | $10,130 | $39,870 | $1,534 |
| $50,000 | Hamilton | 1.10% | $1,475 | $550 | $3,820 | $3,825 | $9,670 | $40,330 | $1,551 |
| $50,000 | Randolph | 3.00% | $1,475 | $1,500 | $3,820 | $3,825 | $10,620 | $39,380 | $1,515 |
| $75,000 | Marion | 2.02% | $2,213 | $1,515 | $7,670 | $5,738 | $17,135 | $57,865 | $2,226 |
| $75,000 | Hamilton | 1.10% | $2,213 | $825 | $7,670 | $5,738 | $16,446 | $58,554 | $2,252 |
| $75,000 | Delaware | 1.50% | $2,213 | $1,125 | $7,670 | $5,738 | $16,746 | $58,254 | $2,240 |
| $100,000 | Marion | 2.02% | $2,950 | $2,020 | $13,170 | $7,650 | $25,790 | $74,210 | $2,854 |
| $100,000 | Hamilton | 1.10% | $2,950 | $1,100 | $13,170 | $7,650 | $24,870 | $75,130 | $2,890 |
| $100,000 | Randolph | 3.00% | $2,950 | $3,000 | $13,170 | $7,650 | $26,770 | $73,230 | $2,817 |
| $150,000 | Delaware | 1.50% | $4,425 | $2,250 | $24,734 | $11,475 | $42,884 | $107,116 | $4,120 |
| $150,000 | Marion | 2.02% | $4,425 | $3,030 | $24,734 | $11,475 | $43,664 | $106,336 | $4,090 |
Note: Single filing status, no pre-tax deductions. Federal tax uses 2026 standard deduction $16,100 and brackets per IRS Rev. Proc. 2025-32. Social Security wage base $184,500 (SSA). Your actual take-home may differ based on your deductions and exemptions.
Indiana's income tax landscape shifted for 2026. The state rate dropped from 3.00% to 2.95%, and six counties adjusted their local rates.
Indiana applies a flat income tax rate to all taxable income. For 2026, that rate is 2.95%, down from 3.00% in 2025. This is part of a legislated schedule to reach 2.90% in 2027. For a $50,000 salary, this drop saves you $25 annually. For $100,000, it's a $50 savings.
Social Security is exempt from Indiana state tax. Any Social Security benefits included in your federal AGI are fully deductible on the Indiana return. Military retirement pay is also 100% exempt.
Indiana counties layer their own local income tax on top of the state rate. These rates range from 0.50% (Porter County, lowest) up to 3.00% (Randolph County, highest), per the Indiana DOR DN01 effective January 1, 2026. Combined with the 2.95% state rate, total Indiana tax ranges from 3.45% to 5.95%.
Your county rate depends on where you live on January 1 of the tax year — not where you work. This rate stays fixed for the entire year, even if you move. Nonresidents with a principal Indiana work location on January 1 pay county tax based on that work county.
Always verify your county's current rate at the official Indiana DOR. County rates may be updated January 1 and October 1 each year.
Rates from Indiana DOR Departmental Notice #1, effective January 1, 2026. An asterisk (*) indicates the rate changed since the October 1, 2025 DN01 publication.
| County | 2026 rate | County | 2026 rate |
|---|---|---|---|
| Adams | 1.60% | Marion | 2.02% |
| Allen | 1.59% | Marshall | 1.25% |
| Bartholomew | 1.75% | Martin | 2.50% |
| Benton | 1.79% | Miami | 2.54% |
| Blackford | 2.50% | Monroe | 2.14% |
| Boone | 1.70% | Montgomery | 2.65% |
| Brown | 2.5234% | Morgan | 2.72% |
| Carroll * | 2.4733% | Newton | 1.00% |
| Cass | 2.95% | Noble | 1.75% |
| Clark | 2.00% | Ohio | 2.00% |
| Clay | 2.35% | Orange | 1.75% |
| Clinton | 2.65% | Owen | 2.50% |
| Crawford | 1.65% | Parke | 2.65% |
| Daviess | 1.50% | Perry | 1.40% |
| Dearborn | 1.40% | Pike | 1.20% |
| Decatur | 2.45% | Porter | 0.50% |
| DeKalb | 2.13% | Posey | 1.45% |
| Delaware | 1.50% | Pulaski | 2.85% |
| Dubois | 1.20% | Putnam | 2.30% |
| Elkhart | 2.00% | Randolph | 3.00% |
| Fayette | 2.82% | Ripley | 2.38% |
| Floyd | 1.89% | Rush | 2.15% |
| Fountain | 2.10% | St. Joseph | 1.75% |
| Franklin | 1.70% | Scott | 2.16% |
| Fulton | 2.88% | Shelby * | 1.70% |
| Gibson | 1.30% | Spencer | 0.80% |
| Grant * | 2.75% | Starke | 1.71% |
| Greene * | 2.35% | Steuben | 1.99% |
| Hamilton | 1.10% | Sullivan | 1.70% |
| Hancock | 1.94% | Switzerland | 1.45% |
| Harrison | 1.00% | Tippecanoe | 1.28% |
| Hendricks | 1.70% | Tipton | 2.60% |
| Henry | 2.02% | Union * | 2.75% |
| Howard * | 2.35% | Vanderburgh | 1.25% |
| Huntington | 1.95% | Vermillion | 1.50% |
| Jackson | 2.10% | Vigo | 2.00% |
| Jasper | 2.864% | Wabash | 2.90% |
| Jay | 2.50% | Warren | 2.12% |
| Jefferson | 1.03% | Warrick | 1.00% |
| Jennings | 2.50% | Washington | 2.00% |
| Johnson | 1.40% | Wayne | 1.25% |
| Knox | 1.70% | Wells | 2.10% |
| Kosciusko | 1.00% | White | 2.32% |
| LaGrange | 1.65% | Whitley | 1.6829% |
| Lake | 1.50% | ||
| LaPorte | 1.45% | ||
| Lawrence | 1.75% | ||
| Madison | 2.25% |
Source: Indiana Department of Revenue, Departmental Notice #1 (DN01), effective January 1, 2026. Asterisk (*) = rate changed since Oct. 1, 2025 publication. Verify current rates at in.gov/dor/files/dn01.pdf.
Indiana's county income tax — officially the Local Option Income Tax (LOIT) — is separate from the state's flat 2.95% rate. It's calculated on the same taxable income and withheld by your employer. The key difference: your rate depends on your county of residence, not where you work.
County rates range from 0.50% (Porter County) to 3.00% (Randolph County). Marion County is 2.02%. Six counties changed their rates effective January 1, 2026: Carroll, Grant, Greene, Howard, Shelby, and Union.
County tax = taxable income × county rate. Your taxable income for county tax is your gross pay minus pre-tax deductions like 401(k) and health insurance premiums. Indiana also allows personal exemptions of $1,000 per exemption claimed on Form WH-4 (download from the Indiana DOR), plus $1,500 per qualifying dependent. Federal standard deductions and itemized deductions do not reduce Indiana taxable income.
For example: if you earn $50,000 and contribute $5,000 to your 401(k), your county-taxable income is $45,000 (before personal exemptions). In Marion County (2.02%), your county tax before exemptions is $45,000 × 0.0202 = $909. The calculator applies the gross-minus-pre-tax-deductions base; your actual withholding may differ slightly based on your WH-4 exemptions.
Your county tax rate is determined by your county of residence on January 1 of the tax year and applies to your entire year's income — even if you move to a different county later.
Example: You live in Marion County on January 1, 2026. You pay Marion County's 2.02% rate for all of 2026. If you move to Hamilton County on June 1, you still pay Marion County's rate for the entire year.
If you live outside Indiana on January 1 but your principal place of work is in an Indiana county on January 1, you owe county tax based on that work county — this is the standard nonresident rule per Indiana DOR DN01. A separate 30-day threshold governs employer withholding obligations, but it does not eliminate employee tax liability for workers with an established Indiana work location.
Indiana has reciprocity agreements with five states: Kentucky, Michigan, Ohio, Pennsylvania, and Wisconsin. Residents of these states who work in Indiana are not required to pay Indiana state income tax on wages. Illinois is NOT included in Indiana reciprocity agreements. However, if the employee's principal place of work is in an Indiana county on January 1, county tax rules still apply. Source: 45 IAC 3.1-1-115; Indiana IB #33.
Indiana residents pay tax based on where they live, not where they work. Your employer withholds county tax based on the address you provide on Form WH-4 (Indiana withholding form). If your employer uses the wrong county, you may have the wrong amount withheld.
What to do if your employer uses the wrong county: Update your WH-4 with your correct county of residence. If the issue persists, contact the Indiana Department of Revenue.
Example scenarios:
For Indiana residents: county tax = county of residence on January 1. Not your work county. Not your employer's county. Your January 1 home address is the only thing that matters. For nonresidents with an Indiana principal work location on January 1, that work county determines your rate.
Federal income tax and FICA (Social Security and Medicare) take significant portions of your paycheck. The calculator includes all these deductions automatically.
The federal government uses a progressive tax system with seven brackets. The calculator uses the 2026 brackets and standard deductions from IRS Revenue Procedure 2025-32.
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 | $0 – $17,700 |
| 12% | $12,400 – $50,400 | $24,800 – $100,800 | $17,700 – $67,450 |
| 22% | $50,400 – $105,700 | $100,800 – $211,400 | $67,450 – $105,700 |
| 24% | $105,700 – $201,775 | $211,400 – $403,550 | $105,700 – $201,775 |
| 32% | $201,775 – $256,225 | $403,550 – $512,450 | $201,775 – $256,225 |
| 35% | $256,225 – $640,600 | $512,450 – $768,700 | $256,225 – $640,600 |
| 37% | $640,600+ | $768,700+ | $640,600+ |
The 2026 federal standard deduction is $16,100 for single filers and married filing separately, $32,200 for married filing jointly, and $24,150 for head of household. Source: IRS Revenue Procedure 2025-32. Download a current W-4 from the IRS (PDF). Use the IRS Tax Withholding Estimator to check if your withholdings are on track.
No state disability insurance (SDI) or paid family leave (PFML) in Indiana. Indiana does not withhold SDI or PFML from paychecks. The deductions above are the only mandatory withholdings.
Pre-tax deductions reduce your taxable income for federal, state, AND county taxes.
Example: You earn $50,000 and contribute $5,000 to your 401(k). Your taxable income for state and county tax drops to $45,000. In Marion County (2.02%), this saves $101 in county tax. State tax savings: $147.50. Combined Indiana state and county savings range from approximately $172 (Porter County, 0.50%) to $298 (Randolph County, 3.00%) per $5,000 contribution, plus federal savings at your marginal rate.
Pro tip: Maximizing pre-tax deductions is one of the most effective ways to reduce your tax burden. Every dollar you contribute pre-tax saves you federal, state, and county tax simultaneously.
Click "Compare counties" below the results to see how your net pay changes if you lived in a different county. This is useful when deciding where to live, considering a move, or comparing job offers across county lines.
On a $75,000 salary, living in Hamilton County (1.10%) instead of Marion County (2.02%) saves approximately $690 annually — about $27 per biweekly paycheck. Moving from Randolph County (3.00%) to Porter County (0.50%) on the same salary saves $1,875 annually.
If you move into Indiana during the year, you generally owe tax only on income earned while a resident. Your county rate is still determined by your January 1 address (which was outside Indiana), so you may not owe county tax for that year. Consult a tax professional for your specific situation.
If you live in Indiana but work remotely for an out-of-state employer, you owe Indiana state tax AND county tax based on your Indiana county of residence. Many out-of-state employers do not automatically withhold Indiana tax; you may need to make estimated tax payments.
This calculator is designed for W-2 employees. Self-employed individuals also owe self-employment tax (15.3%) in addition to income tax. The calculator does not include self-employment tax.
Indiana has reciprocity with five states: Kentucky, Michigan, Ohio, Pennsylvania, and Wisconsin. Residents of these states who work in Indiana are generally not required to pay Indiana state income tax on wages. Illinois is NOT included. However, county tax rules based on principal Indiana work location on January 1 may still apply.
Your county rate is fixed on January 1 for the entire year. If you move mid-year, your rate doesn't change until the following January 1.
Check your pay stub and verify the county rate against the table above. If it's wrong, update your WH-4 with your correct county of residence.
Still unsure? The Indiana Department of Revenue publishes Departmental Notice #1 each year with all county rates and withholding rules. You can also consult a tax professional for personalized advice.
| State | State income tax rate | Local/county tax | Total range |
|---|---|---|---|
| Indiana | 2.95% (flat) | 0.50% – 3.00% | 3.45% – 5.95% |
| Illinois | 4.95% (flat) | None statewide | 4.95% |
| Ohio | 2.75% – 3.75% | None statewide | 2.75% – 3.75% |
| Michigan | 4.25% (flat) | None statewide | 4.25% |
| Kentucky | 4.0% (flat) | None statewide | 4.0% |
Indiana's total tax ranges from 3.45% (Porter County) to 5.95% (Randolph County). Indiana's base rate sits below Illinois, Michigan, and Kentucky, though higher-rate counties push combined totals above those states.
Note on Indiana personal exemptions: Indiana uses a personal exemption system ($1,000 per WH-4 exemption) rather than a standard deduction for state and county purposes. This calculator uses gross-minus-pre-tax-deductions as the Indiana taxable base; your employer's actual withholding will also subtract exemption deduction constants from DN01 Tables A, B, and C based on your WH-4 elections. For the most precise result, consult your actual pay stub or a tax professional.
This page was last updated in August 2026. County rates may be updated by Indiana DOR in January and October each year.
Disclaimer: This calculator provides estimates only. Your actual tax liability may differ based on your deductions, exemptions, and individual circumstances. Always consult a qualified tax professional for personalized advice.