Indiana Paycheck Calculator
Estimate Indiana take-home pay fast. Enter salary or hourly details, contributions, frequency, and deductions to instantly view clear results today.
Indiana Income Tax Rate
Indiana uses a statewide flat income tax that has gradually decreased in recent years. Employers start with gross wages and subtract eligible pre-tax benefits—traditional 401(k), Section 125 health premiums, HSA/FSA, and commuter plans—to find taxable wages. Then payroll calculates federal withholding, FICA, and Indiana withholding using your WH-4 elections and pay frequency. Bonuses and commissions follow federal supplemental methods (percentage or aggregate). Indiana also has county-level income taxes that apply in addition to the state rate, but there are no employee-paid city wage taxes. The table shows the state flat rate trend; your effective rate is typically lower after deductions, credits, and pre-tax benefits.
| Year | Flat Rate |
|---|---|
| 2016 | 3.30% |
| 2017 | 3.23% |
| 2018 | 3.23% |
| 2019 | 3.23% |
| 2020 | 3.23% |
| 2021 | 3.23% |
| 2022 | 3.23% |
| 2023 | 3.15% |
| 2024 | 3.05% |
| 2025 | 3.00% (scheduled) |
Indiana Median Household Income
Indiana’s median household income has steadily increased, supported by growth in manufacturing, logistics, life sciences, healthcare, tech, education, and professional services. Pandemic-era volatility briefly slowed momentum, then nominal gains resumed across Indianapolis, Fort Wayne, South Bend–Mishawaka, Bloomington, Evansville, and Lafayette/West Lafayette. The figures below are nominal, directional benchmarks to guide budgeting and compensation comparisons. For purchasing power, compare “real” (inflation-adjusted) dollars and weigh local costs—housing, transportation, childcare, and insurance differ substantially between urban, suburban, and rural counties. Household size and employer-provided benefits (health coverage, retirement match) meaningfully affect take-home value statewide.
| Year | Income |
|---|---|
| 2016 | $52,300 |
| 2017 | $54,100 |
| 2018 | $56,300 |
| 2019 | $58,200 |
| 2020 | $60,200 |
| 2021 | $62,700 |
| 2022 | $65,000 |
| 2023 | $67,400 |
| 2024 | $68,900 |
| 2025 | $70,000 (prelim.) |
Indiana Federal Insurance Contributions Act (FICA)
FICA applies uniformly in Indiana. Employees pay 6.2% Social Security on wages up to the federal wage base (employers match) and 1.45% Medicare on all wages (also matched). High earners owe an additional 0.9% Medicare surtax above federal thresholds, which employers do not match. Section 125 health premiums usually reduce both income-tax and FICA wages, while traditional 401(k) reduces income-tax wages but not FICA. Indiana pay stubs typically show Social Security, Medicare, federal tax, state tax, county tax, pre-/post-tax deductions, and year-to-date totals to help verify accuracy each period.
Indiana Number of Cities with Local Income Taxes
Indiana does not impose city wage income taxes on employees; however, counties levy Local Income Taxes (LIT) that vary by county of residence/work. The sample below illustrates common ranges; confirm your specific county rate.
| County | Approx. LIT Rate |
|---|---|
| Marion (Indianapolis) | ≈2.02% |
| Hamilton | ≈1.10% |
| Allen | ≈1.48% |
| Lake | ≈1.50% |
| St. Joseph | ≈1.75% |
| Tippecanoe | ≈1.28% |
| Monroe | ≈1.35% |
| Vanderburgh | ≈1.25% |
How Your Indiana Paycheck Works
Your paycheck begins with gross wages for the period. Payroll subtracts pre-tax benefits—traditional 401(k), HSA/FSA, Section 125 health premiums, and eligible commuter benefits—to reach taxable wages. Withholding then includes federal income tax (per W-4), FICA (Social Security and Medicare), Indiana state income tax (WH-4), and county Local Income Tax based on residence/work location. Post-tax deductions—Roth 401(k), garnishments, union dues, and charitable gifts—come after taxes and do not reduce taxable wages. Pay frequency (weekly, biweekly, semimonthly, monthly) changes cash-flow timing but not your annual tax liability.
Indiana Wage and Hour Laws: Overtime, Pay Frequency
Overtime: Indiana follows FLSA standards—most non-exempt employees earn 1.5× their regular rate for hours worked over
40 in a workweek; exemptions apply where duties and salary thresholds are met.
Pay frequency: Employers must set regular paydays and pay consistently; semimonthly or biweekly schedules are common. State rules include
timely final pay and itemized wage statement requirements—review employer policy and any applicable agreements for specifics.
FAQs
How do I use the Indiana Paycheck Calculator?
Enter gross pay, pay schedule, W-4/WH-4 details, pre-tax benefits, and post-tax deductions to estimate federal, FICA, state, and county withholding.
What is Indiana’s current state income tax rate?
Indiana uses a flat rate that has been stepping down (see the 10-year table); county LIT applies in addition.
Do Indiana cities tax wages?
No. Cities don’t levy wage taxes on employees; counties assess Local Income Taxes instead.
Why is there a county tax on my paycheck?
Indiana’s LIT is based on your county of residence/work and is withheld along with state income tax.
Do 401(k) and HSA contributions reduce Indiana taxes?
Yes—both reduce income-tax wages for federal and state; traditional 401(k) does not reduce FICA, many health premiums do.
How are bonuses withheld in Indiana?
Employers may use percentage or aggregate federal methods; Indiana state and county withholding applies to supplemental wages.
What appears on an Indiana pay stub?
Lines for federal tax, Social Security, Medicare, Indiana state tax, county LIT, pre-/post-tax deductions, YTD totals, and net pay.
How often must I be paid in Indiana?
Employers must pay on regular, published paydays—commonly semimonthly or biweekly—subject to wage-payment timing rules.
Are tips taxable in Indiana?
Yes. Reported tips are subject to federal income tax, FICA, Indiana state tax, and applicable county LIT.