Indiana payroll taxes

Indiana state income tax: Flat state rate (about ~3% in recent years). Employers use your WH-4 for Indiana withholding elections.
Local income tax (county): Most Indiana counties impose a Local Income Tax (LIT) on residents and/or work-in-county wages. Rates vary by county.
FICA (federal): Social Security and Medicare; see the “Indiana Federal Insurance Contributions Act (FICA)” section below.
Federal income tax (FIT): Withheld using IRS rules based on your Form W-4.
State Unemployment Insurance (SUI): Employer-paid only; employees do not pay Indiana UI from wages.
Pre-tax deductions: Traditional 401(k), HSA/FSA, and Section 125 premiums may reduce taxable wages (FIT/state and sometimes FICA).
Post-tax deductions: Roth 401(k), garnishments, union dues, and other after-tax items reduce take-home after taxes.

How Your Indiana Paycheck Works

Start with gross pay (salary per period or hourly rate × hours; include overtime where due).
Subtract pre-tax items (401(k), HSA/FSA, cafeteria plans) to find taxable wages.
Compute FICA (Social Security to the annual wage base; Medicare on all wages; Additional Medicare for high earners).
Calculate federal withholding with IRS methods using your W-4.
Calculate Indiana state withholding (flat rate) using your WH-4.
Apply applicable county LIT based on residence/work county rules.
Employer separately pays Indiana SUI—this does not reduce your net pay.
Subtract post-tax deductions to reach net pay.

Indiana unemployment insurance (SUI) — 10-year employer snapshot

Employees do not pay Indiana UI. Employers contribute on the taxable wage base at experience or new-employer rates.

Year	Employee UI Rate	Employee Pays?	Employer Taxable Wage Base	New Employer Rate (typ.)	Experienced Rate Range (approx.)
2016	0%	No	$9,500	~2.5%	~0.5%–7.4%
2017	0%	No	$9,500	~2.5%	~0.5%–7.4%
2018	0%	No	$9,500	~2.5%	~0.5%–7.4%
2019	0%	No	$9,500	~2.5%	~0.5%–7.4%
2020	0%	No	$9,500	~2.5%	~0.5%–7.4%
2021	0%	No	$9,500	~2.5%	~0.5%–7.4%
2022	0%	No	$9,500	~2.5%	~0.5%–7.4%
2023	0%	No	$9,500	~2.5%	~0.5%–7.4%
2024	0%	No	$9,500	~2.5%	~0.5%–7.4%
2025	0%	No	$9,500	~2.5%	~0.5%–7.4%

Indiana salary threshold

Indiana follows federal FLSA rules. To classify as exempt (executive, administrative, professional), an employee must meet the current federal salary threshold and the applicable duties tests. If either is not met, overtime is generally owed after 40 hours in a workweek.

Median Household Income — Indiana (10 years, current dollars)

Nominal values to illustrate trend; consult the latest ACS release for official figures.

Year	Median Household Income
2015	$51,900
2016	$54,000
2017	$56,300
2018	$57,800
2019	$61,000
2020	$60,500
2021	$64,100
2022	$68,400
2023	$71,900
2024	$73,600

Indiana Federal Insurance Contributions Act (FICA)

Social Security: 6.2% employee + 6.2% employer, up to the federal wage base.
Medicare: 1.45% employee + 1.45% employer on all wages.
Additional Medicare: 0.9% employee-only on wages above $200,000 (employer remains 1.45%).

Number of cities that have local income taxes

Indiana uses county Local Income Taxes (LIT) rather than city wage taxes. Most counties assess a percentage on residents’ income and/or on wages earned in the county. Employers must withhold the resident and/or work-county rate. Always confirm your home and work counties to ensure the correct LIT is applied.

Local income tax table (examples)

County (example)	Approx. LIT Rate	Notes
Marion (Indianapolis)	~2.0%	Resident & work-county rules apply
Hamilton	~1.1%	Common suburban resident rate
Allen (Fort Wayne)	~1.5%	Resident & non-resident rates may differ
Lake	~1.5%	Check annual DOR county chart
Monroe (Bloomington)	~1.35%	Verify current ordinance

Indiana Wage and Hour Laws: Overtime, Pay Frequency

Overtime: Indiana relies on the FLSA—most non-exempt employees earn 1.5× after 40 hours/week (no statewide daily overtime rule).
Minimum wage: Follows the federal minimum $7.25/hour for most covered employers (some local contracts/positions may differ).
Pay frequency: Employers must set regular, posted paydays; biweekly or semi-monthly is common. Final-pay deadlines apply at separation.
Breaks/meals: Federal standards apply broadly; additional rules may apply to minors and certain industries.

Additional Indiana forms

WH-4 — Employee’s Indiana Withholding Exemption form.
INTIME / WH-1 & WH-3 — Employer withholding returns and annual reconciliation/W-2 filing.
Employer UI registration & rate notice — Department of Workforce Development account and rate assignment.
New Hire Reporting — Report within the required timeframe.
Required workplace posters — Minimum wage, equal employment, unemployment, and federal notices.

FAQs — Indiana Salary Paycheck Calculator

How do I use an Indiana Salary Paycheck Calculator to estimate net pay?

Enter gross pay and pay frequency, your federal W-4 and Indiana WH-4 elections, pre-tax benefits (401(k), HSA/FSA), and post-tax deductions. The calculator applies FICA, federal withholding, Indiana’s flat state tax, and your county’s LIT to estimate per-paycheck and annual take-home.

What state income tax rate does Indiana use?

Indiana uses a single flat income tax rate (around the low-3% range in recent years). Your exact withholding also reflects WH-4 elections and any pre-tax deductions.

How do county Local Income Taxes (LIT) affect my paycheck?

Indiana withholds county LIT based on where you live (resident county) and sometimes where you work. Rates differ by county. Make sure your employer has your correct resident county on file so withholding is accurate.

Do Indiana employees pay unemployment tax from wages?

No. Indiana UI is an employer-paid contribution. Employees do not have a state UI line item on pay stubs, though employer costs depend on the wage base and assigned rate.

What salary makes me exempt from overtime in Indiana?

Indiana follows the federal FLSA rules. Exempt status requires meeting the current federal salary threshold and the relevant duties tests. If those are not satisfied, overtime is due after 40 hours in a week.

How often must I be paid in Indiana?

Employers must set regular paydays and pay on time. Biweekly and semi-monthly schedules are typical. Final-pay timing depends on the separation scenario and employer policy.

How are bonuses and commissions taxed on an Indiana paycheck?

They’re subject to federal withholding (IRS supplemental methods), FICA, Indiana’s flat state tax, and county LIT. Employer UI continues until the employer’s wage base is met—this is an employer expense and doesn’t reduce your net.

Which form changes my Indiana state withholding?

Use WH-4 to set or update your Indiana withholding elections—especially after life events (marriage, dependents) or when optimizing withholding for multiple jobs.

Why is my coworker’s take-home different even at the same salary?

Different W-4/WH-4 elections, county LIT rates, pre-tax benefits, Roth vs. traditional contributions, supplemental wage methods, and garnishments can all change taxable wages and withholding—leading to different net pay.

Does the calculator handle HSA/FSA and 401(k) pre-tax deductions?

Yes. Enter those amounts; they lower taxable wages for FIT/state and sometimes FICA, which generally increases your take-home compared with taking the same deductions after tax.

Indiana Salary Paycheck Calculator