Free Indiana Tax Calculator

Indiana charges a flat 3.05% income tax rate for 2026. That's one of the lower flat rates in the country — cheaper than Illinois (4.95%), Michigan (4.25%), and significantly cheaper than most progressive-tax states. The state uses a $1,000 personal exemption per person, and counties can add their own income tax on top (ranging from about 0.5% to 3.38%).

On a $75,000 salary with the state rate only, you'd pay about $2,254 in state income tax. But if you live in Marion County (Indianapolis), add roughly another $1,775 in county tax. That county tax is a big deal — it can push your effective Indiana rate from 3.05% to over 5% depending on where you live.

On top of state and county tax, you've got federal progressive brackets with the standard deduction, plus FICA at 7.65% combined. 401(k) contributions reduce taxable income at both the federal and state level.

Indiana doesn't tax Social Security benefits. Property taxes are reasonable at about 0.85% average effective rate. Combined sales tax is 7%, which is moderate. For a Midwestern state, Indiana's overall tax burden is competitive, especially if you're in a lower-tax county. Compare IN to other states.

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