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Indiana Tax Brackets

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Every Indiana income tax bracket for 2026, exactly as published — with the standard deduction, the exemption credit, and a tool that finds your bracket and shows the tax slice by slice.

★★★★★ Take-Home Stars — keeps 79.1% of $50k–$100k salaries, ranked against all 51 jurisdictions
For 2026, Indiana taxes income at a single flat rate of 2.95%. There is no standard deduction — tax applies from the first dollar. On $100,000 of taxable income the Indiana tax is $2,950.
Structure
Flat rate
one rate on all taxable income
Top marginal rate
2.95%
from the first taxable dollar
Standard deduction
None
tax from the first dollar
Exemption credit
—
none in Indiana

Indiana income tax brackets, 2026

RateTaxable income overUp toCumulative tax at top of band
2.95%$0and above—

Brackets apply to taxable income — and Indiana has no standard deduction, so that is your gross income. Both tables are printed in full on this page; the tabs only choose which you look at first.

Find your bracket

Enter your Indiana taxable income (after the standard deduction). Your bracket lights up in the table above, and your tax is broken into its slices.

Figure A The bracket staircase

The staircase: each step is one bracket. The tax climbs only inside the step you are standing on — moving into a higher bracket never taxes your earlier income at the higher rate.

Worked examples — tax on taxable income

Taxable income (single)Indiana taxEffective rateTop (marginal) rate
$50,000$1,4752.9%2.95%
$75,000$2,2132.9%2.95%
$100,000$2,9502.9%2.95%
$150,000$4,4252.9%2.95%

What changed for 2026

Rate cut for 2026: the state flat rate fell from 3.00% in 2025 to 2.95% for 2026 under the statutory phasedown, with a further fall to 2.90% scheduled for 2027 (Indiana Code § 6-3-2-1; Indiana Department of Revenue).

Indiana rules that change the answer

The state-specific rules behind the numbers above — the things a generic calculator gets wrong about Indiana.

Every county levies its own income tax — the state rate is only half the story

Indiana's headline 2.95% is only the state layer. All 92 counties add their own Local Income Tax (Indiana Code § 6-3.6), ranging from about 0.5% to 3.0% for 2026, so combined rates run from roughly 3.45% to nearly 6%. Your county is fixed by where you lived on 1 January — moving mid-year does not change it — and employers withhold county tax alongside state tax.

Source: Indiana Department of Revenue — Local Income Tax guidance and county rate schedule; Indiana Code § 6-3.6

No standard deduction — just a $1,000 personal exemption

Indiana does not use the federal standard deduction or federal itemised deductions. Tax starts from federal AGI with Indiana-specific additions and subtractions, and the main relief is a personal exemption of just $1,000 per person (with an additional $1,000 for filers aged 65+). That is far less shelter than neighbouring states offer, which partly offsets Indiana's low headline rate.

Source: Tax Foundation, State Individual Income Tax Rates and Brackets 2026; Indiana Department of Revenue, Information Bulletin 117

Social Security exempt at state AND county level

Social Security and railroad retirement benefits included in federal AGI are fully deducted on the Indiana return, so they escape both the state rate and the county tax. Military retirement pay is also fully exempt. Most other pensions and IRA/401(k) withdrawals remain taxable at 2.95% plus county tax.

Source: Indiana Department of Revenue, Information Bulletin 26

A statutory phasedown, not a one-off cut

The 2.95% rate is one step in a legislated schedule written into Indiana Code § 6-3-2-1: 3.15% in 2023, 3.05% in 2024, 3.00% in 2025, 2.95% in 2026 and 2.90% in 2027, with a possible further trigger-based reduction mechanism from 2030.

Source: Indiana Code § 6-3-2-1; Indiana Department of Revenue rate guidance

Local taxes

Every one of Indiana's 92 counties levies a local income tax on top of the 2.95% state rate — there is no Indiana county without one. County rates for 2026 run from about 0.5% (Porter County) to 3.0% (Randolph County); Marion County (Indianapolis) charges 2.02% and Hamilton County 1.10%. Your rate is set by your county of residence on 1 January and applies for the full year. Tax Foundation puts the average local burden at roughly 0.35% of AGI across taxpayers, but the rate you actually pay depends entirely on your county.

Source: Tax Foundation — State Individual Income Tax Rates and Brackets, 2026

Frequently asked questions

What is Indiana's state income tax rate in 2026?

2.95% flat for the state in 2026 — plus your county's own income tax on top. On a $75,000 salary for a single filer, this page's calculator puts Indiana state tax (before county tax) at $2,183, with net pay of $59,410 after federal tax of $7,670 and FICA of $5,738 (total tax $15,591).

Do all Indiana counties charge an income tax?

Yes — every one of Indiana's 92 counties levies its own local income tax, roughly 0.5% to 3.0% for 2026. Marion County (Indianapolis) is 2.02%, so an Indianapolis resident's combined state-plus-county rate is about 4.97%.

What is the standard deduction in Indiana for 2026?

Indiana has no standard deduction. You reduce federal AGI with Indiana's own adjustments and a $1,000 personal exemption per person instead — which is why Indiana tax starts at a much lower income level than the federal tax does.

Does Indiana tax Social Security benefits?

No. Social Security and railroad retirement benefits are fully deductible from Indiana AGI at both the state and county level. Pensions, IRA and 401(k) withdrawals are taxed, though military retirement pay is fully exempt.

Which county's tax rate do I pay if I move within Indiana during the year?

Your county of residence on 1 January of the tax year sets your county rate for the whole year, even if you move counties in February. Nonresidents working in an Indiana county pay that county's tax on their Indiana income.

Is Indiana's income tax rate still falling?

Yes — Indiana is mid-phasedown. The rate was 3.05% in 2024 and 3.00% in 2025, is 2.95% for 2026, and falls to 2.90% for 2027 under current statute.

Sources & verification. Tax Foundation — State Individual Income Tax Rates and Brackets, 2026 Indiana Department of Revenue — rates, Local Income Tax guidance, Information Bulletins 26 and 117 Indiana Code § 6-3-2-1 and § 6-3.6
2026 figures verified 31 October 2026 against the sources above. This calculator is an estimator for planning, not tax advice; it does not model itemised deductions, most credits, or local taxes except where stated.
Spotted a figure that looks wrong? Report it — accuracy is the whole point of these pages.

Indiana income tax brackets for 2026 in full: every rate and threshold for single and joint filers, no standard deduction, worked examples and a find-your-bracket tool.

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UNDERSTAND YOUR RESULTS

Indiana Tax Brackets 2026 — Every Rate and Threshold in Full guide

Every Indiana income tax bracket for 2026, printed in full exactly as published: single and married-filing-jointly tables, the standard deduction, worked examples on taxable income, and a find-your-bracket tool that lights up your band and builds your tax slice by slice. Rates checked 31 October 2026; all figures are for the 2026 tax year.

How to use this tool

  1. Read the table top to bottom: each row is one band of taxable income — income after the standard deduction — and only the slice inside the band is taxed at its rate.
  2. Use the tabs to switch between the single and married-filing-jointly tables; both are printed in full on the page.
  3. Enter your taxable income in the find-your-bracket tool: your band lights up in the table and the staircase shows your slices.
  4. Check the worked examples to see how a whole income is taxed across several bands, and what changed for 2026 before it.

A worked example

On $100,000 of taxable income in Indiana (single filer, 2026), the slice-by-slice tax is $2,950.00 — the top slice is taxed at 2.95%, but the effective rate on the whole $100,000 is far lower because the early slices are taxed at the bottom rates. A $100,000 salary is not $100,000 of taxable income: the schedule comes off first, which is what the companion income calculator works through.

What you can do with this tool

How it works

Indiana taxes taxable income at a flat 2.95%. Indiana has no standard deduction — tax applies from the first dollar of income. The tables are the state’s official 2026 schedules (sources printed on the page); cumulative tax at the top of each band is computed slice by slice from those rates. The federal comparison figures use IRS Rev. Proc. 2025-32.

Frequently asked questions

What is Indiana's state income tax rate in 2026?

2.95% flat for the state in 2026 — plus your county's own income tax on top. On a $75,000 salary for a single filer, this page's calculator puts Indiana state tax (before county tax) at $2,183, with net pay of $59,410 after federal tax of $7,670 and FICA of $5,738 (total tax $15,591).

Do all Indiana counties charge an income tax?

Yes — every one of Indiana's 92 counties levies its own local income tax, roughly 0.5% to 3.0% for 2026. Marion County (Indianapolis) is 2.02%, so an Indianapolis resident's combined state-plus-county rate is about 4.97%.

What is the standard deduction in Indiana for 2026?

Indiana has no standard deduction. You reduce federal AGI with Indiana's own adjustments and a $1,000 personal exemption per person instead — which is why Indiana tax starts at a much lower income level than the federal tax does.

Does Indiana tax Social Security benefits?

No. Social Security and railroad retirement benefits are fully deductible from Indiana AGI at both the state and county level. Pensions, IRA and 401(k) withdrawals are taxed, though military retirement pay is fully exempt.

Which county's tax rate do I pay if I move within Indiana during the year?

Your county of residence on 1 January of the tax year sets your county rate for the whole year, even if you move counties in February. Nonresidents working in an Indiana county pay that county's tax on their Indiana income.

Is Indiana's income tax rate still falling?

Yes — Indiana is mid-phasedown. The rate was 3.05% in 2024 and 3.00% in 2025, is 2.95% for 2026, and falls to 2.90% for 2027 under current statute.