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.
| Rate | Taxable income over | Up to | Cumulative tax at top of band |
|---|---|---|---|
| 2.95% | $0 | and 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.
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.
| Taxable income (single) | Indiana tax | Effective rate | Top (marginal) rate |
|---|---|---|---|
| $50,000 | $1,475 | 2.9% | 2.95% |
| $75,000 | $2,213 | 2.9% | 2.95% |
| $100,000 | $2,950 | 2.9% | 2.95% |
| $150,000 | $4,425 | 2.9% | 2.95% |
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).
The state-specific rules behind the numbers above — the things a generic calculator gets wrong about Indiana.
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
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 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
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
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
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).
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%.
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.
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.
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.
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.
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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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.
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.
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.
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).
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%.
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.
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.
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.
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.
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