Indiana Payroll Tax Calculator 2026

Calculate Indiana state income tax, federal withholding, Social Security, Medicare, and net take-home pay.

2026 Indiana tax rates · FICA · Indiana WH-4
State Income Tax
3.05% flat rate
Social Security
6.2%
Medicare
1.45%
State Form
Indiana WH-4
Calculate Your Indiana Paycheck

Enter your salary or hourly rate and get a full breakdown: Indiana state tax, federal income tax, Social Security, Medicare, and exact net pay.

Open Indiana Payroll Tax Calculator
Free · No signup · 2026 IRS & IN rates

Indiana Tax Guide

Indiana Payroll Tax Overview 2026

Indiana uses a flat 3.05% income tax rate. All taxable income is taxed at the same percentage, regardless of how much you earn. This makes payroll calculations straightforward.

Indiana has a 3.05% flat state income tax, but most counties also levy a local income tax ranging from 0.5% to 3.38%.

Indiana's effective tax rate is often 4%–6% when county taxes are included. The county determines withholding based on where the employee lives.

Indiana Payroll Tax Summary
State Income Tax3.05% flat rate
Tax TypeFlat rate
Social Security6.2% on first $176,100
Medicare1.45% (+ 0.9% over $200K)
FUTA (employer)0.6% on first $7,000
Employee FormIndiana WH-4
Additional Payroll Taxes
County income tax (0.5%–3.38% depending on county)

FAQ

Indiana payroll tax questions

What is the Indiana income tax rate for 2026?
Indiana uses a flat 3.05% income tax rate on all taxable income. Unlike progressive-tax states, the same rate applies whether you earn $30,000 or $300,000. This makes Indiana payroll tax calculations simple and predictable.
What taxes do Indiana employees pay on their paycheck?
Indiana employees pay: (1) Federal income tax (based on W-4 withholding); (2) Social Security tax (6.2% on wages up to $176,100); (3) Medicare tax (1.45%, plus 0.9% on income over $200,000); (4) Indiana state income tax (3.05% flat rate); (5) County income tax (0.5%–3.38% depending on county). The employer matches the Social Security and Medicare portions.
What payroll withholding form do Indiana employees use?
Indiana employees complete Indiana WH-4 for state withholding in addition to the federal W-4. Employers use both forms to calculate the correct combined withholding amount.

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