Indiana Paycheck Calculator 2026

How Indiana withholds state and county tax

Indiana withholds two taxes from the same taxable figure: a state tax of 2.95% for 2026 and a county tax at the rate of the county you lived in on January 1^[in1]. Taxable pay is gross pay minus a "deduction constant" for your WH-4 exemptions, which the Department of Revenue publishes in Departmental Notice #1.

The constants are just the yearly exemption values divided by the number of paychecks^[in1]:

• Table A, $1,000 for each personal exemption on WH-4 line 5, including extra ones for being 65 or older or blind.
• Table B, $1,500 for each dependent on line 6, plus another $1,500 for each first-time dependent on line 7.
• Table C, $3,000 for each adopted child on line 8.

The notice's own example is an employee paid $800 a week with five personal exemptions, three dependents, one first-time dependent and two adopted children, in a county taxing at 1%. The constants add up to $326.92, leaving $473.08 of taxable income. State tax is $473.08 × 0.0295 = $13.96 and county tax $473.08 × 0.01 = $4.73^[in1]. This Indiana paycheck calculator repeats that calculation and matches both numbers to the cent.

Bonus checks and other one-time payments are withheld without exemptions. Indiana also does not follow IRC section 3402(n), the federal provision that lets an employee who expects to owe no tax have nothing withheld^[in1].

Indiana county income tax rates for 2026

All 92 Indiana counties levy a local income tax, and in the notice effective October 1, 2026 the rates run from 0.5% in Porter County to 3.0% in Randolph County^[in1]. The county is fixed on January 1: if you lived in an Indiana county that day, its rate applies for the whole year, even after a move. If you lived in another state on January 1 but worked mainly in an Indiana county, that county's rate applies^[in1].

The difference between counties is real money: on the example salary, Hamilton County's 1.1% costs $649 a year while Lake County's 1.5% costs $885, and Marion's 2.02% costs $1,192. For a county not in the list, choose Other county in the calculator and type its rate from the notice.

County rates can change in January and October. These eight stayed the same all through 2026. Elsewhere, six counties raised their rates on January 1, 2026: Carroll, Grant, Greene, Howard, Shelby and Union. Boone County went from 1.70% to 1.71% on October 1, 2026^{[in1][in2][in3]}.

The 2026 rate cut, Form WH-4 and out-of-state workers

The state rate fell from 3.00% in 2025 to 2.95% for 2026^[in3][in2]. On $60,000 with one exemption, 0.05 of a point is worth about $30 a year. County rates are separate and did not move with it.

Filling out the WH-4

Form WH-4 asks for the personal exemptions, dependents, first-time dependents and adopted children that feed Tables A, B and C, plus your county of residence and county of principal employment as of January 1^[in1]. The calculator shows the two most common lines, personal exemptions and dependents. The first-time and adopted-child amounts work the same way and lower taxable pay further. The county entries decide which local rate your employer uses, so they matter as much as the exemption counts.

Workers based in another state

Since January 1, 2024, an employer does not have to withhold Indiana state or county tax for a nonresident expected to work in Indiana 30 days or fewer in the year. If the employee goes over 30 days, the tax for the earlier days becomes due. Form WH-4AFF lets an employee certify the 30-day status, and days worked for earlier employers count toward the limit^[in1]. The relief does not apply to professional athletes, entertainers, public figures, or anyone who is an Indiana resident for part of the year.

Traditional 401(k) deferrals and pre-tax health premiums are treated as outside Indiana wages here, the same as for federal income tax. Departmental Notice #1 does not discuss them, and county tax uses the same taxable figure as the state tax. Compare a paycheck across the border in Ohio, Illinois or Kentucky, or work out an hourly shift with the time and a half calculator.

Indiana take-home pay on common salaries

Worked example: $60,000 in Indiana

1. Gross pay: $60,000 a year ÷ 26 paychecks = $2,307.69.
2. Federal income tax: the IRS percentage method annualizes $60,000 of taxable wages, subtracts the $8,600 built into the 2026 tables for a standard W-4, and applies the brackets (top rate 12%): $193.08^[p15t].
3. FICA: 6.2% Social Security $143.08 plus 1.45% Medicare $33.46^[tc751].
4. Indiana: Indiana income tax (2.95%) $66.94, Marion County income tax (2.02%) $45.84.
5. Net pay: $1,825.30 per paycheck, $47,458 a year (79.1% of gross).

Compare Indiana with nearby states

Same $60,000 salary, different state: Illinois $1,829.42 · Ohio $1,883.75 · Michigan $1,849.65 per paycheck. The state tax calculator ranks every state we cover on one salary, and the paycheck calculator switches states in one click. Hourly? Add overtime with the time and a half calculator.