← The Atlas
No 25 State Dossier · IN

Indiana,
income tax, 2026.

Low flat 2.95% rate (reduced from 3.05%). Affordable living. Indianapolis motorsports & tech scene.

State rate
2.95%
Local
varies
Sales tax
7%
COL index
90
§ I · At four incomes

Composite take-home, read at representative salaries.

Income Federal FICA State Take-home Effective
$60,000 $5,020 $4,590 $1,770 $48,620 19.0%
$100,000 $13,170 $7,650 $2,950 $76,230 23.8%
$150,000 $24,734 $11,475 $4,425 $109,366 27.1%
$250,000 $51,304 $15,064 $7,375 $176,257 29.5%
§ II · Other levies

What Indiana charges instead.

State sales
7%

base rate

Local
varies

city income tax

Property
0.83%

effective

COL index
90

100 = national avg.

§ III · The instrument

Adjust the income, read the brackets.

Income Scale · Gross
Filing: Single
$
$0
$25k
$50k
$100k
$200k
$500k
§ IV · Brackets

Indiana State Income Tax Brackets (2026)

Indiana uses a flat tax rate applied to all taxable income.

2.95%
Flat rate on all taxable income
§ V · Regional

Compare Indiana with nearby states.

01
South Dakota No income tax
$75k → $61,592 02
Illinois 4.95% top rate
$75k → $57,879 03
Michigan 4.25% top rate
$75k → $58,404 04
Minnesota 9.85% top rate
$75k → $57,943 05
Wisconsin 7.65% top rate
$75k → $58,638
FAQ

Frequently asked questions.

What is the Indiana income tax rate for 2026?

Indiana has a flat 2.95% state income tax in 2026. At $75,000 gross income, state tax is approximately $2,213.

What is total (federal + state) take-home on $100,000 in Indiana?

On $100,000 in Indiana (2026): Federal income tax is approximately $13,170, Indiana state tax is approximately $2,950, FICA (SS + Medicare) is approximately $7,650. Total taxes: $23,770. Take-home: $76,230 (23.8% combined effective rate).

Does Indiana have sales tax?

Indiana's state sales tax rate is 7%. Local jurisdictions may add additional taxes.

Sources: IRS Rev. Proc. 2025-32, Tax Foundation 2025 State Rates, Federation of Tax Administrators Compare Indiana globally →