How does Indiana work out the income tax taken from my paycheck?

The Department of Revenue's Departmental Notice #1 sets a state rate of 2.95% for 2026 and a county rate for each of the 92 counties. Your employer takes the exemptions on your Form WH-4 off the paycheck, multiplies what is left by the state rate and again by your county's rate, and withholds both. For a $60,000 salary with 1 exemption paid every two weeks, that is $2,307.69 less $38.46, $2,269.23, times 2.95%, $66.94 for the state. 2.02% for Marion County adds $45.84.

How much is $60,000 a year after tax in Indiana?

For a single employee who claims 1 exemption on the WH-4 and is paid every two weeks, a $60,000 salary takes home $1,871.13 a paycheck with state tax only, or $48,649.44 a year. In Marion County, which is Indianapolis, the county tax of $45.84 a paycheck brings it to $1,825.29, or $47,457.60 a year. The state-only year's taxes are $5,020.08 of federal income tax, $1,740.44 of Indiana income tax, $3,720.08 of Social Security and $869.96 of Medicare.

How much is $20 an hour after tax in Indiana?

At 40 hours a week and weekly pay, $20 an hour is $800.00 gross and $661.69 take-home a week for a single employee with 1 exemption and no county tax. That is $54.08 of federal income tax, $23.03 of Indiana income tax, $49.60 of Social Security and $11.60 of Medicare. Pick your county in the calculator to add its tax, and switch to hourly to type your own hours, including overtime.

Which Indiana county's tax is taken from my paycheck?

The county you lived in on January 1 of the tax year. If you lived outside Indiana on January 1 but your principal place of work or business was in an Indiana county that day, it is the county where you work. The rates run from 0.5% in Porter County to 3% in Randolph County, and a county can change its rate, which the Department publishes in Departmental Notice #1.

What do I put on the Indiana Form WH-4?

Line 5 is your personal exemptions at $1,000 each in 2026, and it includes extra ones when you or your spouse are 65 or older or blind. Line 6 is $1,500 for each qualifying dependent, line 7 adds $1,500 for each first-time additional dependent, and line 8 is $3,000 for each adopted child, which this calculator does not take. On the $60,000 example, 0 exemptions withhold $68.08 of state tax a paycheck against $66.94 with 1 and $65.81 with 2. Indiana does not follow the federal allowance for no withholding.

How does Indiana tax a bonus?

For a one-time payment such as a bonus check, the Department says to compute withholding without exemptions: the state rate of 2.95% plus the employee's county rate on the whole payment. This calculator treats all pay as regular pay, and the bonus tax calculator works out the bonus case.

Does Indiana withhold if I work there for only a few days?

Not always. An employer is not required to withhold state or county tax on an employee who will work in Indiana for 30 days or less in the year, if a time and attendance system records the out-of-state work location, and an employee can hand in Form WH-4AFF to be relieved until they have worked in Indiana for more than 30 days. The days worked for a previous employer in Indiana count toward the 30, and the allowance does not apply to anyone who is or becomes an Indiana resident during the year.

What does a 401(k), an HSA or a health plan do to my Indiana paycheck?

Indiana's withholding follows the federal rule: Notice #5 says employers who must withhold federal tax under the Internal Revenue Code must withhold Indiana state and local tax from the employee's wages. This calculator therefore takes a 401(k) deferral, health premiums through a cafeteria plan and HSA contributions through one out of the pay before it applies the state and county rates. Putting 6% of a $60,000 salary into a 401(k) ($138.46 a paycheck) cuts Indiana withholding by $4.08 and take-home pay by only $117.76. A $100 HSA contribution a paycheck cuts Indiana withholding by $2.95.

Who pays unemployment tax in Indiana, and how much is it?

The employer does, to the Department of Workforce Development, and nothing comes out of your paycheck for it. The Department's typical new employer rate is 2.5% on the first $9,500 of each employee's pay, which is $237.50 a year per employee, with rates from 0.50% to 7.40% once an employer has its own record. Indiana is not on the Labor Department's list of states with a 2026 federal credit reduction.

Indiana Paycheck Calculator

Last updated October 22, 2026FreeNo signupFormula shown

Enter your pay, how often you are paid, the exemptions on your Form W-4 and Indiana Form WH-4, and your county, and this Indiana paycheck calculator shows your 2026 take-home pay. It follows the Department of Revenue's method, 2.95% for the state and your county's rate on what is left after your exemptions, and works out the employer's side of the bill under it.

State

Indiana

Another state? Pick any of the 50 states and DC.

I'm paid

Yearly salary (USD)

Pay frequency

Filing status on Form W-4

Indiana withholding

Personal exemptions on Form WH-4 (line 5)

$1,000 each: 1 for you, 1 for a spouse who does not claim their own, and 1 more for each of you who is 65 or older or blind.

Additional dependent exemptions on Form WH-4 (lines 6 and 7)

$1,500 each, for every dependent you claim an exemption for.

County income tax

The county you lived in on January 1 of the tax year, or the county you work in if you lived out of state that day.

Form W-4 steps 2 to 4

Step 2 box is checked

Two jobs with similar pay, or both spouses work.

Children under 17

Step 3: $2,200 each.

Other dependents

Step 3: $500 each.

Other income per year

Step 4(a).

Deductions per year

Step 4(b).

Extra withholding each paycheck (USD)

Step 4(c).

401(k), % of pay

2026 limit $24,500.

Health premiums per paycheck

Pre-tax.

HSA per paycheck

2026 limit $8,750.

Take-home pay per paycheck

$1,871.13

$2,307.69 gross · $436.56 withheld (18.9%)

Where this paycheck goes

Gross pay: $2,307.69
Federal income tax: - $193.08
Social Security6.2%: - $143.08
Medicare1.45%: - $33.46
Additional Medicare0.9%: - $0.00
Indiana income tax: - $66.94
401(k): - $0.00
Health premiums: - $0.00
HSA: - $0.00

Take-home pay$1,871.13

Over the year, 26 paychecks

Gross pay: $60,000
Taxes: - $11,351
Pre-tax deductions: - $0
Share kept: 81.1%

Take-home pay$48,649

Of every $100 of gross pay, $81 is take-home.

Federal income tax$5,020 · 8.4%
Social Security$3,720 · 6.2%
Medicare$870 · 1.4%
Indiana income tax$1,740 · 2.9%
Take-home pay$48,649 · 81.1%

Take-home pay rises with every extra dollar of salary.

Gross payTake-home pay

This pay costs the employer $64,870 a year, $2,494.98 each pay period.

What the employer adds, per year

Employer Social Security6.2% to $184,500: $3,720
Employer Medicare1.45%: $870
Federal unemployment (FUTA)0.6% of the first $7,000: $42
Indiana unemployment2.5% of the first $9,500: $238

Employer taxes$4,870

Total cost of the employee

Gross pay: $60,000
Employer taxes: + $4,870
Per pay period: $2,494.98

Per year$64,870

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Indiana withholds 2.95% for the state and your county's rate, after $1,000 for each exemption on your WH-4.

Departmental Notice #1 says the 2026 state adjusted gross income tax rate for individuals is 2.95%. Your employer takes $1,000 a year off your pay for each personal exemption on line 5 of the WH-4, $1,500 for each additional dependent exemption on lines 6 and 7, divided across the paychecks, then multiplies the rest by the state rate and again by the rate of your county. There are no brackets and no filing status: two workers on the same pay differ only by exemptions and by county.

A $60,000 Indiana salary takes home $1,871.13 every two weeks before county tax.

The calculator opens on this case: a single employee with 1 exemption on the WH-4 and a standard Form W-4, paid every two weeks, with no county selected and no pre-tax deductions.

Gross pay: $60,000 ÷ 26 = $2,307.69
Federal income tax: $193.08
Indiana income tax: ($2,307.69 − $38.46) × 2.95% = $2,269.23 × 2.95% = $66.94
Social Security: 6.2% × $2,307.69 = $143.08; Medicare: 1.45% = $33.46
Take-home pay: $1,871.13 a paycheck, $48,649.44 a year

Of $60,000 gross, $48,649 reaches the bank account.

Federal income tax$5,020 · 8.4%
Social Security$3,720 · 6.2%
Medicare$870 · 1.4%
Indiana income tax$1,740 · 2.9%
Take-home pay$48,649 · 81.1%

Each paycheck: $1,871.13Kept: 81.1%

A single employee on a $60,000 salary, paid every two weeks, with 1 exemption and no county tax. Invented example. Each tax is rounded to the cent in every paycheck, as payroll does.

Your county adds 0.5% to 3% of the same pay, which is $11.35 to $68.08 a paycheck here.

All 92 Indiana counties charge an income tax, set by the county and listed in Notice #1. It is figured on the same taxable pay as the state tax. In Marion County, where Indianapolis is, the rate is 2.02%, which takes $45.84 from the $60,000 example and leaves $1,825.29. Pick the county in the calculator to see yours.

The county moves the income tax of a biweekly paycheck from $66.94 to $135.02.

No county tax$66.94
Porter County, 0.5%$78.29
Hamilton County, 1.1%$91.90
Allen County, 1.59%$103.02
Marion County, 2.02%$112.78
Randolph County, 3%$135.02

Indiana income taxCounty income tax

Invented example: a $60,000 salary, single, paid every two weeks, with 1 exemption on Form WH-4.

The county is the one you lived in on January 1, or the one you work in if you live out of state.

Both the county of residence and the county of principal work are fixed on January 1 of the tax year, so moving to a county with a different rate in March changes nothing until the next January. An employee who lives outside Indiana on that date but works in an Indiana county is withheld at that county's rate. Notice #1 also lets an employer skip state and county tax for some out-of-state employees who will work in Indiana 30 days or less (the rules are in the questions below), and Indiana does not follow the federal allowance for no withholding.

Each exemption on the WH-4 keeps $1,000 of pay from tax, which is worth $1.14 of state tax a paycheck.

$1,000 divided across 26 paychecks is $38.46, so one exemption lowers the state tax by $1.14 a paycheck and a county tax of 2.02% by another $0.78. A dependent exemption on line 6 is worth $1,500 a year: two of them lower the state tax by $3.40 a paycheck. The saving is the same at every pay level, because the rate is flat.

Each exemption on line 5 takes $1.14 off the Indiana state tax of a biweekly paycheck.

0 exemptions$68.08
1 exemption$66.94
2 exemptions$65.81
3 exemptions$64.67
5 exemptions$62.40

Invented example: a $60,000 salary, single, paid every two weeks, with no county tax. Each exemption is $1,000 of pay a year.

Indiana withholds on the wages federal tax is withheld on, so a 401(k) lowers the tax.

Notice #5 says an employer that must withhold federal tax must withhold Indiana state and local tax from the employee's wages, so the pay the state taxes is the same pay as for federal withholding. A 401(k) deferral of 6% on the $60,000 example is $138.46 a paycheck, and it lowers Indiana withholding by $4.08. Social Security and Medicare still apply to a 401(k) deferral, but not to health premiums or an HSA contribution made through a cafeteria plan.

A 6% 401(k) lowers federal tax by $16.62 and Indiana tax by $4.08 a paycheck.

Federal tax, no 401(k)$193.08
Federal tax, 6% 401(k)$176.46
Indiana tax, no 401(k)$66.94
Indiana tax, 6% 401(k)$62.86

Invented example: a $60,000 salary, single, paid every two weeks. 6% of pay is $138.46 a paycheck.

Hiring that employee costs $64,870 a year in Indiana.

On top of the $60,000, the employer matches Social Security and Medicare at 6.2% and 1.45%, which is $4,590. It pays federal unemployment tax of 0.6% on the first $7,000, which is $42; Indiana is not on the Labor Department's list of states with a 2026 credit reduction. A typical new Indiana employer pays unemployment tax at 2.5% on the first $9,500 of pay, which is $237.50 a year per employee. The employee pays nothing toward it.

On $60,000 of pay, the employer owes $4,870 more in taxes.

Employer Social Security$3,720
Employer Medicare$870
Indiana unemployment$238
Federal unemployment (FUTA)$42

An employee on a $60,000 salary. Indiana unemployment is the 2026 new-employer rate of 2.5% on the first $9,500.

Take-home pay in Indiana runs from $33,170 on $40,000 to $109,396 on $150,000.

For a single employee with 1 exemption and no county tax, paid every two weeks. Choose a county in the calculator to take its tax out of every row. For the neighbor to the north, see the Michigan paycheck calculator.

Take-home pay in Indiana for a single employee on a standard Form W-4, paid every two weeks, with no pre-tax deductions. Indiana taxes are its income tax.
Salary	Federal tax	Social Security and Medicare	Indiana taxes	Take-home a year	Every two weeks
$40,000	$2,620	$3,060	$1,151	$33,170	$1,275.75
$50,000	$3,820	$3,825	$1,446	$40,910	$1,573.45
$60,000	$5,020	$4,590	$1,740	$48,649	$1,871.13
$75,000	$7,670	$5,738	$2,183	$59,409	$2,284.98
$100,000	$13,170	$7,650	$2,921	$76,259	$2,933.05
$150,000	$24,734	$11,475	$4,396	$109,396	$4,207.52

Methodology & sources

The formula this calculator uses is shown in full above, and every assumption is an input you control. There are no hidden industry presets. All math runs in your browser; nothing you enter is stored or sent to a server. For the reasoning behind the formula and its edge cases, see:

Frequently asked questions

How does Indiana work out the income tax taken from my paycheck?: The Department of Revenue's Departmental Notice #1 sets a state rate of 2.95% for 2026 and a county rate for each of the 92 counties. Your employer takes the exemptions on your Form WH-4 off the paycheck, multiplies what is left by the state rate and again by your county's rate, and withholds both. For a $60,000 salary with 1 exemption paid every two weeks, that is $2,307.69 less $38.46, $2,269.23, times 2.95%, $66.94 for the state. 2.02% for Marion County adds $45.84.
How much is $60,000 a year after tax in Indiana?: For a single employee who claims 1 exemption on the WH-4 and is paid every two weeks, a $60,000 salary takes home $1,871.13 a paycheck with state tax only, or $48,649.44 a year. In Marion County, which is Indianapolis, the county tax of $45.84 a paycheck brings it to $1,825.29, or $47,457.60 a year. The state-only year's taxes are $5,020.08 of federal income tax, $1,740.44 of Indiana income tax, $3,720.08 of Social Security and $869.96 of Medicare.
How much is $20 an hour after tax in Indiana?: At 40 hours a week and weekly pay, $20 an hour is $800.00 gross and $661.69 take-home a week for a single employee with 1 exemption and no county tax. That is $54.08 of federal income tax, $23.03 of Indiana income tax, $49.60 of Social Security and $11.60 of Medicare. Pick your county in the calculator to add its tax, and switch to hourly to type your own hours, including overtime.
Which Indiana county's tax is taken from my paycheck?: The county you lived in on January 1 of the tax year. If you lived outside Indiana on January 1 but your principal place of work or business was in an Indiana county that day, it is the county where you work. The rates run from 0.5% in Porter County to 3% in Randolph County, and a county can change its rate, which the Department publishes in Departmental Notice #1.
What do I put on the Indiana Form WH-4?: Line 5 is your personal exemptions at $1,000 each in 2026, and it includes extra ones when you or your spouse are 65 or older or blind. Line 6 is $1,500 for each qualifying dependent, line 7 adds $1,500 for each first-time additional dependent, and line 8 is $3,000 for each adopted child, which this calculator does not take. On the $60,000 example, 0 exemptions withhold $68.08 of state tax a paycheck against $66.94 with 1 and $65.81 with 2. Indiana does not follow the federal allowance for no withholding.
How does Indiana tax a bonus?: For a one-time payment such as a bonus check, the Department says to compute withholding without exemptions: the state rate of 2.95% plus the employee's county rate on the whole payment. This calculator treats all pay as regular pay, and the bonus tax calculator works out the bonus case.
Does Indiana withhold if I work there for only a few days?: Not always. An employer is not required to withhold state or county tax on an employee who will work in Indiana for 30 days or less in the year, if a time and attendance system records the out-of-state work location, and an employee can hand in Form WH-4AFF to be relieved until they have worked in Indiana for more than 30 days. The days worked for a previous employer in Indiana count toward the 30, and the allowance does not apply to anyone who is or becomes an Indiana resident during the year.
What does a 401(k), an HSA or a health plan do to my Indiana paycheck?: Indiana's withholding follows the federal rule: Notice #5 says employers who must withhold federal tax under the Internal Revenue Code must withhold Indiana state and local tax from the employee's wages. This calculator therefore takes a 401(k) deferral, health premiums through a cafeteria plan and HSA contributions through one out of the pay before it applies the state and county rates. Putting 6% of a $60,000 salary into a 401(k) ($138.46 a paycheck) cuts Indiana withholding by $4.08 and take-home pay by only $117.76. A $100 HSA contribution a paycheck cuts Indiana withholding by $2.95.
Who pays unemployment tax in Indiana, and how much is it?: The employer does, to the Department of Workforce Development, and nothing comes out of your paycheck for it. The Department's typical new employer rate is 2.5% on the first $9,500 of each employee's pay, which is $237.50 a year per employee, with rates from 0.50% to 7.40% once an employer has its own record. Indiana is not on the Labor Department's list of states with a 2026 federal credit reduction.

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