Indiana Paycheck Calculator

Five tax lines come out of an Indiana paycheck: federal income tax, Social Security (6.2% up to $184,500), Medicare (1.45%), Indiana state income tax, and Indiana county income tax, which your employer withholds on the same form and the same taxable wages as the state line. Indiana has no employee-paid payroll premiums, so any other deduction on your stub is your own election: 401(k), health premiums, HSA, and similar benefits.

Departmental Notice #1 annualizes your pay, subtracts $1,000 for each personal exemption on WH-4 line 5 and $1,500 for each qualifying dependent on line 6, and multiplies what is left by 2.95%. The WH-4 also allows an extra $1,500 for a dependent claimed for the first time (line 7) and $3,000 per adopted child (line 8); this calculator leaves those two out. Bonuses and other non-periodic payments are withheld at 2.95% plus the county rate with no exemptions subtracted.

County tax is set once a year: the county where you lived on January 1 applies for all of 2026, even if you move, and someone who lived outside Indiana on January 1 pays the rate of their principal work county. All 92 counties levy a tax, from 0.50% (Porter) to 3.00% (Randolph); the hint under the field lists the four largest. Look up your county in Departmental Notice #1 and type the percentage into the Indiana county income tax field. Counties can change rates each January and October.

The state rate fell from 3.00% to 2.95% on January 1, 2026, and drops to 2.90% in 2027 under the HB 1001 schedule; six counties (Carroll, Grant, Greene, Howard, Shelby, Union) raised rates the same day, and exemption amounts did not change. Residents of Kentucky, Michigan, Ohio, Pennsylvania, and Wisconsin pay only their home state's income tax on Indiana wages, but Indiana county tax for the work county still applies. Nonresidents who work in Indiana 30 days or fewer are exempt on Form WH-4AFF.