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Indiana State Income Tax Calculator

Calculate your 2026 Indiana state income tax. See your bracket breakdown, effective rate, and how Indiana compares to neighboring states.

2.95% Flat Tax
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Indiana · 2026

For tax year 2026, Indiana’s state income-tax rate is 2.95%; the 2025 rate was 3.00%. Indiana has no general state standard or itemized deduction. Each eligible filer, joint spouse and dependent has a $1,000 exemption, with separate qualifying-child, first-year, adoption, age and blindness exemptions. These exemptions do not phase out with income, and a filer claimable by another taxpayer retains their own exemption. This state-only estimate excludes county income tax. Review the state income basis, exemption eligibility and any entered allowed credits.

Indiana Department of Revenue — 2026 income-tax rate · Indiana Department of Revenue — personal exemption rules, Bulletin 117 · Indiana Department of Revenue — 2024 and 2025 rate history
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The annual amount is gross income minus entered pre-tax deductions and modeled federal and state income tax. Monthly and weekly amounts divide it by 12 and 52. These allocations exclude Social Security and Medicare (FICA), local taxes, other payroll taxes, and unmodeled paycheck deductions. They do not estimate paycheck take-home or actual withholding.

Effective State Income Tax Rate vs Neighboring States

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About Indiana state taxes (Tax year 2026)

For tax year 2026, Indiana’s state income-tax rate is 2.95%; the 2025 rate was 3.00%. Indiana has no general state standard or itemized deduction. Each eligible filer, joint spouse and dependent has a $1,000 exemption, with separate qualifying-child, first-year, adoption, age and blindness exemptions. These exemptions do not phase out with income, and a filer claimable by another taxpayer retains their own exemption. This state-only estimate excludes county income tax. Review the state income basis, exemption eligibility and any entered allowed credits.

Groceries are exempt from sales tax. Prescription drugs are exempt.

Indiana's top income tax rate is 2.95% for tax year 2026. Its combined state and local sales tax averages 7.0%.

Filing in Indiana: returns for tax year 2026 are administered by the Indiana Department of Revenue and are generally filed in 2027 by the federal April deadline unless Indiana declares a state-specific extension. Tax type on this return: Flat. Top marginal rate: 2.95%. State sales-tax rate: 7%. For the most current contact info, see the Federation of Tax Administrators directory.

Indiana — What is Indiana's income tax rate? Indiana’s 2026 state income-tax rate is 2.95%. County income tax is separate and is not included in this state-only estimate.

Indiana — Does Indiana tax groceries? No, groceries (unprepared food) are exempt from Indiana's 7% sales tax.

Indiana — What are Indiana county taxes? Indiana county income tax is separate from the 2.95% state rate and is not included here. Verify the current Indiana Department of Revenue county table for the applicable county and tax year.

Reviewed methodology

How this page is reviewed

High YMYL · Last verified 2026-11-06

See methodology, assumptions & sources
Risk tierHigh YMYL
AuthorCalculover Editorial Team Tax education
Editorial ownerCalculover Tax & Payroll Desk State-tax methodology owner
ReviewerCalculover Editorial Review Government-source and limitation review
Last reviewed2026-11-06
Last verified2026-11-06
Data effective date2026-01-01
JurisdictionIndiana

Methodology

These pages estimate annual state income tax for the selected 2026 jurisdiction and filing status. The route's coverage panel identifies the supported income basis, deductions, credits and exclusions.

Assumptions

  • Enter the income basis and eligible pre-tax deductions requested by the calculator; gross wages, federal AGI and state AGI are not interchangeable.
  • Some methods require confirmed state facts or explicit projection assumptions. An unavailable component is not zero tax.

Limitations

  • The estimate excludes unmodeled income, adjustments, local taxes and special filing situations. Utah's indexed-credit assumptions remain provisional while final 2026 instructions are pending.
  • Annual liability differs from withholding and paycheck take-home. Confirm the current official forms and source versions for a complete return.

Sources

Professional guidance: This page is for state-tax education only and is not tax, legal, financial, or investment advice. State tax decisions and multi-state filing should be reviewed with a CPA or enrolled agent licensed in the relevant states.

Indiana Income Tax FAQs

What is the Indiana income tax rate?

Indiana’s 2026 state income-tax rate is 2.95%. County income tax is separate and is not included in this state-only estimate.

How is Indiana income tax calculated?

Start with the reviewed Indiana adjusted gross income, subtract the eligible exemptions and multiply the positive result by 2.95%. Eligible pre-tax wage deductions reduce the common income basis once. Enter a reviewed state AGI if state adjustments differ. Review any allowed state credits separately.

Does Indiana have a standard deduction?

Indiana has no general state standard or itemized deduction. It allows a $1,000 exemption for each eligible filer, joint spouse and dependent. Additional child, first-year, adoption, age and blindness exemptions have separate eligibility rules; they are not inferred from the common dependent count. A filer claimable by someone else retains their own exemption, and these exemptions have no income phaseout.

How can I reduce my Indiana income taxes?

Review the state AGI and the exemption facts shown on this page. Enter only eligible pre-tax wage deductions and independently reviewed allowed state credits. The common itemized amount is retained as a draft but is not a general Indiana deduction. County taxes, withholding and payments are separate.

How does Indiana's 2.95% flat tax compare to neighboring states?

Neighbor comparisons use each state’s modeled income basis, deductions and coverage. Indiana’s own and comparison calculations use the same reviewed facts. Unavailable state assumptions can prevent a comparison. This is not a county-tax, residency or relocation-cost recommendation.