Indiana Tax Calculators.
Tax year 2026 income tax rates, brackets, and sales tax for Indiana. Returns for tax year 2026 are generally filed in 2027; source links and last-verified dates are shown below.Tax year 2026 means income earned during calendar year 2026; those returns are generally filed in 2027. State and local sales tax rates can change during the year, so confirm current rules before filing or remitting tax.
Income Tax
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.
| Taxable Income | Rate |
|---|---|
| All taxable income | 2.95% |
Sales Tax
Qualifying food and food ingredients are exempt; prepared food and other excluded categories can be taxable. Qualifying prescription drugs are exempt. Combined rates shown are population-weighted July 1, 2026 estimates; actual item and local rates vary.
Indiana's top income tax rate is 2.95% for tax year 2026. Its combined state and local sales tax averages 7.0% (July 1, 2026 population-weighted estimate).
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.
Does Indiana tax groceries?
Qualifying food and food ingredients are exempt from Indiana’s 7% sales tax. Prepared food and other excluded categories can be taxable.
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.
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