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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 Type
Flat
Top Rate
2.95%
Sales Tax
7%
Avg Combined
7.0%
State Tax Data Freshness
Tax year2026
Filing year2027 (generally)
EffectiveJan. 1, 2026
Last verifiedJul 29, 2026

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

Indiana levies a flat income tax of 2.95% on taxable income for 2026, down from 3.05% in 2025 as the state continues a legislated phase-down. Indiana allows no standard deduction; instead it grants a personal exemption of $1,000 per filer and $2,000 for joint filers, plus additional exemptions for dependents. Every Indiana county also levies its own local income tax on top of the state rate, so the combined rate an Indiana resident actually pays depends on the county of residence as of January 1.

Taxable IncomeRate
All taxable income2.95%
Open Income Tax Calculator for Indiana

Sales Tax

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

State Rate 7%
Avg. Combined (with local): 7.0%
Open Sales Tax Calculator for Indiana
How Indiana Compares

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

Frequently Asked Questions
What is Indiana's income tax rate?

Indiana levies a flat income tax of 2.95% on taxable income for 2026.

Does Indiana tax groceries?

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

What are Indiana county taxes?

Every county in Indiana levies its own income tax on top of the 2.95% state rate. These range from 0.5% (several counties) to 2.86% (Pulaski County), and you pay the rate where you live.

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