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Indiana Paycheck Calculator

Reviewed Sep 29, 2026 IRS Pub 15-T 2026, Indiana DOR How we verify

Not a substitute for the advice of an attorney. General information; laws vary by state. Terms of use

Indiana paycheck calculator for tax year 2026: take-home pay and what the employer pays, per paycheck and per year. Indiana withholds a flat 2.95% state tax plus a county income tax that depends on the county where the employee lived on January first, both taken from wages after a fixed deduction for each exemption on Form WH-4 (Departmental Notice #1: How to Compute Withholding for State and County Income Tax (R47 / 10-26, effective Oct. 1, 2026)). Figures checked on September 29, 2026; the result is an estimate, not tax advice.

Take-home pay and employer cost

How the pay is set
USD per paycheck

Federal Form W-4

Step 2: two jobs or a working spouse
Other Form W-4 entries and pre-tax deductions (optional)Defaults used: every amount 0
USD per year
USD per year
USD per year
USD per paycheck
USD per paycheck
USD per paycheck

Indiana: Form WH-4

The county where the employee lived on January first. An employee who lived outside Indiana on that date picks the Indiana county of the main workplace.
Other Indiana Form WH-4 entries (optional)Defaults used: no exemptions
exemptions
Yourself, a spouse who does not claim their own, and the extra exemptions for age or blindness, as totaled on the form.
exemptions
Qualifying dependent children counted on the dependent line of the form.
exemptions
Children claimed on the supplemental first-time line, in addition to the dependent line.
exemptions
Adopted children claimed on the adopted child line.

Example: $2,000.00 gross pay per paycheck, paid every two weeks (26 paychecks a year), single, with the default WH-4 entries below

Take-home pay

$1,591.45 per paycheck

$41,377.70 per year

Employee lines
LinePer paycheckPer year
Gross pay$2,000.00$52,000.00
Federal income tax withholding$156.15$4,059.90
Social Security$124.00$3,224.00
Medicare$29.00$754.00
Indiana state income tax withholding$59.00$1,534.00
Indiana county income tax withholding (Marion)$40.40$1,050.40
Take-home pay$1,591.45$41,377.70

What the employer pays

$2,215.00 per paycheck

$56,257.50 per year

Employer lines
LinePer paycheckPer year
Gross pay$2,000.00$52,000.00
Social Security (employer match)$124.00$3,224.00
Medicare (employer match)$29.00$754.00
Federal unemployment (FUTA)$12.00$42.00
State unemployment (new-employer rate)$50.00$237.50
Total employer cost$2,215.00$56,257.50

Sources: IRS Pub 15-T 2026 and Indiana DOR, checked September 29, 2026. Estimate for tax year 2026. Not tax advice.

What you type stays in this browser: the numbers are computed on this page, and we never receive or store them. A result link holds only the numbers and choices of the form.

How Indiana taxes a paycheck

The calculator applies the IRS Publication 15-T percentage method and, for Indiana, the Departmental Notice #1 deduction constant method (state rate and county rate on wages minus the exemption constants) of the Indiana Department of Revenue, in effect for wages paid from October 1, 2026. Social Security takes 6.2% of wages up to $184,500 a year and Medicare 1.45% of all wages (plus 0.9% on wages above $200,000 a year), and the employer pays Social Security and Medicare again at the same rates (Publication 15 (2026), (Circular E), Employer's Tax Guide). The oldest Indiana document behind these figures was checked on September 29, 2026.

An Indiana paycheck carries a state income tax line and a county income tax line, and they share the same taxable figure. The employer starts from the wages of the pay period, subtracts a deduction constant built from the exemptions on Form WH-4, and multiplies what is left by the state rate of 2.95%. The same remainder is then multiplied by the county rate. There are no brackets and no standard deduction, so the math stays the same at every income level (Departmental Notice #1: How to Compute Withholding for State and County Income Tax (R47 / 10-26, effective Oct. 1, 2026)).

The deduction constant adds up several kinds of exemption. Each personal exemption is worth $1,000 a year, and it covers the employee, a spouse, and the extra exemptions for age or blindness. Each additional dependent exemption is worth $1,500, a child claimed for the first time adds a supplemental $1,500 on its own line, and each adopted child adds $3,000. The Department of Revenue prints these amounts per pay period in its deduction constant tables (Departmental Notice #1: How to Compute Withholding for State and County Income Tax (R47 / 10-26, effective Oct. 1, 2026)).

County tax is what sets Indiana apart. Every county in the list levies a local income tax, and the rates differ widely from the lowest county to the highest. Residence is fixed on January first: a worker who moves in the spring keeps the old county rate for the rest of the year. Someone who lived in another state on January first pays the rate of the Indiana county where the main workplace is, which is why the form asks for both counties.

Counties can change their rates in January or in October, and the Department of Revenue republishes its departmental notice each time, marking changed counties with an asterisk. A paycheck late in the year can therefore use a different county rate than a paycheck in the spring. The calculator follows the notice that takes effect on the first day of October, which applies to paychecks from that date on; a county whose rate changes with that notice is left out of the list until a second official document confirms its new rate.

Pre-tax retirement plan deferrals and cafeteria plan health premiums come out of wages before the constant is subtracted, since Indiana starts from the federal definition of income. Indiana has no state disability insurance or paid family leave payroll deduction, so after federal taxes the only state items on the stub are the state and county income tax lines.

The employer's side in Indiana

An Indiana employer withholds and remits both the state and the county tax, reporting the county on the year-end wage statement of each employee, so keeping each employee county current in payroll matters every January. The employer cost side is Indiana unemployment insurance, paid to the Department of Workforce Development on wages up to the taxable wage base, at the new employer rate until the account earns its own experience rate. Indiana has no employer paid family leave or disability contribution.

Every employer also owes federal unemployment tax (FUTA): 6% on the first $7,000 of each employee's wages a year. With the full 5.4% credit for state unemployment tax paid on time, the net rate is 0.6%, at most $42 per employee a year (IRS Topic no. 759, Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return).

In Indiana, a new employer pays state unemployment tax at 2.5% on the first $9,500 of each employee's wages a year (U.S. DOL, Office of Unemployment Insurance: Significant Provisions of State Unemployment Insurance Laws, effective July 2026). Later the rate follows the employer's own record, so the line in the result is the starting cost, not a fixed one.

Payday and final pay rules in Indiana

The full Indiana rules, with each law quoted: Indiana employment rules. The date a final paycheck is due for a given last day: final paycheck calculator.

Worked examples

Three pay levels for a single filer paid every two weeks, with the default entries of the form, computed with the same code as the calculator.

Gross pay per paycheckFederal income tax per paycheckSocial Security and Medicare per paycheckIndiana deductions per paycheckTake-home pay per paycheckEmployer cost per paycheck
$1,200.00$60.15$91.80$59.64$988.41$1,329.00
$2,500.00$216.15$191.25$124.25$1,968.35$2,768.75
$5,000.00$766.69$382.50$248.50$3,602.31$5,537.50

At $2,500.00 per paycheck the employee takes home $51,177.10 per year, and the employer spends $70,252.00 per year on that job before benefits.

Full time at the Indiana minimum wage of $7.25 per hour (State Minimum Wage Laws (U.S. DOL Wage and Hour Division table, updated July 1, 2026), checked September 27, 2026), 40 hours per week, is $580.00 per paycheck every two weeks: $506.80 per paycheck take-home, and $642.35 per paycheck for the employer.

Method and sources

Federal figures used on every Pay Desk page:

  • Boone County is left out. Boone County changed its local income tax rate for wages paid from October 1, 2026; only one official document (Departmental Notice #1) states the new rate, so the calculator leaves Boone County out until a second official source confirms it. (Departmental Notice #1: How to Compute Withholding for State and County Income Tax (R47 / 10-26, effective Oct. 1, 2026))
  • Per paycheck and per year. Per paycheck is one paycheck early in the year, before any yearly wage base is reached; per year is the full year at this pay with every wage base applied (Social Security, unemployment tax and any capped state contribution).
  • Forms W-4 from before 2020. Not covered: the federal line follows Worksheet 1A for the 2020 and later form.
  • Tax year 2027. When this page was checked (September 29, 2026) the IRS had not published the 2027 withholding tables (IRS page of forms and publications posted before release), so the calculator stays on tax year 2026.
  • What it leaves out. Local taxes the form does not ask for, workers' compensation insurance, benefits the employer pays, and supplemental pay such as bonuses.

Questions people ask

What is the Indiana state withholding rate this year?

The state rate is a flat 2.95% of wages after the exemption constant. County tax is added on top at the rate of the county of residence (Departmental Notice #1: How to Compute Withholding for State and County Income Tax (R47 / 10-26, effective Oct. 1, 2026)).

Which county tax rate applies if I move during the year?

The county where you lived on January first applies for the whole year. A move later in the year changes the county only from the next January.

I live in another state and work in Indiana. Do I pay county tax?

Yes, if your main workplace was in an Indiana county on January first: the employer withholds that county rate along with the state tax of 2.95% (Departmental Notice #1: How to Compute Withholding for State and County Income Tax (R47 / 10-26, effective Oct. 1, 2026)).

How much does each exemption on Form WH-4 lower my Indiana withholding?

A personal exemption removes $1,000 a year from taxable wages, a dependent exemption $1,500, and an adopted child $3,000; the saving is that amount times the state rate plus the county rate (Departmental Notice #1: How to Compute Withholding for State and County Income Tax (R47 / 10-26, effective Oct. 1, 2026)).

Does Indiana take money for paid family leave or disability from paychecks?

No. Indiana has no state payroll deduction for family leave or disability insurance; only state and county income tax are withheld.

Where this goes next

ToolHourly to salary calculatorRulebookIndiana employment rulesTemplateOffer letter template with the pay in writing

General information, not legal advice. Not a substitute for the advice of an attorney. This page is for general information only and isn’t legal, financial or tax advice. Laws vary by state and change; check the official source or talk to a qualified professional about your situation. Report an error