Indiana has a flat income tax (2.95% flat + local). On $100K, you keep $76,175 (23.8% effective rate), ranking #15/50 states. Cost-adjusted: #10.
Pre-filled with Indiana tax rates. Adjust salary and filing status.
Indiana uses a flat income tax rate of 2.95%, meaning all income is taxed at the same rate regardless of how much you earn. This simplicity is valued by taxpayers and businesses alike.
Indiana’s sales tax adds to the overall tax burden for residents. When evaluating total taxes, consider income, sales, and property taxes together.
Property tax rates in Indiana vary by county and municipality. The overall property tax burden should be considered alongside income taxes when evaluating total cost.
Indiana has a cost of living roughly in line with the national average (index 90), meaning your take-home pay translates fairly directly to purchasing power.
How does Indiana’s tax burden change as your income rises? With a flat tax, the state rate is constant, but the overall effective rate still rises because federal brackets are progressive.
| Gross Salary | Federal Tax | FICA | State Tax | Take-Home | Effective Rate | Monthly |
|---|---|---|---|---|---|---|
| $40K | $2,620 | $3,060 | $1,180 | $33,140 | 17.2% | $2,762 |
| $50K | $3,820 | $3,825 | $1,475 | $40,880 | 18.2% | $3,407 |
| $60K | $5,020 | $4,590 | $1,770 | $48,620 | 19.0% | $4,052 |
| $75K | $7,725 | $5,738 | $2,213 | $59,325 | 20.9% | $4,944 |
| $100K | $13,225 | $7,650 | $2,950 | $76,175 | 23.8% | $6,348 |
| $120K | $17,625 | $9,180 | $3,540 | $89,655 | 25.3% | $7,471 |
| $150K | $24,774 | $11,475 | $4,425 | $109,326 | 27.1% | $9,111 |
| $200K | $36,774 | $14,339 | $5,900 | $142,987 | 28.5% | $11,916 |
The median household income in Indiana is $54,000, which translates to $43,976/year ($3,665/month) take-home after all taxes. This is near the national median.
After cost-of-living adjustment, the median income’s purchasing power in Indiana is equivalent to $48,862 in an average-cost area. Your money stretches further here than the raw numbers suggest.
Indiana ranks #15/50 for raw take-home pay and #10/50 for cost-adjusted purchasing power at $100K. The 5-position shift between raw and cost-adjusted ranking reflects the below-average cost of living, which boosts real purchasing power.
At $100K in Indiana, you keep $76,175. The best state (Alaska) gives $79,125, and the worst (California) gives $70,480. Indiana is mid-pack, $2,950 behind the leader.
Indiana has a flat income tax structure with rates of 2.95% flat + local. On $100K, you’ll pay approximately $2,950 in state income tax, bringing your total take-home to $76,175 after all federal and state taxes.
Filing as married filing jointly on $100K changes take-home from $76,175 (single) to $81,760 (married). The $5,585 marriage bonus comes from the doubled standard deduction ($32,200 vs $16,100) and wider lower brackets.
Important: Indiana has local income taxes that vary by city or county. Your actual tax depends on where you live — see the city-specific calculators below for exact rates.
Indiana has cities that levy their own income tax on top of the state rate. Select a city below to see the exact local tax impact on your paycheck.
How does Indiana stack up against other states in the Midwest?