Calculate your take-home pay in Indianapolis (Marion County), Indiana including the 2.02% local income tax on top of Indiana's 2.95% state rate.
| Salary | City Tax | Take-Home (with city tax) | Take-Home (without) | City Tax Cost/Month |
|---|---|---|---|---|
| $50,000 | $1,010 | $39,870 | $40,880 | $84 |
| $75,000 | $1,515 | $57,810 | $59,325 | $126 |
| $100,000 | $2,020 | $74,155 | $76,175 | $168 |
| $125,000 | $2,525 | $90,451 | $92,976 | $210 |
| $150,000 | $3,030 | $106,296 | $109,326 | $253 |
| $200,000 | $4,040 | $138,947 | $142,987 | $337 |
Indianapolis/Marion County levies a 2.02% county income tax — the highest county rate in the Indianapolis metro area. Indiana's county taxes are based on your county of residence as of January 1 of the tax year.
Combined with Indiana's flat 2.95% state rate, Indianapolis residents pay 4.97% in total state and local income tax. Nearby Hamilton County (Carmel, Fishers) charges only 1.0%, saving residents over $1,000/year on a $100K salary.
The county tax is applied to Indiana adjusted gross income and is withheld by employers alongside state tax. Unlike Ohio, there is no non-resident county tax — only your county of residence matters.
The 2.02% local tax is applied on top of Indiana's 2.95% state income tax and federal income tax. On a $100,000 salary, Indianapolis (Marion County)'s local tax costs approximately $2,020/year — that's $168/month or $78 per biweekly paycheck.
This tax applies only to Indianapolis (Marion County) residents. If you work in Indianapolis (Marion County) but live elsewhere, you are not subject to this local tax. This creates a significant financial incentive to live outside city limits while commuting in for work.
Indianapolis (Marion County) charges a 2.02% local income tax. On a $100,000 salary, this costs approximately $2,020/year. This tax applies to residents only.
Yes. Indianapolis (Marion County)'s tax only applies to residents. If you live outside city limits and commute in, you don't owe the local tax.
Including Indiana's 2.95% state rate, Indianapolis (Marion County)'s 2.02% local rate, and federal taxes, a $100K earner pays an effective rate of approximately 25.8%.
Yes, local income taxes are deductible as part of your state and local tax (SALT) deduction if you itemize. However, the SALT deduction is capped at $10,000 ($5,000 for married filing separately), which limits the benefit for many taxpayers.