Estimate your Indiana state income tax plus combined federal and IN state tax for 2026. 3.05% flat rate.
Indiana has a flat income tax rate of 3.05%, one of the lowest flat rates in the nation. Indiana counties also impose local income taxes averaging 1.5-2%, bringing the combined effective rate for most residents to roughly 4.5-5%. Use the calculator above to estimate your combined federal and Indiana state income tax for 2026. State tax figures use a simplified rate — for precise Indiana state tax calculations, consult the Indiana Department of Revenue or a licensed tax professional.
Indiana has a 3.05% flat rate state income tax for 2026. Indiana has a flat income tax rate of 3.05%, one of the lowest flat rates in the nation. Indiana counties also impose local income taxes averaging 1.5-2%, bringing the combined effective rate for most residents to roughly 4.5-5%. The state income tax is calculated separately from federal income tax and is paid through payroll withholding or quarterly estimated payments.
Indiana has its own state standard deduction separate from the federal standard deduction ($15,750 single, $31,500 MFJ in 2026). For precise Indiana state deduction amounts, consult the Indiana Department of Revenue or a state tax professional.
Indiana's 3.05% flat rate state income tax can be compared to other states using our state tax calculator above. The U.S. average top marginal state income tax rate is approximately 5-6%. Nine states have no income tax at all (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming), while California has the highest at 13.3%.
Indiana offers state tax credits and deductions that may reduce your state tax liability. Common state credits include earned income credits, child tax credits, and credits for the elderly. Consult the Indiana Department of Revenue website or a licensed tax professional for credits specific to your situation and income level.
Use the calculator above. Enter your income and IN is pre-selected as your state. The calculator computes your 2026 federal income tax using the One Big Beautiful Bill Act brackets (10%-37%), adds your estimated Indiana state income tax (3.05% flat rate simplified), and displays your total tax burden, combined effective rate, and annual take-home pay. All calculations happen instantly in your browser.