Estimates using federal brackets, FICA and your state rate. Not tax advice.
Indiana uses a flat state income tax rate of 2.95 percent on wages for 2026, down from the 3.05 percent rate that was in place through 2023 as part of a multi-year reduction plan. The flat structure means the same rate applies at every income level, with no graduated brackets.
On a $65,000 salary, Indiana state income tax is about $1,918 per year at the 2.95 percent rate. However, Indiana is one of the few states where a second layer of local tax is essentially universal: all 92 Indiana counties impose their own county income tax on top of the state rate. County rates vary, but most fall between 0.5 percent and 3.0 percent, so your total Indiana income tax withholding will typically run noticeably higher than the state portion alone.
Your county of residence on January 1 determines which county rate applies to your wages for the entire year, even if you later move or work in a different county. The calculator lets you enter the state rate of 2.95 percent as your baseline alongside federal brackets and FICA. To capture your full Indiana tax burden, add your county rate in the local tax field. All figures are estimates, not tax advice.
Compare take-home pay across pay types and periods, or check another state.
Indiana's flat state rate is 2.95 percent for 2026. It applies uniformly to all taxable wages regardless of income level.
Every Indiana county levies its own income tax, with rates ranging from about 0.5 percent to 3.0 percent. Most Hoosiers pay a combined state plus county rate somewhere between 4 percent and 6 percent.
The state portion alone is about $1,918 per year. Adding a typical county rate of around 1.5 percent brings the combined estimate closer to $2,893 before federal taxes and FICA.