Indiana Income Tax

Indiana uses a flat income tax rate applied to all taxable income. Combined with federal tax, this determines your total income tax burden.

Why It Matters

Understanding Indiana's income tax structure helps you accurately estimate take-home pay, compare compensation across states, and plan for your total tax burden.

Try the calculator

Open Indiana Income Tax Calculator →

How It Works

The calculator computes both your federal and Indiana state income tax to show your combined tax burden. Enter your taxable income to see the breakdown.

Example

A single filer with $75,000 in taxable income in Indiana pays $2,250 in state income tax (flat 3.00% rate), plus $11,414 in federal tax. Total combined: $13,664 — a combined effective rate of 18.2%.

Resources

Indiana Tax Authority

Official Indiana state tax information, forms, and filing resources.

Source: Indiana Department of Revenue

Frequently Asked Questions

Does Indiana have a standard deduction?

Indiana's deduction rules vary. Some flat-tax states conform to the federal standard deduction, while others have their own. Check your state tax authority for details.

Is Indiana's income tax in addition to federal tax?

Yes. You pay both federal income tax (progressive brackets up to 37%) and Indiana's flat 3.00% state income tax. This calculator shows both combined for your total tax burden.

What is Indiana's income tax rate?

Indiana has a flat income tax rate of 3.00% applied to all taxable income regardless of how much you earn.

Key Terms

Effective Tax Rate

The average rate you actually pay across all your income — total tax divided by total income.

Marginal Tax Rate

The tax rate applied to your last dollar of income — the highest bracket you reach.

Standard Deduction

A fixed amount subtracted from gross income before tax brackets are applied — used by about 90% of filers.

Taxable Income

Your gross income minus deductions — the amount that tax brackets are applied to.

Next review: 2027-01-15 • Applies to tax year: 2025