The formulas
- Taxable income = income - standard deduction - personal exemptions (when applied), not below zero
- Tax = 2.95% x Indiana AGI less exemptions
- Exemption $1,000 per filer
- Indiana income tax = tax from the rate schedule
How it works
Tax year: 2026.
Indiana taxes income at a flat 2.95%. Enter income before state deductions and choose whether to apply the state standard deduction and personal exemptions, or enter taxable income and switch them off. The tool computes state income tax only; credits other than those named are not applied.
Indiana's adjusted gross income tax rate is 2.95 percent for 2026 and falls to 2.90 percent in 2027. Indiana has no standard deduction; each filer and dependent claims a $1,000 exemption, and a qualifying dependent child adds $1,500 more (dependents not applied here).
Local taxes: Every Indiana county levies a local income tax on residents and on people who work there; rates are set by each county and listed in Departmental Notice 1. It is not included.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
What is the Indiana income tax rate for 2026?
Indiana taxes income at a flat 2.95% for 2026. Tax = 2.95% x Indiana AGI less exemptions.
Does Indiana have a standard deduction?
No. Indiana has no standard deduction of its own.
Are there local income taxes in Indiana?
Every Indiana county levies a local income tax on residents and on people who work there; rates are set by each county and listed in Departmental Notice 1. It is not included.
Sources
- Indiana DOR, rates, fees and penalties
- Indiana DOR Departmental Notice 1 (state and county withholding, exemptions)
Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.