Indiana Income Tax Brackets 2026
What are the Indiana income tax brackets for 2026?
Indiana has no bracket ladder in 2026: one flat rate of 2.95% applies to state taxable income, after a standard deduction of $0 single ($0 married filing jointly) and any personal exemption. On a $75,000 salary, a single filer pays $2,183 of Indiana income tax.
Indiana keeps its 2026 income tax simple: a flat 2.95% rate on taxable income, with a standard deduction of $0 for single filers and $0 for married filing jointly.
Updated October 29, 2026
Indiana brackets for single filers, 2026
Rates apply to Indiana taxable income: gross pay minus the standard deduction and any personal exemption. In Indiana the schedule fills from the bottom up: the single rate of 2.95% applies across taxable income, with no higher bracket waiting at any salary.
| Taxable income (single) | Rate |
|---|---|
| $0 and up | 2.95% |
Indiana brackets for married filing jointly, 2026
| Taxable income (joint) | Rate |
|---|---|
| $0 and up | 2.95% |
Standard deduction and exemption in Indiana
The 2026 standard deduction is $0 for single filers and $0 for married filing jointly. Indiana also allows a personal exemption of $1,000 for single filers and $2,000 for joint filers, which comes off taxable income alongside the standard deduction. In Indiana, that means the first $1,000 of a single filer's pay is taxed at zero before the schedule even starts.
Worked example: the brackets on a $75,000 salary
A single filer earning $75,000 in Indiana first removes the standard deduction and personal exemption, leaving $74,000 of taxable income. Each bracket then takes its slice:
| Bracket range | Income in bracket | Rate | Tax |
|---|---|---|---|
| $0 and up | $74,000 | 2.95% | $2,183 |
Total Indiana income tax: $2,183, an effective rate of 2.91% of gross pay. The marginal rate, the rate on the next dollar Indiana taxes, is 2.95%; a raise that crosses into that bracket pays 2.95% only on the dollars above the line, never on the whole salary.
Indiana income tax on common salaries (single filer)
| Gross salary | Indiana income tax | Effective rate | Marginal rate |
|---|---|---|---|
| $40,000 | $1,151 | 2.88% | 2.95% |
| $50,000 | $1,446 | 2.89% | 2.95% |
| $75,000 | $2,183 | 2.91% | 2.95% |
| $100,000 | $2,921 | 2.92% | 2.95% |
| $150,000 | $4,396 | 2.93% | 2.95% |
How Indiana compares with other states
How Indiana compares: on a $75,000 salary, the $2,183 a single filer pays ranks 38th highest among the 42 states and districts that tax wages in 2026, just behind Rhode Island at $2,196 and just ahead of Louisiana at $1,864.
A flat rate makes the marginal math unusually clean: every extra $1,000 of taxable income in Indiana adds exactly $30 of tax, no matter which end of the pay scale it lands on. A single filer's Indiana tax bill passes $1,000 at a gross salary of about $34,898, once the standard deduction has done its work.
To turn these figures into an actual paycheck, use the Indiana income tax calculator for any salary, or the Indiana take-home pay calculator to see the same salary after federal tax and FICA as well. Per pay period, the paycheck calculator breaks the Indiana result down further, and the state tax brackets hub lines up all 50 states and DC side by side.
Frequently asked questions
What is the Indiana income tax rate in 2026?
Indiana charges a flat 2.95% on state taxable income in 2026. There are no graduated brackets: the same rate applies from the first taxable dollar to the last.
What is the standard deduction in Indiana for 2026?
The standard deduction is $0 for single filers and $0 for married filing jointly. A personal exemption of $1,000 single and $2,000 joint also applies.
How much Indiana income tax is owed on $75,000?
A single filer earning $75,000 pays $2,183 of Indiana income tax for 2026 in this model, an effective rate of 2.91% of gross pay.
Does Indiana have local income taxes on top of the state rate?
Some states and cities add local income taxes. This page models the state tax only; check whether your city or county in Indiana levies its own wage tax.