Indiana income tax and brackets 2026
Indiana taxes income at one flat rate of 2.95% in 2026. A single filer earning $75,000 in Indiana owes about $11,311 in federal, state and local income tax, an effective rate of 15.1%.
Income tax · 2026
See the brackets $11,311for the year
Effective rate 15.1% of income
Federal income tax$7,67067.8%
Indiana income tax$2,18319.3%
County income tax$1,45812.9%
Taxable income
$58,900
Top federal rate
22%
Top Indiana rate
4.92%
Indiana tax brackets 2026
Indiana brackets · 2026
2.95%flat rate
One flat rate
Rate
2.95%
Taxable income
$74,000
Tax
$2,183
Indiana brackets, single
| Rate | Taxable income | Tax owed |
|---|---|---|
| 2.95%You | All taxable income | 2.95% of taxable income |
Indiana at a glance
- Income tax
- 2.95% flat
- Personal exemption
- $1,000
- State payroll taxes
- None
- County income tax
- 0.5% to 3.0%
- Sales tax
- 7%
- 2026 return due
- Apr 15, 2027
How we work it out
- 1IncomeYour income for the year, less pre-tax retirement savings.
- 2DeductionThe larger of the standard deduction and your itemized total.
- 3Federal bracketsEach rate from 10% to 37% taxes only the income inside it.
- 4IndianaIndiana's own deduction and rates on the same income.
- 5Effective rateYour total tax divided by your income.
Indiana income tax questions
What are the Indiana tax brackets for 2026?
Indiana has one flat rate of 2.95% on taxable income, so every taxable dollar pays the same rate.
How much income tax do I pay on $75,000 in Indiana?
A single filer earning $75,000 owes about $7,670 in federal income tax, $2,183 in Indiana income tax and $1,458 in local tax for 2026, $11,311 in all. That is 15.1% of income.
Why is my average rate lower than my tax bracket?
Each rate taxes only the income inside its bracket. A single filer with $58,900 of federal taxable income is in the 22% bracket, but only the $8,500 above $50,400 pays 22%. The lower rates tax the rest, so the brackets come to $7,670, 13.0% on average.
What are the 2026 federal tax brackets?
Seven rates: 10%, 12%, 22%, 24%, 32%, 35% and 37%. The 37% rate starts above $640,600 for single filers and above $768,700 for married couples filing jointly.
Will Indiana's brackets change?
Flat rate set in law and stepping down: 3.0% in 2025, 2.95% in 2026, 2.9% scheduled for 2027.
What is the 2026 standard deduction?
$16,100 for single filers, $32,200 for married couples filing jointly and $24,150 for heads of household. Indiana gives a $1,000 personal exemption instead.
Sources
- IRS Revenue Procedure 2025-32: 2026 brackets and standard deduction
- Social Security Administration: 2026 contribution and benefit base
- IRS Notice 2025-67: 2026 retirement plan limits
- Indiana Department of Revenue
- Indiana DOR Departmental Notice #1 (effective October 1, 2026): 2026 state rate 2.95%, all 92 county rates, $1,000 exemptions
- Tax Foundation, State Individual Income Tax Rates and Brackets, 2026
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