Indiana State Income Tax Calculator
Calculate your 2026 Indiana state income tax. See your bracket breakdown, effective rate, and how Indiana compares to neighboring states.
Your Tax Inputs
Effective Rate vs Neighboring States
About Indiana state taxes (Tax year 2026)
Indiana levies a flat income tax of 2.95% on taxable income for 2026, down from 3.05% in 2025 as the state continues a legislated phase-down. Indiana allows no standard deduction; instead it grants a personal exemption of $1,000 per filer and $2,000 for joint filers, plus additional exemptions for dependents. Every Indiana county also levies its own local income tax on top of the state rate, so the combined rate an Indiana resident actually pays depends on the county of residence as of January 1.
Groceries are exempt from sales tax. Prescription drugs are exempt.
Indiana's top income tax rate is 2.95% for tax year 2026. Its combined state and local sales tax averages 7.0%.
Filing in Indiana: returns for tax year 2026 are administered by the Indiana Department of Revenue and are generally filed in 2027 by the federal April deadline unless Indiana declares a state-specific extension. Tax type on this return: Flat. Top marginal rate: 2.95%. State sales-tax rate: 7%. For the most current contact info, see the Federation of Tax Administrators directory.
Indiana — What is Indiana's income tax rate? Indiana levies a flat income tax of 2.95% on taxable income for 2026.
Indiana — Does Indiana tax groceries? No, groceries (unprepared food) are exempt from Indiana's 7% sales tax.
Indiana — What are Indiana county taxes? Every county in Indiana levies its own income tax on top of the 2.95% state rate. These range from 0.5% (several counties) to 2.86% (Pulaski County), and you pay the rate where you live.
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How this page is reviewed
See methodology, assumptions & sources
| Risk tier | High YMYL |
|---|---|
| Author | Calculover Editorial Team Tax education |
| Editorial owner | Calculover Tax & Payroll Desk State-tax methodology owner |
| Reviewer | Calculover Editorial Review Government-source and limitation review |
| Last reviewed | 2026-05-14 |
| Last verified | 2026-05-14 |
| Data effective date | 2026-01-01 |
| Jurisdiction | Indiana |
Methodology
State-tax per-state pages apply the published 2026 bracket schedule, standard deduction, and filing-status rules for the listed jurisdiction. Federal AGI inputs are mapped to state taxable income before bracket math runs. Local taxes (NYC, Philadelphia, certain Ohio cities) are flagged but not embedded in the base estimate.
Assumptions
- The user enters federal AGI, filing status, and state-specific adjustments as provided.
- Brackets, standard deductions, and credits reflect the 2026 statutory values published by the state Department of Revenue and the Tax Foundation.
- Local income taxes and reciprocity-agreement situations are noted but not auto-applied.
Limitations
- These pages do not predict mid-year legislative changes, rate adjustments, or new local tax assessments.
- Multi-state filers, convenience-of-employer rules, and special-circumstance credits require additional tax-professional analysis.
Sources
- State Tax Rates, Federation of Tax Administrators
- State Individual Income Tax Rates and Brackets, Tax Foundation
- State Government Resources, Internal Revenue Service
Professional guidance: This page is for state-tax education only and is not tax, legal, financial, or investment advice. State tax decisions and multi-state filing should be reviewed with a CPA or enrolled agent licensed in the relevant states.