Indiana Income Tax Guide

Flat 2.95% state rateIndiana's official 2026 individual adjusted-gross-income tax rate is 2.95%.

$1,000 base exemptionThe calculator includes taxpayer, eligible joint-spouse, and basic dependent exemptions.

County income taxes varyUse the optional local-rate input with the applicable county percentage.

Updated August 24, 2026

Official SourcesIndiana rates Indiana return guide Indiana tax types IRS

Indiana rates Indiana return guide Indiana tax types IRS

Federal AGI starts the returnIndiana begins with federal adjusted gross income and then applies state additions, deductions, and exemptions.

Basic exemptions are includedThe estimate subtracts $1,000 for the taxpayer, another $1,000 on a joint return, and $1,000 per supported dependent.

The 2.95% rate is appliedIndiana's 2026 state rate is applied to the calculator's simplified Indiana taxable-income estimate.

County income tax is manualRates vary by county and can change; enter the relevant rate rather than relying on an inferred location.

Special deductions and credits are excludedAdoption, child, elderly, military, and other Indiana provisions require more information.

Did Indiana's rate fall for 2026?Yes. Indiana DOR lists a 2.95% state individual rate for 2026.

Is county tax included automatically?No. Use the optional local-rate field with the current county rate that applies to you.

Are enhanced child exemptions included?No. The calculator includes only the basic $1,000 dependent amount, not every child or adoption enhancement.

What about reciprocity?Indiana has wage reciprocity with several neighboring states, but nonresident filing and withholding refunds are not modeled.

Which county determines the rate?Residence and employment rules can matter, so confirm the applicable county under Indiana guidance.

Is this Form IT-40?No. It is a planning estimate, not a full state and county return calculation.

Indiana Income Tax Guide

How Indiana taxes work

Common Indiana tax questions