Indiana Income Tax Rates & Brackets — 2026
Indiana taxes individual income at a flat 2.95% in 2026. A single filer on $100,000 owes about $2,921 — an effective rate of 2.92%.
The Indiana tax gauge at $100,000
Indiana
$100,000 · Single · TY2026Indiana tax brackets for 2026
Every filing status, as published by Indiana Department of Revenue. Rates apply to Indiana taxable income — that is income after the deductions and exemptions shown on each card.
Single
Standard deduction None · Personal exemption $1,000| Taxable income | Marginal rate |
|---|---|
| $0 and above | 2.95% |
Married filing jointly
Standard deduction None · Personal exemption $2,000| Taxable income | Marginal rate |
|---|---|
| $0 and above | 2.95% |
Married filing separately
Standard deduction None · Personal exemption $1,000| Taxable income | Marginal rate |
|---|---|
| $0 and above | 2.95% |
Head of household
Standard deduction None · Personal exemption $1,000| Taxable income | Marginal rate |
|---|---|
| $0 and above | 2.95% |
How the maths actually works
Indiana's flat rate applies to taxable income, not to gross income. A single filer on $100,000 first subtracts $1,000 of deductions and exemptions, leaving $99,000 taxable — which is why the effective rate (2.92%) is lower than the statutory 2.95%. Marginal vs effective rate, explained.
What Indiana costs at different incomes
Single filer, standard deduction, no dependents. Rank is out of 50 jurisdictions, lowest tax first.
| Gross income | Taxable income | State tax | Effective rate | Per month | National rank | vs median state |
|---|---|---|---|---|---|---|
| $50,000 | $49,000 | $1,446 | 2.89% | $120 | 26th of 50 | +$1 |
| $75,000 | $74,000 | $2,183 | 2.91% | $182 | 14th of 50 | −$365 |
| $100,000 | $99,000 | $2,921 | 2.92% | $243 | 14th of 50 | −$807 |
| $150,000 | $149,000 | $4,396 | 2.93% | $366 | 14th of 50 | −$1,670 |
| $250,000 | $249,000 | $7,346 | 2.94% | $612 | 14th of 50 | −$3,413 |
| $500,000 | $499,000 | $14,721 | 2.94% | $1,227 | 14th of 50 | −$7,410 |
| $1,000,000 | $999,000 | $29,471 | 2.95% | $2,456 | 13th of 50 | −$15,295 |
Indiana income tax calculator
Change the income, filing status and number of dependents to see the bracket-by-bracket breakdown.
- Income
- $100,000
- Standard deduction
- $0
- Exemptions
- $1,000
- Taxable income
- $99,000
Bracket by bracket
| Taxable income in bracket | Rate | Income taxed | Tax |
|---|---|---|---|
| $0 and above | 2.95% | $99,000 | $2,920.50 |
This estimates state income tax only, using the standard deduction and personal/dependent exemptions. It does not model itemised deductions, most credits, retirement-income exclusions, or local income taxes, and Indiana localities do levy their own income tax. Your actual bill will differ. See how we calculate this and Indiana's full brackets and sources.
Indiana versus its neighbours
State income tax owed by a single filer on $100,000 in 2026.
What changed since 2025
Indiana's income tax changed between 2025 and 2026. A single filer on $100,000 owes $50 less than in 2025.
| 2025 | 2026 | |
|---|---|---|
| Top marginal rate | 3% | 2.95% |
| Structure | flat | flat |
| Standard deduction (single) | None | None |
| Tax on $100,000 (single) | $2,970 | $2,921 |
The 2025 rules are kept in full on the Indiana 2025 tax year page, for amended returns and late filings.
Recent legislated changes
- CutEffective
Indiana's flat individual adjusted gross income tax rate fell from 3.00% to 2.95%; six counties raised their county income tax rates.
Retirement income
How Indiana treats retirement income in tax year 2025. This is verified separately from the rate schedule above and can be for a different tax year.
Indiana allows a deduction for Social Security and railroad retirement benefits included in federal adjusted gross income.
A civil service annuity deduction of up to $16,000 is available from age 62, reduced by all Social Security and Tier 1 Railroad Retirement income received. From 2022 military retirement income and survivor's benefits are fully deductible.
401(k), 403(b) and traditional IRA distributions are taxed as ordinary income.
- Civil service annuity deduction — up to $16,000, from age 62. Lesser of the taxable civil service annuity included in federal AGI or $16,000, less all Social Security and Tier 1 Railroad Retirement income. A surviving spouse may claim it with no minimum age from tax year 2015.
- Military retirement deduction. Entire amount of military retirement income and survivor's benefits, from 2022.
Not modelled: Private pension income has no Indiana deduction and is fully taxable.
Source: Indiana Department of Revenue — Indiana Deductions from Income (retrieved 2026-09-04). Compare every state.
Capital gains
How Indiana taxes a capital gain in tax year 2025. This is verified separately from the rate schedule above and can be for a different tax year.
Indiana taxes a capital gain at the ordinary rates, up to 3%. There is no preferential rate and no general exclusion.
Taxed at the same rates as every other kind of income: the holding period changes nothing.
Indiana starts from federal adjusted gross income and applies its own add-backs and deductions, none of which reaches a capital gain.
Every Indiana county levies its own income tax on top of the state rate, and it reaches a capital gain on the same terms. No county figure is included in the rate here.
Not modelled: The ordinary treatment is established by the absence of any capital gains modification from the state's own complete instructions and subtraction schedule, rather than by an affirmative statement that no preference exists.
Source: Indiana Department of Revenue — Indiana Deductions from Income (retrieved 2026-09-19). Compare every state.
Local income taxes
All 92 Indiana counties levy a local income tax on the same adjusted gross income base as the state tax. Your rate is the rate of the county you resided in on January 1 of the tax year (or, for out-of-state residents, the Indiana county of your principal place of work). Local tax is not included in any figure above.
Local rates typically run 0.5% to 3%.
| Locality | Rate |
|---|---|
| Marion County (Indianapolis) | 2.02% |
| Allen County (Fort Wayne) | 1.59% |
| Lake County | 1.5% |
| Hamilton County | 1.1% |
| Carroll CountyIncreased from 2.2733% effective January 1, 2026. | 2.473% |
| Porter CountyLowest county rate in the state. | 0.5% |
| Randolph CountyHighest county rate in the state. | 3% |
What else to know about Indiana
- Indiana taxes individual income at a single flat rate of 2.95%.
- The flat rate is on a statutory step-down: 3.05% for 2024, 3.00% for 2025, 2.95% for 2026 and 2.90% for 2027.
- Indiana has no standard deduction; it uses flat-dollar exemptions of $1,000 per person plus $1,500 for each qualifying dependent child.
- Every one of Indiana's 92 counties levies its own income tax, from 0.5% (Porter) to 3.0% (Randolph); county tax is assessed on county of residence as of January 1.
- Social Security benefits are not taxed by Indiana; most other retirement income is.
Capital gains
Indiana has no separate capital gains rate; gains in federal AGI are taxed at the flat state rate and at the county rate.
What our figures leave out
Sources
- 1.Indiana Department of RevenueState revenue departmentDepartmental Notice #1, effective Jan. 1, 2026 (R46 / 01-26)Retrieved · "For 2026, the state adjusted gross income tax rate for individuals is 2.95%." Carries the county income tax rate chart for all 92 counties.
- 2.Indiana Department of RevenueState revenue departmentRates, Fees & PenaltiesRetrieved · "The Indiana Individual adjusted gross income tax rate for 2026 is 2.95% and will adjust in 2027 to 2.90%."
Figures on this page were last checked against these sources on . Found something wrong? Report it.