Indiana State Income Tax Overview
Indiana (IN) state income tax rate: 3.05% flat (flat rate system)
Indiana Income Tax Brackets (2026)
Flat 3.05% on adjusted gross income (2024; reduced from 3.23% in 2023, with further reductions to 2.9% by 2027)
Indiana has been steadily reducing its flat income tax rate. The rate was cut from 3.23% to 3.05% in 2024, with a roadmap to reach 2.9% by 2027. Indiana counties also impose additional income taxes of 0.5%–2.9%, depending on county of residence.
Median Household Income in Indiana
The median household income in Indiana is $58,235. Indiana's median income is modestly below the national average. The combination of low income tax rates, relatively low cost of living, and strong manufacturing base makes Indiana a competitive state for middle-income households.
How to Use This Calculator for Indiana
- Enter your gross income and filing status
- The calculator applies Indiana's flat income tax rate of up to 3.05% flat
- Subtract your standard deduction and any applicable credits
- Review your estimated state and federal tax liability
Frequently Asked Questions
What is the Indiana state income tax rate?
Indiana has a flat income tax with a top rate of 3.05% flat. Flat 3.05% on adjusted gross income (2024; reduced from 3.23% in 2023, with further reductions to 2.9% by 2027).
How does Indiana's income tax compare to the national average?
Indiana's top income tax rate of 3.05% flat applies to a flat rate system. Indiana has been steadily reducing its flat income tax rate. The rate was cut from 3.23% to 3.05% in 2024, with a roadmap to reach 2.9% by 2027. Indiana counties also impose additional income taxes of 0.5%–2.9%, depending on county of residence.
What is the median household income in Indiana?
The median household income in Indiana is $58,235. Indiana's median income is modestly below the national average. The combination of low income tax rates, relatively low cost of living, and strong manufacturing base makes Indiana a competitive state for middle-income households.
Is this state income tax calculator free to use for Indiana?
Yes, this state income tax calculator is 100% free with no signup required. It includes Indiana-specific tax rates and calculates your estimated state and federal tax liability instantly.