Tax Bracket Calculator for Indiana (IN) — Free Calculator

Indiana Tax Brackets (2026)

Indiana uses a flat income tax system with a top marginal rate of 3.05% flat.

Indiana Bracket Structure

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.

Federal Tax Brackets Still Apply to Indiana Residents

Regardless of Indiana's state tax rules, all residents pay federal income tax. Federal brackets for 2024 range from 10% (on income up to $11,600 for single filers) to 37% (on income over $609,350). Your effective federal rate is typically well below the top marginal rate due to the graduated bracket structure.

Effective vs. Marginal Rate in Indiana

Your marginal rate is the rate on your last dollar of income. Your effective rate is your total tax divided by total income. For Indiana residents the marginal rate can reach 3.05% flat but most filers pay a lower effective rate. The median household income in Indiana is $58,235.

Data: Tax Foundation (2024), IRS Statistics of Income, US Census Bureau ACS 2023. Updated 2024–2025. Figures reflect state averages — consult a licensed CPA for personalized tax advice.

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Frequently Asked Questions

What tax brackets apply to Indiana residents?

Indiana has a flat income tax system. Flat 3.05% on adjusted gross income (2024; reduced from 3.23% in 2023, with further reductions to 2.9% by 2027). Federal brackets also apply on top of the state tax.

What is the difference between marginal and effective tax rate in Indiana?

Your marginal rate is the rate on your highest dollar of income. Your effective rate is your total tax burden divided by total income. In Indiana, even if the top marginal rate is 3.05% flat, most residents pay a lower effective rate because lower income portions are taxed at lower brackets.

Does Indiana have different tax brackets for married filers?

Yes, Indiana typically has different bracket thresholds for single vs. married filing jointly filers. Married joint filers often have brackets approximately twice as wide, reducing the marriage penalty. Check the Indiana Department of Revenue for current bracket tables.

How does this tax bracket calculator work for Indiana?

Enter your income and filing status. The calculator applies both federal and Indiana state tax brackets to show your marginal rate, effective rate, and total estimated tax. Indiana's flat rate of up to 3.05% flat is applied to your state taxable income.