Indiana uses a flat state income tax of 3.0% in 2026 — the same rate applies to every dollar of taxable income, which makes your paycheck easy to predict. On a $75,000 salary, a single filer pays about $2,213 in state tax and takes home roughly $59,380 a year (about 79.2% of gross) after federal, state, and FICA withholding.

Indiana's 3.0% rate is below the 4.8% average among states that tax wage income. Because the rate is flat, a raise never pushes part of your income into a higher state bracket — every extra dollar is taxed at the same 3.0%, unlike the federal system where higher earnings hit progressively higher brackets.

Remember that FICA is separate from income tax and is not affected by your state. Every worker pays 6.2% for Social Security on the first $184,500 of wages (the 2026 wage base) plus 1.45% for Medicare on all wages. Pre-tax 401(k) and HSA contributions lower your federal and state income tax but do not reduce FICA — a detail that trips up a lot of first-time budgeters.

Indiana's headline flat rate is only part of the story: every one of Indiana's 92 counties levies its own local income tax on top, typically in the 1–3% range, withheld based on the county where you lived on January 1. That means two Hoosiers with identical salaries can have noticeably different take-home pay depending on county. The state rate itself is on a legislated glide path downward through the late 2020s.