Indiana Income Tax Calculator - Estimate Indiana State and County Income Tax
Enter your federal adjusted gross income, tax year, exemptions, and county into the Indiana income tax calculator to see Indiana adjusted gross income and the combined flat state and county tax.
Indiana Income Tax Calculator
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What Is Indiana Income Tax Calculator?
The Indiana income tax calculator estimates your state and county income tax from your federal adjusted gross income. Indiana uses a single flat state rate plus a county income tax, so your total bill depends on where you live and how many exemptions you claim. Enter your federal AGI, tax year, exemptions, and county to see the combined estimate.
- • Before filing an Indiana return: Project the state and county tax you will owe on your IT-40 before you file.
- • Comparing counties: See how moving from a low-rate county to a high-rate county changes your total tax.
- • Modeling the 2025 exemption change: Compare 2024, when a $1,000 per-exemption allowance applied, against 2025 and 2026, when it is gone.
- • Second-home or relocation planning: Estimate Indiana tax if you are considering a move from a neighboring state.
Indiana is one of the few states that adds a county income tax on top of a flat state rate. That second layer is roughly half of what many Hoosiers pay, so any estimate that ignores it understates the real bill by a wide margin.
For a neighbor with a similar flat structure, the Colorado income tax calculator shows how a single state rate without a county layer produces a simpler total.
How Indiana Income Tax Calculator Works
The tool converts federal AGI into Indiana adjusted gross income, then multiplies that base by the flat state rate and your county rate.
- Federal AGI: Your federal adjusted gross income from your federal return, used as the Indiana starting point.
- Exemptions: Number of personal exemptions claimed; each was worth $1,000 in 2024 and $0 from 2025 onward.
- State rate: Flat Indiana rate: 3.05% in 2024, then 3.00% in 2025 and 2026.
- County rate: Local rate set by your county of residence on January 1, ranging from 0.50% to 3.00%.
Because Indiana adds the county rate to the same base, the effective rate is simply the flat state rate plus your county rate once exemptions are accounted for.
Marion County single filer, 2024
Federal AGI $60,000, 1 exemption, Marion County (2.02% county rate).
Exemption allowance = 1 * $1,000 = $1,000. Indiana AGI = $60,000 - $1,000 = $59,000. State tax = $59,000 * 3.05% = $1,799.50. County tax = $59,000 * 2.02% = $1,191.80.
Total Indiana income tax = $2,991.30.
The county portion is about 40% of the combined bill, which is why the county choice matters as much as the rate year.
Your federal AGI is the figure produced by the federal income tax calculator, so estimate that first if you have not yet filed your federal return.
The Indiana Code sets the flat state individual income tax rate and the personal exemption allowance applied to Indiana adjusted gross income.
Key Concepts Explained
Four ideas explain why Indiana's total tax looks the way it does.
Flat state rate
Indiana applies one state rate to all income, so every dollar of Indiana AGI is taxed equally. The rate stepped down from 3.05% in 2024 to 3.00% for 2025 and 2026.
County income tax
Each of Indiana's 92 counties sets its own rate, charged in addition to the state rate. Your county is locked in by where you live on January 1 of the tax year.
Exemption allowance
Indiana subtracts a per-exemption allowance from federal AGI to reach Indiana AGI. It was $1,000 per exemption through 2024 and was reduced to $0 for 2025 and later.
Indiana adjusted gross income
This is the base both taxes hit. It is federal AGI minus the exemption allowance, and it drives every dollar of state and county tax.
The exemption phase-out is the single biggest year-over-year change in the estimate. A household that claimed two exemptions in 2024 loses $2,000 of base that year but pays on full AGI from 2025 onward.
If you need to build the starting number, the AGI calculator walks through the adjustments that arrive at your adjusted gross income.
IRS Publication 17 explains how federal adjusted gross income is computed on the federal return, which Indiana uses as its starting point.
How to Use This Calculator
Follow these steps to produce a reliable estimate.
- 1 Pick your tax year: Choose 2024, 2025, or 2026 to set the flat state rate and the exemption amount.
- 2 Enter federal AGI: Use the adjusted gross income from your federal return, before any itemized deductions.
- 3 Enter exemptions: Count the personal exemptions you claim. In 2025 and 2026 this value no longer reduces the base.
- 4 Choose your county: Select the county where you lived on January 1 of the tax year to load the correct county rate.
- 5 Review Indiana AGI: Confirm the exemption allowance was subtracted correctly before the rates are applied.
- 6 Read the combined total: Note the separate state and county amounts and the effective rate as a share of federal AGI.
An Allen County resident with $75,000 federal AGI and one exemption in 2026 enters those values: exemption amount is $0, so Indiana AGI is $75,000; state tax is $2,250 (3.00%) and Allen County tax is $1,192.50 (1.59%), for a $3,442.50 total.
For ongoing withholding rather than an annual estimate, the Indiana paycheck calculator models the same rates per pay period.
Benefits of Using This Calculator
This Indiana income tax calculator helps Hoosiers plan around both tax layers.
- • Full two-layer estimate: It combines the flat state rate and your county rate, which most quick estimators leave out.
- • Year-over-year comparison: Switching tax years shows the effect of the rate drop and the exemption phase-out at once.
- • Relocation insight: Comparing counties reveals how local rates change your take-home pay after a move.
- • Clear effective rate: The effective rate as a share of federal AGI makes Indiana easy to compare with other states.
- • Audit of the base: Showing Indiana AGI separately makes it obvious how exemptions shift the taxable base.
Because filing status no longer affects Indiana's base the way federal brackets do, the marriage penalty calculator is more useful for the federal side than for Indiana itself.
Factors That Affect Your Results
Several inputs move the estimate meaningfully.
County of residence
County rates span 0.50% to 3.00%, so the local layer alone can swing your total by more than 2.5 percentage points.
Tax year
The flat state rate falls from 3.05% in 2024 to 3.00% in 2025 and 2026, changing the tax on identical income.
Exemption allowance
The $1,000 per-exemption allowance applies only in 2024, so 2025 and 2026 estimates start from full federal AGI.
Federal AGI level
Because the tax is proportional, a higher AGI scales both state and county tax up by the same percentage.
- • This estimates individual income tax before credits and other add-ons; Indiana credits on the return can still lower the amount you actually pay.
- • Local option income taxes and certain additions or subtractions are not modeled; the Indiana IT-40 instructions carry the full line-by-line calculation.
If your situation includes property rather than income tax, the Indiana property tax calculator models the separate 1% base-rate system.
The Arizona income tax calculator applies a single flat rate with no county layer, which is a useful contrast when comparing Indiana with a neighboring flat-rate state.
The Indiana Code on county income tax authorizes each county's rate and how it is added to the state tax on the return.
Frequently Asked Questions
Q: What is Indiana's state income tax rate?
A: Indiana uses one flat individual income tax rate. It was 3.05% for tax year 2024 and dropped to 3.00% for tax years 2025 and 2026 under the state's multi-year rate reduction. Every dollar of Indiana adjusted gross income is taxed at that same rate.
Q: How is Indiana taxable income calculated from federal AGI?
A: Indiana starts with your federal adjusted gross income and subtracts a per-exemption allowance to reach Indiana adjusted gross income. The allowance was $1,000 per exemption in 2024 and was reduced to $0 for 2025 and later, so from 2025 onward Indiana AGI equals your federal AGI. Both the state and county rates are then applied to that base.
Q: Do all Indiana counties charge the same income tax?
A: No. Each of Indiana's 92 counties sets its own income tax rate in addition to the flat state rate. The rates range from about 0.50% in Porter County to 3.00% in Pulaski and Randolph counties. Your county rate is based on where you lived on January 1 of the tax year.
Q: What happened to the Indiana personal exemption after 2024?
A: The personal exemption allowance was $1,000 per exemption for tax year 2024. Under the state's tax changes it was eliminated for 2025 and 2026, so claiming exemptions no longer reduces your Indiana adjusted gross income. That means more of your federal AGI is taxed in those years.
Q: Is Indiana income tax flat or progressive?
A: Indiana is flat at the state level: the same rate applies to all income regardless of how much you earn. The only place the rate varies is the county layer, which depends on where you live rather than on your income level.
Q: How does Indiana income tax compare with surrounding states?
A: Indiana combines a low flat state rate with a county income tax, so the combined total depends heavily on your county. Neighboring flat-rate states such as Illinois and Michigan charge a single state rate with no county layer, while states like Kentucky use brackets. The exact combined rate is best compared using each state's own estimator.