Indiana Salary Paycheck Calculator
Are you interested in understanding your take-home pay in Indiana? Our Indiana Salary Paycheck Calculator provides a precise estimate of your net income after deductions. Whether you’re a current resident or considering relocating to the Bay State, knowing how your paycheck is distributed can help you manage your finances effectively
Gross To Net Calculator
The amount that remains after these deductions are considered your net pay.
Indiana Taxes: What You Need to Know
The Indiana tax system encompasses federal, state, and local tax obligations. Indiana imposes a flat state income tax rate, set to decrease from 3.15% in 2023 to 3.05% in 2024. Additionally, residents may be subject to varying local income taxes depending on their county of residence.
Here’s a brief overview of the Indiana’s tax components in Indiana:
Federal, State, and Local Tax Withholding
- Federal Tax: Based on your income bracket, ranging from 10% to 37%.
- State Tax: Indiana has a flat state income tax rate of 3.15% for 2023, which will decrease to 3.05% in 2024.
- Local Tax: Many counties in Indiana also levy local income taxes, which vary by county.
FICA & State Insurance Taxes
- FICA Taxes: This includes Social Security tax (6.2%) and Medicare tax (1.45%), totaling 7.65% of your income.
- State Insurance Taxes: These can include unemployment insurance and workers’ compensation, which vary by employer and state regulations.
Pre-Tax Deductions
- Medical Insurance: Premiums for employer-sponsored health insurance plans are typically deducted pre-tax.
- 401(k) Contributions: Contributions to a 401(k)-retirement plan are also deducted pre-tax, reducing your taxable income.
Tax Percentage Information Table
| Tax Type | Percentage Rate |
| Federal Income Tax | 10% – 37% |
| State Income Tax | 3.15% (2023), 3.05% (2024) |
| Local Income Tax | Varies by county |
| Social Security Tax | 6.2% |
| Medicare Tax | 1.45% |
| Medical Insurance | Varies (Pre-Tax) |
| 401(k) Contributions | Varies (Pre-Tax) |
Now, let’s have a detailed look at how Indiana’s tax system and the divisions:
Income Tax
Indiana has a flat state income tax rate, which means everyone pays the same percentage of their income, regardless of how much they earn. For 2024, the rate is 3.05%. This rate is set to decrease gradually over the next few years, reaching 2.9% by 2027. This flat tax system simplifies filing and ensures everyone contributes a fair share.
Sales Tax
Indiana’s state sales tax rate is 7%. This tax applies to most goods and services, making it a significant source of revenue for the state. However, essential items like groceries and prescription medications are exempt from this tax, helping to reduce the burden on lower-income families.
Property Tax
Property taxes in Indiana are relatively high compared to other states. These taxes are based on the assessed value of your property and are used to fund local services like schools, police, and fire departments. Indiana has a property tax cap system, which limits the amount of property tax that can be charged to 1% of the home’s assessed value for owner-occupied residences, 2% for rental properties, and 3% for business properties. This cap helps prevent property taxes from becoming too burdensome.
Corporate Tax
Indiana’s corporate tax rate is 4.9% as of 2024. This rate is competitive compared to other states, making Indiana an attractive business place. The state also offers tax incentives and credits to encourage business investment and job creation.
Other Taxes
- Gasoline Tax: Indiana imposes a tax on gasoline, which helps fund transportation infrastructure projects. The current rate is 33 cents per gallon.
- Cigarette Tax: There is also a tax on cigarettes, which is $1 per pack. This tax is intended to discourage smoking and help cover healthcare costs associated with tobacco use.
Tax Credits and Deductions
Indiana offers several tax credits and deductions to help reduce residents’ tax burdens. These include credits for college tuition, adoption expenses, and contributions to IIndiana’s College Choice 529 education savings plan. Additionally, there are deductions for elderly or blind residents, military service members, and renters.
Median household income in Indiana
Indiana’s median household income in 2023 was 76,910 dollars. The median household income in the state increased from 70,030 U.S. dollars the previous year.
Indiana Tax Brackets 2024
Indiana’s tax system features a flat income tax rate of 3.05% for residents, with county income taxes ranging from 0.5% to 3.38%. The state sales tax is 7%, exempting essential items like groceries and prescriptions. Property taxes are capped at 1% for owner-occupied homes, 2% for rentals, and 3% for businesses. Local taxes depend on the taxpayer’s county of residence or employment. Indiana also offers credits like the Earned Income Credit for qualifying taxpayers.
Income Limits for Indiana Earned Income Credit (IN-EIC)
To qualify for the Indiana EIC, taxpayers must meet specific income limits based on the number of qualifying children living with them. The following table summarizes these limits:
| Number of Qualifying Children | Income Limit |
| No Children | Less than $15,900 |
| One Child | Less than $42,100 |
| Two or More Children | Less than $47,900 |
Additional Criteria
- Taxpayers must be between 24 and 65 years old.
- Dependents must be under 19 years old (or under 24 if they are full-time students).
The maximum Indiana EIC available for eligible taxpayers is $538.
For 2024, Indiana maintains a flat income tax rate system, simplifying the tax filing process for single and married filers. Here are the details:
Income Tax Rates for 2024
| Filing Status | Tax Rate | County Income Tax |
| Single | 3.05% | Varies by county (0.5% – 3.38%) |
| Married (Joint) | 3.05% | Varies by county (0.5% – 3.38%) |
In addition to the state income tax, Indiana residents are also subject to county income taxes, which vary by county. These rates range from 0.5% to 3.38%.
Standard Deductions and Exemptions
- Personal Exemption: $1,000 per qualifying filer and dependent.
- Additional Deductions: Indiana offers various deductions and credits, such as those for college tuition, adoption expenses, and contributions to Indiana’s CollegeChoice 529 plan.
Frequently Asked Questions
Yes, the Indiana Paycheck Calculator does account for local taxes. Indiana has county income taxes that vary by county, ranging from 0.5% to 3.38%. You can input your county of residence to ensure accurate calculations.
Indiana offers several state-specific deductions and credits, including:
- College Tuition Credit: For tuition paid to Indiana colleges.
- Adoption Credit: For expenses related to adopting a child.
- 529 College Savings Plan Credit: For contributions to Indiana’s CollegeChoice 529 plan.
- Deductions for Elderly or Blind Residents: Additional deductions for qualifying individuals.
Yes, KEKAeka Indiana Paycheck Calculator is updated for the latest tax laws for 2024. It incorporates the most recent federal, state, and local tax rate changes for accurate calculations.
Indiana’s state tax system is simpler, with a flat income tax rate of 3.05%. In contrast, federal taxes are progressive, with rates increasing as income increases. Federal tax deductions can significantly reduce taxable income, while Indiana offers specific credits and deductions to lower your state tax liability.
You can enter the combined income from all sources into the calculator to account for multiple jobs or additional income sources. Adjust the withholding allowances and additional withholdings to reflect your total income accurately. For a more streamlined experience, consider using Keka’s payroll softwarecalculator, which can handle multiple income sources and provide detailed breakdowns.
Pre-tax deductions such as health insurance premiums or retirement contributions should be entered into the Indiana Paycheck Calculator. These deductions reduce your taxable income, resulting in lower tax liability. Keka’s payroll software can automatically account for these pre-tax deductions, ensuring accurate net pay calculations.
When filing jointly with your spouse, select the “Married Filing Jointly” status in the Indiana Paycheck Calculator. This will adjust the tax brackets and standard deductions accordingly. Keka’s payroll software can also accommodate joint filings, making managing your household’s finances more manageable.
