Easily estimate take home pay after income tax so you can have an idea of what to possibly expect when planning your budget
Income Before Tax
Take Home Pay
Average Tax Rate
$ = US Dollar
Income Before Tax
Federal Income Tax
State Income Tax
State Tax Credits
State Disability Insurance
State Paid Family and Medical Leave (PFML)
State Unemployment Insurance
State Worker Comp
State Transit Tax
Mental Health Services Tax
Average Local Income Tax
Take Home Pay
Average Tax Rate
Table of Contents
Enter your employment income into the paycheck calculator above to estimate how taxes in Indiana, USA may affect your finances. You'll then get your estimated take home pay, an estimated breakdown of your potential tax liability, and a quick summary down here so you can have a better idea of what to possibly expect when planning your budget.
This paycheck calculator also works as an income tax calculator for Indiana, as it shows you how much income tax you have to pay based on your salary and personal details.
To learn more about Indiana, its income tax, and tax brackets, so that you can get a deeper understanding of how your budget and finances may be affected, scroll down to the detail section below!
Frequently Asked Questions
What is the income tax rate in Indiana?
The state income tax rate in Indiana is over 3% while federal income tax rates range from 10% to 37% depending on your income. This paycheck calculator can help estimate your take home pay and your average income tax rate.
How many income tax brackets are there in Indiana?
The state income tax system in Indiana only has a single tax bracket. However, there are multiple tax brackets for federal income tax. For more details, check out our detail section.
How Your Indiana Paycheck Works
Your paycheck in the Hoosier State is affected by four types of taxes: state income tax, local income tax, federal income tax, and FICA taxes. The amount of each tax depends on various factors, such as your income level, filing status, location, and more.
First and foremost, you have to pay Indiana state income tax, which is a flat rate of 3.23% for everyone. This means that no matter how much you earn or what your filing status is, you pay the same percentage of your income to the state. Make sure to fill out your Indiana Form WH-4 properly when you start a new job or have a change in your personal or financial situation. This way, your employer is able to figure out how much state tax to withhold.
In addition to state income tax, you also have to pay local income tax depending on where you are in Indiana. These are imposed on the county level and rates for these vary from 0.5% to 2.9%. You don’t have to fill out a separate form for county taxes, as they are withheld from your paycheck along with state taxes.
The federal government also expects a cut and that's where federal income tax comes into play. This is based on your income level, filing status, and other factors. You can adjust your federal withholding by filling out Form W-4, which is federal equivalent of the state one.
There's also the FICA taxes, which are federal taxes that fund Social Security and Medicare programs. The Social Security tax rate is 6.2% and the Medicare tax rate is 1.45%, for a total of 7.65%. These taxes are applied to your gross income, which is your total income before any withholdings or taxes are taken out. If you earn more than $147,000 in 2022, you don’t have to pay Social Security tax on the excess amount. If you earn more than a separate limit, you have to pay an additional 0.9% Medicare surtax. Your employer will match your FICA taxes aside from the Medicare surtax.
Voluntary withholdings are amounts that you choose to have withheld from your pay for various purposes. Some of the most common voluntary ones are for health insurance, retirement savings, or charitable contributions.
Health insurance withholdings are for premiums that you pay to enroll in a health plan offered by your employer or a third-party provider.
Retirement savings withholdings are for contributions that you make to a retirement account such as a 401(k), IRA, or Roth IRA.
You might also have charitable contributions as donations that you make to qualified organizations such as churches, schools, or nonprofits.
These may reduce your taxable income and lower your tax liability, depending on the type and amount of the contribution. You can usually change or cancel your voluntary withholdings at any time by notifying your employer or the provider.
When you go to file your taxes at the end of the year, a state standard deduction will be available in the form of a personal exemption and varies based on your filing status.
More From Investomatica:
For sales tax, please visit our Indiana Sales Tax Rates and Calculator page.
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- The content shown on this page is strictly for educational purposes only. It does not represent advice nor is it a substitute for a professional advisor.
- Estimated results are just estimates. They are not a guarantee of future results.
- Tax situations vary widely and calculations can get very complex. This paycheck calculator only provides a rough estimate according to the most common scenarios for standard employment income that comes from an employer. If you are self-employed, your taxes might differ.
- There may be additional deductions, credits, exemptions, allowances, reliefs, etc depending on many factors. Some factors are about your family such as the number of dependents, children, relatives, parents, etc. Other factors may include mortgage payments, property depreciation, charitible donations, additional voluntary retirement contributions, etc. Whether or not you are handicapped and/or disabled may also sometimes be an additional factor.
- Depending on region and jurisdiction, salary bonuses may be treated and taxed differently from standard salary.
- Calculators from other sites may show slightly different numbers due to different deductions/credits being included or they are based on data from a different year.
- Generally, we review changes once a year since tax codes usually change once a year. If you notice a major miscalculation or error with our paycheck calculator (most likely caused by a typo somewhere), feel free to direct message us on twitter and let us know. However, if you have specific questions about your own personal situation, please consult a licensed tax professional.
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