State income tax · Indiana
Indiana income tax rates
Indiana's income tax on wages: the rate structure, the brackets and the source for each figure.
Data: Tax year 2026 (where a state has not published 2026 brackets yet, its latest published year, labelled on the row) Sources read Review by
CheckedOct 19, 2026These are the figures for tax year 2026.
- Structure
- Flat rate
- Top rate
- 2.95%
- Local income taxes
- Yes, in some localities
Brackets
One rate applies to all taxable income, which is the state's own measure after its deductions and exemptions.
| Taxable income over | Rate on income above that amount |
|---|---|
| $0 | 2.95% |
Notes
Indiana's state adjusted gross income tax rate for individuals is a flat 2.95% for 2026. All 92 counties also levy a local income tax on residents (or on nonresidents working in the county), withheld by employers at county-specific rates.
Sources
We read each source on the date shown and quote the line we relied on.
- Departmental Notice #1, How to Compute Withholding for State and County Income Tax (effective Oct. 1, 2026) (external site)
For 2026, the state adjusted gross income tax rate for individuals is 2.95%.