Indiana Tax Calculator & Rates 2026

Indiana uses a flat state income tax rate of 2.95% for 2026, stepped down from 3.05% in 2025. In addition, all 92 Indiana counties levy their own income taxes, ranging from 0.50% to 3.38%. Indiana provides a $1,000 personal exemption per person. The state sales tax rate is 7.00% with no local add-ons. Use the calculators below to estimate your Indiana tax liability for 2026.

Indiana Income Tax 2026

Indiana levies a flat 2.95% state income tax on all taxable income for TY2026, stepped down from 3.05% in 2025 under the enacted phase-down schedule. Indiana provides a $1,000 personal exemption per person, with an additional $1,500 exemption for each dependent. Indiana does not use a standard deduction.

Indiana County Income Taxes

All 92 Indiana counties impose a county income tax on top of the state rate. Rates range from 0.50% to 3.38%, based on your county of residence. County tax is withheld from your paycheck by your employer via the state withholding system.

Indiana Sales Tax

Indiana's state sales tax rate is 7.00%. Indiana does not allow local sales taxes, so the state rate is the total rate statewide. Food and food ingredients for home consumption are exempt from Indiana sales tax. Prepared food, candy, and soft drinks are taxable.

Indiana Retirement Tax

Indiana does not tax Social Security benefits. Military retirement income is fully exempt. Most other retirement income is taxable at the flat 2.95% state rate plus the applicable county income tax. A small deduction is available for certain civil service annuities.

Indiana Tax Calculators