Basic Info
Deductions
Insurance Premiums
Your Indiana Paycheck Results
Calculating your paycheck…
Take-Home Pay:
$0.00
Per Pay Period:
$0.00
Tax Breakdown
Federal Income Tax:
$0.00
State Income Tax (IN):
$0.00
Social Security:
$0.00
Medicare:
$0.00
Additional Medicare:
$0.00
Total Tax:
$0.00
Deduction Breakdown
401(k) Contribution:
$0.00
Traditional IRA:
$0.00
HSA Contribution:
$0.00
FSA Contribution:
$0.00
Health Insurance:
$0.00
Dental Insurance:
$0.00
Vision Insurance:
$0.00
Other Deductions:
$0.00
Total Deductions:
$0.00
Gross Annual Income:
$0.00
Effective Tax Rate:
0.00%
Indiana State Income Tax Information
As of 2025, Indiana imposes a flat state income tax rate of 3.05% on all taxable income. This rate is scheduled to decrease to 3.00% for the 2025 tax year and further to 2.9% by 2027. :contentReference[oaicite:4]{index=4}:contentReference[oaicite:5]{index=5}
Federal Income Tax
Federal income tax applies uniformly across all states. For 2025, federal rates range from 10% to 37%, with standard deductions of $15,000 for single filers and $30,000 for married couples filing jointly.:contentReference[oaicite:10]{index=10}
FICA Taxes
| Tax Component | Rate | Income Limit |
|---|---|---|
| Social Security | 6.2% | Up to $168,600 |
| Medicare | 1.45% | No Limit |
| Additional Medicare | 0.9% | Income above $200,000 (Single) / $250,000 (Married) |
Pre-Tax Deductions
Common pre-tax deductions available to Indiana residents include:
- Contributions to 401(k), 403(b), and other retirement plans
- Health and dental insurance premiums
- Health Savings Account (HSA) and Flexible Spending Account (FSA) contributions
- Pre-tax transit and commuter benefits
Indiana-Specific Deductions and Credits
| Credit or Deduction | Description |
|---|---|
| Personal Exemption | $1,000 exemption for each taxpayer and dependent. :contentReference[oaicite:11]{index=11} |
| Indiana Earned Income Credit (EIC) | 10% of the federal EIC for eligible low-income workers. :contentReference[oaicite:12]{index=12} |
| CollegeChoice 529 Savings Plan Credit | 20% credit on contributions up to $5,000, yielding a maximum credit of $1,000. :contentReference[oaicite:13]{index=13} |
| Credit for Taxes Paid to Other States | Credit available for income taxes paid to other states, preventing double taxation. :contentReference[oaicite:14]{index=14} |
| Public School Educator Expense Credit | Credit for eligible educators purchasing classroom supplies. :contentReference[oaicite:15]{index=15} |
Interesting Facts About Indiana Taxes
- Indiana’s flat income tax rate simplifies tax calculations for residents.
- All 92 counties in Indiana impose local income taxes, ranging from approximately 0.5% to 3%. :contentReference[oaicite:16]{index=16}
- Military retirement pay is fully exempt from Indiana state income tax. :contentReference[oaicite:17]{index=17}
- Indiana offers tax credits to encourage contributions to education savings and support for individuals with disabilities. :contentReference[oaicite:18]{index=18}
- The state provides various tax incentives to promote economic development and support low-income residents.
FAQs – Indiana Paycheck Tax
- 1. Does Indiana tax Social Security benefits?
- No, Indiana does not tax Social Security benefits.
- 2. Are there local income taxes in Indiana?
- Yes, all 92 counties impose local income taxes, varying by county. :contentReference[oaicite:19]{index=19}
- 3. Can I claim a deduction for contributions to an Indiana CollegeChoice 529 Plan?
- Yes, contributions are eligible for a 20% state tax credit, up to a maximum of $1,000. :contentReference[oaicite:20]{index=20}
- 4. What pre-tax deductions reduce taxable income in Indiana?
- Retirement contributions, health insurance premiums, HSAs, FSAs, and commuter benefits can lower your taxable income.
- 5. Does Indiana have a standard deduction?
- Indiana does not have a standard deduction but offers personal exemptions of $1,000 per taxpayer and dependent. :contentReference[oaicite:21]{index=21}