Indiana Paycheck Calculator

How Much of a $78,000 Salary Do You Keep After Indiana State Taxes?

Living and working in the Hoosier State allows you to benefit from one of the lowest state income tax rates in the country, currently set at a flat 2.95%. Unlike the federal tax system, Indiana does not provide a standard deduction, meaning your state tax is computed on your adjusted gross income minus a modest personal exemption. For a single taxpayer with a gross salary of $78,000 per year and no pre-tax deductions, these state rules and federal tax brackets result in a net take-home salary of $61,432.

For professionals paid on a bi-weekly cycle—which yields 26 paychecks across the calendar year—this net package translates into a recurring deposit of approximately $2,363 per pay period.

This final net figure is calculated by subtracting federal income taxes (estimable using our Federal Paycheck Calculator), FICA withholdings, and Indiana flat state tax (SIT). It does not include local county income taxes, which vary depending on where you reside. To model custom deductions or run comparative scenarios, you can use our standard tools to run customized scenarios.

Tracing the Calculations: A Step-by-Step Walkthrough of an Indiana Paycheck

To see how these rules function on a real paycheck stub, let us follow a step-by-step example for an employee earning a gross annual salary of $92,000. This employee files as Single, works on a standard bi-weekly pay cycle (26 paychecks a year), contributes 6% of gross wages to a traditional pre-tax 401(k) ($212.31), and has $100.00 deducted per period for medical premiums.

This results in the following paycheck calculations:

• Gross Period Pay: $3,538.46
• Social Security (6.2% of FICA-taxable base): $213.18
• Medicare (1.45% of FICA-taxable base): $49.86
• Indiana State Income Tax (SIT - 2.95% flat): $94.04 (annualized to $2,444.96)
• Federal Income Tax withholding (FIT): $370.14 (annualized to $9,623.60)
• Total paycheck deductions: $1,039.53 (including pre-tax contributions and taxes)
• Net paycheck (Take-Home amount): $2,498.93

Figure 1: Typical bi-weekly paycheck breakdown in Indiana, detailing federal, FICA, and state flat tax allocations.

How Do Local County Income Taxes Work in Indiana?

A key feature of Indiana payroll tax structure is the presence of local county income taxes. Unlike other states where local taxes are rare or progressive (such as in Delaware or California), every single one of Indiana's 92 counties levies its own local income tax (LIT).

These local taxes are based strictly on your **county of residence** as of January 1 of the tax year, rather than where your employer is physically located. Employers withhold this local tax along with the 2.95% flat state tax. Below is a reference table showing the local tax rates for some of Indiana's most populous counties:

What Payroll Taxes for Leave or Disability Deductions Apply to Indiana Employees?

Employees in Indiana are exempt from worker-funded payroll deductions for state disability and paid family leave benefits. Unlike states such as Delaware (which levies 0.40% PFML) or California (which levies a 1.30% employee SDI tax), Indiana has no worker deductions for health, leave, or disability benefits.

Indiana's State Unemployment Insurance (SUI) is paid entirely by employers. By state law, no portion of SUI can be withheld from your paycheck. If you live or work in a state with no income tax at all, such as Florida, you will see even fewer withholdings on your paycheck.

Figure 2: Indiana payroll tax factors showing flat 2.95% state income tax, 0% employee paid leave, and local county tax rates.

How Do You Complete Indiana Form WH-4 for State Withholding?

Your employer calculates state and county tax withholding using the information provided on Form WH-4 (Employee’s Withholding Exemption and County Status Certificate), managed by the Indiana Department of Revenue.

Form WH-4 documents both your county of residence and your county of employment as of January 1. This ensures that the proper county-level income tax rate is applied to your earnings. For federal income tax withholding, a separate federal Form W-4 must be submitted.