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Indiana Overtime Calculator 2026

Calculate your Indiana take-home pay including overtime. Overtime pays 1.5× your regular rate for all hours over 40 per week under federal FLSA rules.

Indiana Income Tax Overview

Indiana has a flat state income tax rate of 2.95% — one of the lower state rates in the Midwest. However, Indiana is one of the few states where nearly every county charges its own income tax on top of the state rate. County income taxes in Indiana range from about 0.5% to 3.38% of taxable income, depending on where you live and work. Marion County (Indianapolis) charges 2.02%, Hamilton County charges 1.1%, Lake County charges 1.5%, and Allen County (Fort Wayne) charges 1.48%. This makes Indiana's total income tax burden significantly higher than the 2.95% headline rate for most workers.

Here's what a single Indiana worker in Indianapolis keeps in 2026. On a $50,000 salary, take-home is approximately $40,087 per year ($3,341/month) after federal, FICA, state (2.95%), and Marion County (2.02%) taxes. At $80,000, take-home is approximately $60,602 ($5,050/month). At $100,000, you keep about $74,198 ($6,183/month). At $150,000, take-home is approximately $107,057 ($8,921/month). Workers in suburban counties with lower county rates take home slightly more.

Compared to neighboring Illinois (4.95% flat, no county tax), Indiana workers outside major cities actually pay less total state+county tax. An Indianapolis worker at $80,000 pays effectively 4.97% combined (2.95% + 2.02%), nearly identical to Illinois's 4.95%. Against Ohio, which has its own municipal income taxes, the comparison depends heavily on which cities you're comparing. Compared to Michigan (4.25% flat + some city taxes), Indiana is slightly lower for suburban workers but higher for those in high-county-tax areas.

Watch out: Indiana's county income tax applies based on where you live, not (usually) where you work — though the rules on this vary. If you live in a high-tax county and work from home for a company in a low-tax county, you pay your county's rate. If you move to a lower-tax county, your withholding should change. Make sure your employer has your correct county of residence on file. Workers who move between Indiana counties mid-year should notify payroll to ensure the right county rate is withheld.

Frequently Asked Questions

What is the Indiana state income tax rate for 2026? ▾
Indiana has a flat state income tax rate of 2.95%. However, most counties also charge a county income tax (0.5% to 3.38%), increasing your total Indiana tax burden.
Does Indiana have county income taxes? ▾
Yes. Indiana is one of the few states where nearly every county charges its own income tax in addition to the state rate. The county rate depends on where you live and work.
What is the Indianapolis county income tax rate? ▾
Marion County (Indianapolis) charges a 2.02% county income tax, bringing the total Indiana rate for Indianapolis residents to roughly 4.97%.
How does Indiana compare to neighboring states? ▾
Indiana's state rate of 2.95% is lower than Illinois (4.95%) and Michigan (4.25%), but county taxes bring the effective total rate up significantly for most residents.

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