Indiana has a flat income tax rate of 2.95%, the 25th highest combined sales tax (7.00%) and the federal $7.25 minimum wage as of 2026.
$8,020 a year: that is roughly what an Indiana homeowner earning $75,000 pays in state income tax ($2,183), sales tax on $25,000 of purchases ($1,750), property tax on a $300,000 house ($2,280) and electricity at 900 kWh a month ($1,807).
Indiana uses a single flat rate. Single filers' standard deduction: none; personal exemption: $1,000. On $50,000 of wages, a single filer's Indiana tax works out to about $1,446 (2.9% of wages); on $100,000 it is about $2,920 (2.9%). Source: Tax Foundation, January 1, 2026.
| Rate | Single filers | Married filing jointly |
|---|---|---|
| 2.95% | over $0 | over $0 |
Estimated 2026 take-home pay for a single filer with no pre-tax deductions, using the federal brackets and $16,100 standard deduction, Social Security and Medicare, and Indiana's brackets above. Open the paycheck calculator set to Indiana to add a 401(k), change pay frequency or filing status.
| Salary | Federal tax | FICA | State tax | Take-home (year) | Per biweekly check |
|---|---|---|---|---|---|
| $50,000 | $3,820 | $3,825 | $1,446 | $40,910 | $1,573 |
| $75,000 | $7,670 | $5,738 | $2,183 | $59,410 | $2,285 |
| $100,000 | $13,170 | $7,650 | $2,920 | $76,260 | $2,933 |
The state rate is 7.00% and local governments add 0.00% on average, for a combined 7.00%, 25th highest of the 50 states and D.C. (median 7.00%). A $1,000 purchase carries about $70 in sales tax at the average combined rate. Source: Tax Foundation, July 1, 2026.
Indiana follows the federal minimum of $7.25 an hour (the Indiana rate equals the federal minimum), which is $15,080 a year for full-time work (2,080 hours). Source: U.S. Department of Labor, July 1, 2026.
Homeowners in Indiana paid property taxes equal to 0.76% of home value on average, the 23rd lowest effective rate (median state 0.79%). On a $300,000 home that is about $2,280 a year, or $190 a month in escrow. Source: Tax Foundation (Census ACS data), 2024 data.
Residential electricity averaged 16.73¢ per kWh in July 2026, the 23rd highest of the 50 states and D.C. (median 16.09¢). A household using 900 kWh a month would pay about $151 before fixed charges. Source: U.S. EIA, July 2026 data.
Indiana sits in the middle of its 4 neighbors on taxes, wages and power prices.
| State | Top income tax | Sales tax | Min. wage | Property tax | Electricity |
|---|---|---|---|---|---|
| Indiana | 2.95% | 7.00% | $7.25 | 0.76% | 16.73¢ |
| Illinois | 4.95% | 8.98% | $15.00 | 1.88% | 19.22¢ |
| Kentucky | 3.5% | 6.00% | $7.25 | 0.74% | 13.81¢ |
| Michigan | 4.25% | 6.00% | $13.73 | 1.19% | 23.05¢ |
| Ohio | 2.75% | 7.29% | $11.00 | 1.36% | 19.45¢ |
Indiana figures use statewide averages; tax estimates include the standard deduction and personal exemption but skip other credits, dependents and local income taxes; check Indiana revenue and labor department sites before filing or hiring.
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