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Indiana Hourly Paycheck Calculator

An hourly wage in Indiana is reduced by federal income tax, FICA of 7.65% (6.2% Social Security up to the annual wage base plus 1.45% Medicare), and a flat 2.95% Indiana income tax in 2026. Enter your wage and hours to see net pay for any pay frequency. Against the 4 states Indiana borders, the same $25 an hour is worth $42,428 here: Ohio keeps $820 more ($43,248), Kentucky leaves $168 less ($42,260), Michigan leaves $676 less ($41,752) and Illinois leaves $1,040 less ($41,388). Ohio is the only border worth crossing for the tax alone.

Estimated take-home

$1,632

every two weeks · $42,428 a year

For $25/hr, 40 hrs a week · Indiana · local tax not included · single

Take-home 82%Taxes & deductions 18%

Pay stub

ItemPer paycheckPer year
Gross pay$2,000.00$52,000
Federal income tax− $156.15− $4,060
Social Security (FICA)− $124.00− $3,224
Medicare (FICA)− $29.00− $754
Indiana income tax− $59.00− $1,534
Take-home pay$1,631.85$42,428

FICA is Social Security plus Medicare.

Estimate based on 2026 federal and Indiana tax rules updated Oct 2026 How we calculate

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You keep

82¢of every dollar

On average you keep 82¢ of each dollar. Of your next $1,000, you’d keep about $774: the dashed line.

Insights

  • Next $1,000

    Every extra $1,000 you earn adds about $774 to your take-home. The other $226 goes to tax.

  • Overtime

    One more overtime hour a week ($37.50) would add about $58 to each paycheck after withholding.

  • In Texas

    In Texas the same pay would leave you $1,534 more a year. Texas has no state income tax.

State comparisons cover income and payroll taxes only; living costs and other taxes differ.

Effective tax rate 18.4%

What common hourly wages leave in Indiana

Worked full time at 40 hours a week in Indiana, here is what common wages leave after federal tax, Indiana income tax and FICA in 2026:

WageGrossIndiana taxYou keepShare kept
$18/hour$37,440$1,104$31,15983.2%
$25/hour$52,000$1,534$42,42881.6%
$35/hour$72,800$2,148$57,89779.5%

Indiana takes about 2.9% of that money on top of the 8% federal marginal rate and 7.65% FICA.

How Indiana ranks on hourly wages

Across all 50 states and DC, Indiana ranks 19th for what $25 an hour leaves in 2026. That is $168 more than the median state ($42,260), and $2,754 more than Oregon, where the same $25 an hour leaves $39,674.

The best outcome anywhere is $43,962 in Alaska and the other states with no wage income tax, $1,534 more than Indiana keeps.

Indiana hourly wages against the states next door

Crossing a state line changes what the same hourly wage is worth without changing what you are paid. Here is $25 an hour in Indiana against the states it borders:

StateState income taxYou keepvs Indiana
Indiana$1,534$42,428—
Illinois$2,574$41,388$1,040 less
Kentucky$1,702$42,260$168 less
Michigan$2,210$41,752$676 less
Ohio$714$43,248$820 more

Local income tax on hourly wages in Indiana

5 jurisdictions in Indiana levy an income tax of their own on top of the state rate. The calculator above does not include them, so add this if you live or work in one:

JurisdictionResident rateCost on $52,000
Marion County (Indianapolis)2.02%$1,050
St. Joseph County (South Bend)1.75%$910
Allen County (Fort Wayne)1.59%$827
Lake County1.50%$780
Vanderburgh County (Evansville)1.25%$650

How hourly take-home pay is calculated in Indiana

Your hourly wage is just the starting point. Indiana workers pay federal and state taxes on their annualized income, plus mandatory FICA contributions. Here's exactly how it works.

  • Annualized income determines your bracket: Your employer annualizes your hourly income (hourly rate × hours × 52 weeks) to determine the correct withholding for each paycheck.
  • Indiana state income tax: Indiana taxes wages at a flat 2.95%, applied to each paycheck based on your annualized income. Local income taxes in some Indiana cities or counties are not included.
  • Social Security and Medicare: FICA taxes are 6.2% for Social Security (up to the annual wage base) and 1.45% for Medicare. These are fixed percentages with no deductions or exemptions.
  • Pre-tax deductions reduce your taxable income: Contributions to a 401(k), HSA, or FSA are deducted before taxes are calculated, lowering both your taxable income and your tax bill.

The calculator combines all these factors to show your exact take-home pay per paycheck, per month, and annually.

Frequently Asked Questions

Hourly wages in Indiana are subject to federal income tax (based on your annualized income and filing status), Indiana's flat 2.95% income tax, and FICA taxes (Social Security at 6.2% up to the annual wage base and Medicare at 1.45%). The calculator annualizes your hourly income to determine the correct tax bracket, then shows your actual per-paycheck take-home.

Multiply your hourly rate by your weekly hours, then by 52: $25/hour × 40 hours × 52 weeks is $52,000 a year. That annualized figure sets your federal and Indiana bracket. In Indiana it works out to $31,159 on $18 an hour, $42,428 on $25 an hour, $57,897 on $35 an hour: take-home, not gross.

Federal income tax (using progressive brackets based on your annualized income and filing status), a flat 2.95% Indiana income tax, Social Security tax (6.2% up to the wage base, currently $176,100 for 2026), and Medicare tax (1.45% on all income, plus 0.9% for earnings over $200,000 if single or $250,000 if married).

Indiana's minimum wage is set by state law and may be higher than the federal minimum of $7.25 per hour. Some cities within Indiana have their own higher local minimums. Check your employer's offer against the current Indiana Department of Labor rates to verify compliance.

Your total annual tax is the same however often you're paid; only the per-paycheck withholding changes. On $25 an hour in Indiana that is about $1,632 every two weeks, $1,768 semi-monthly or $3,536 a month after tax. The calculator adjusts withholding for weekly, bi-weekly, semi-monthly and monthly periods.

Against the 4 states Indiana borders, the same $25 an hour is worth $42,428 here: Ohio keeps $820 more ($43,248), Kentucky leaves $168 less ($42,260), Michigan leaves $676 less ($41,752) and Illinois leaves $1,040 less ($41,388). Ohio is the only border worth crossing for the tax alone.

Indiana's 2.95% income tax is among the lowest flat rates in the nation, but the state compensates with a 7% state sales tax: one of the highest state sales tax rates. A big spender might pay more in sales tax than they'd pay in income tax in some other states. A $50,000 earner who spends $40,000 annually on taxable goods pays $1,475 in income tax plus $2,800 in sales tax, totaling $4,275 (8.6% of income). Factor in both income and spending patterns when evaluating Indiana.

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