Indiana payroll · DOR Departmental Notice #1

Indiana paycheck calculator.

Gross pay in, take-home pay out. Indiana withholds the 2.95% state rate plus your county’s rate; the county table below is from the Department of Revenue’s notice. Everything runs in your browser; nothing is sent or stored.

Your pay

Gross pay this period ($)

Pay frequency

County of residence (Jan. 1)

County tax rate (decimal, editable)For example 0.0202 is 2.02%. County rates can change during the year, so check the Department’s current notice and overwrite this if yours changed.

Personal exemptions (Form WH-4, line 5)$1,000 each per year.

Additional dependent exemptions, including first-time (lines 6 and 7)$1,500 each per year.

Adopted child dependent exemptions (line 8)$3,000 each per year.

Pre-tax: lowers income tax and FICA ($ per period)For example Section 125 health premiums.

Pre-tax: lowers income tax only ($ per period)For example a traditional 401(k) deferral, which is still subject to Social Security and Medicare tax.

Local income or occupational tax (% of taxable wages, optional)A rate you supply. No local tax tables are built in.

Federal Form W-4 filing status

Federal W-4 Step 2 box is checked (two jobs)

Federal W-4 Step 3: credits, annual ($)

Federal W-4 Step 4(a): other income, annual ($)

Federal W-4 Step 4(b): deductions, annual ($)

Federal W-4 Step 4(c): extra withholding per period ($)

Wages already paid this year, before this check ($)Only matters near the $184,500 Social Security wage base or the $200,000 Additional Medicare threshold.

Estimated Indiana paycheck (2026)

Worked example

Biweekly gross $2,500, one personal exemption, Marion County (2.02%), $100 section 125 premium and $150 traditional 401(k). Income-tax wages are $2,250. Federal income tax $186.15, Social Security $148.80 and Medicare $34.80 (the same federal figures as the U.S. Paycheck Calculator example).

Indiana: the $1,000 exemption ÷ 26 = $38.46 deduction constant, so taxable pay is $2,250 − $38.46 = $2,211.54. State tax: 2.95% × $2,211.54 = $65.24. County tax: 2.02% × $2,211.54 = $44.67.
Take-home: $2,500 − $250 pre-tax − $186.15 − $148.80 − $34.80 − $109.91 = $1,770.34.

How it is calculated

Federal withholding is IRS Publication 15-T (2026) Worksheet 1A for a Form W-4 from 2020 or later, and Social Security (6.2% to $184,500), Medicare (1.45%) and Additional Medicare Tax (0.9% over $200,000) follow IRS Publication 15. Departmental Notice #1 divides each exemption by the number of pay periods to get a deduction constant ($1,000 per personal exemption, $1,500 per additional or first-time dependent exemption, $3,000 per adopted child), subtracts it from gross pay, and multiplies the result by the 2.95% state rate (2026) and by the county rate. The notice says county tax is based on the county of residence on January 1 (or the county of principal work for an out-of-state resident who works in Indiana). The county rates in the selector are those in the notice effective January 1, 2026; the notice itself refers to an earlier October 1, 2025 edition, so counties are revised during the year.

Assumption: the pre-tax amounts you enter reduce Indiana taxable wages the same way they reduce federal income-tax wages; your employer’s payroll setup controls the exact treatment. Not covered: W-4s from 2019 or earlier, bonus and other non-periodic pay (the notice says to compute those with no exemptions), the 30-day nonresident rules, and wage bracket method rounding. This is a planning estimate, not an official calculation or tax advice.

Sources and as-of dates

Indiana DOR Departmental Notice #1, effective Jan. 1, 2026 (R46 / 01-26): how to compute state and county withholding, deduction constant tables, the 2.95% state rate and the 92-county rate table.
IRS Publication 15-T (2026): dated Dec 3, 2025: Worksheet 1A and the annual Percentage Method tables used for federal withholding.
IRS Publication 15 (2026), Employer’s Tax Guide: dated Dec 15, 2025: 6.2% Social Security up to a $184,500 wage base, 1.45% Medicare, 0.9% Additional Medicare Tax over $200,000.
Figures retrieved October 16, 2026. States and the IRS republish these formulas, usually each January; this tool covers 2026 only. It does not look anything up from a government system.

FAQ

Why does my real paycheck differ from this estimate?

Employers may use printed Indiana tables instead of the formula, round differently, apply your exact Form W-4 entries and withhold local, disability, benefit and retirement amounts this tool does not model. Treat the result as an estimate, not tax advice.

Which county do I use?

The county you lived in on January 1 of the tax year. If you lived out of state on January 1 but your principal place of work was in an Indiana county, the notice says the employer uses that county.

Why is the county rate editable?

County rates can change during the year. The selector holds the table in the notice effective January 1, 2026; if the Department’s current notice shows a different rate for your county, type it in.

Which form sets Indiana withholding?

Form WH-4, the Employee’s Withholding Exemption and County Status Certificate. Its line numbers match the exemption fields above.

Does a 401(k) deferral lower Social Security and Medicare tax?

No. Per IRS Publication 15, elective 401(k) deferrals are exempt from income tax withholding but remain subject to Social Security and Medicare tax. Section 125 cafeteria-plan benefits such as health premiums generally are not.