United States · State income tax
Indiana state income tax rate 2027.
Indiana’s flat rate from the official source, with the 2026 figures and a statutory 2027 column.
Short answer: Indiana taxes wages at a flat 2.95% for 2026 (a single bracket for single and joint filers). State law already fixes different 2027 rates, which are shown below and used in the 2027 result.
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Result
Enter your Indiana taxable income and press Estimate.
The Indiana schedule
Indiana DOR Rates, Fees & Penalties page: 'The Indiana Individual adjusted gross income tax rate for 2026 is 2.95% and will adjust in 2027 to 2.90%.' Flat rate, same for all filing statuses; no dollar brackets.
Single filers
| Taxable income | Rate, 2026 | Rate, 2027 (enacted) |
|---|---|---|
| All taxable income | 2.95% | 2.9% |
Joint filers
| Taxable income | Rate, 2026 | Rate, 2027 (enacted) |
|---|---|---|
| All taxable income | 2.95% | 2.9% |
Deductions, exemptions and local tax
Indiana has no standard deduction in the sources cited; DOR Departmental Notice #1 (effective Oct. 1, 2026) states $1,000 per personal exemption and $1,500 per qualifying dependent exemption for withholding. These are not modelled.
Yes. Indiana counties levy a county income tax on residents, with rates that differ by county (listed in DOR Departmental Notice #1, which says rates can change in January and October). Not modelled. County income tax is added to the state rate (not modelled). No state surtax seen.
What changes in 2027 (projected)
Same DOR page states the rate adjusts in 2027 to 2.90%. The statute text (IC 6-3-2-1) was not checked; the Department of Revenue statement is the source.
The 2027 column above uses the rates enacted in law. Any indexed dollar edges that the state has not yet published are not invented here.
Worked example (2026 schedule)
A single filer with $80,000 of Indiana taxable income owes $2,360 under the 2026 schedule, an effective rate of 2.95% and a marginal rate of 2.95%. A joint filer with $150,000 of Indiana taxable income owes $4,425 under the 2026 schedule, an effective rate of 2.95% and a marginal rate of 2.95%. For 2027 the enacted rates give $2,320 for the single example (2.90% effective) and $4,350 for the joint example (2.90% effective).
Common mix-ups
- Indiana's rate is 3.0% in 2026. DOR states the 2026 rate is 2.95%, dropping to 2.90% in 2027.
- Indiana state tax is the whole income tax bill. Counties also levy an income tax; DOR's Departmental Notice #1 has a rate per county.
- Married couples get wider brackets. Indiana is a flat rate with no brackets, so filing status does not change the rate; exemptions are $1,000 per person per Notice #1.
- The rate is a fixed 2.95% going forward. DOR says it adjusts in 2027 to 2.90%.
Method
The tool applies each bracket rate only to the slice of income inside that bracket, adds the slices and divides by income for the effective rate; the marginal rate is the rate of the bracket that contains your income. The 2027 line uses the enacted 2027 rates. Nothing you type is sent to our servers; the maths runs in your browser. For a full paycheck including federal and payroll taxes, use the paycheck calculator, and for comparing states see the state income tax calculator.
What this does not cover
- Deductions, exemptions and credits. Enter income after them.
- Head of household, part-year or nonresident returns, and income taxed at special rates.
- Local income taxes and surtaxes beyond the bracket schedule (see the section above).
- Any 2027 law change that has not been enacted yet.
Figures read from the sources below on November 9, 2026. Last updated November 9, 2026.
Sources
- Indiana DOR: Rates, Fees & Penalties (2026 and 2027 state rate) (retrieved November 9, 2026)
- Indiana DOR Departmental Notice #1 (R47 / 10-26) (county tax existence, $1,000 exemption, $1,500 dependent exemption) (retrieved November 9, 2026)
Frequently asked questions
What is the Indiana state income tax rate for 2027?
Indiana law already sets 2027 rates. Same DOR page states the rate adjusts in 2027 to 2.90%. The statute text (IC 6-3-2-1) was not checked; the Department of Revenue statement is the source. The 2027 column and result on this page use them.
What is the top Indiana income tax rate?
2.95% under the 2026 schedule. It applies to all taxable income; there is only one bracket.
How much Indiana income tax would I pay on $80,000?
A single filer with $80,000 of Indiana taxable income owes $2,360 under the 2026 schedule, an effective rate of 2.95% and a marginal rate of 2.95%. The estimator above runs your own figure.
Does this page include deductions or credits?
No. It applies the rate schedule to the taxable income you enter, so subtract your deductions and exemptions first. It does not model credits, local taxes or surtaxes.
Is the 2027 result a forecast?
It uses the 2027 rates already written into Indiana law, so it is not a guess about rates, but the state can still amend them and the dollar edges may be indexed. Check the Indiana tax agency before you file.
Where does the information on this page come from?
Indiana sources read on November 9, 2026: Indiana DOR: Rates, Fees & Penalties; Indiana DOR Departmental Notice #1. The links in the Sources section go to the originals.
Not legal or tax advice
Rates change and this is an unofficial guide, not run by any state tax agency; any 2027 figure that is not enacted is a projection. Nothing you type is transmitted anywhere. Confirm with the Indiana tax agency or a tax professional before you file.