Calculate Your Indiana State Tax
Marion (Indianapolis): 1.25%, Hamilton: 1.0%, Lake (Gary): 1.45%
Gross Income:
$0
State Tax (3.0%):
$0
County Tax:
$0
Total Tax:
$0
Effective Rate:
0%
After-Tax Income:
$0
Indiana Income Tax Rate for 2025
Indiana has a 3.0% flat state income tax rate for 2025 (down from 3.05% in 2024). All 92 Indiana counties add local income taxes ranging from 0.25% to 3.38%, making the total combined rate typically 3.25% to 6.38%.
✅ Indiana's Low Rate: The 3.0% state rate is tied with Louisiana for the second-lowest state income tax in the U.S. (after Arizona's 2.5%). Even with county taxes, Indiana remains very competitive.
How the Tax is Calculated
- Multiply gross income by 3.0% (state tax)
- Add county tax (varies by county, typically 1-2%)
- That's your total Indiana tax!
Real Example: $75,000 Income (Indianapolis)
Living in Marion County (Indianapolis):
- State Tax: $75,000 × 3.0% = $2,250
- County Tax: $75,000 × 1.25% = $938
- Total: $3,188
- Combined Rate: 4.25%
Living in Hamilton County (Carmel/Fishers):
- State Tax: $2,250
- County Tax: $75,000 × 1.0% = $750
- Total: $3,000
- Combined Rate: 4.0%
- Savings: $188/year vs Indianapolis
How Indiana Compares
| State | Tax System | Tax on $75k | vs Indiana |
|---|---|---|---|
| Indiana | 3.0% + county | $3,188 | — |
| Michigan | 4.25% flat | $2,950 | Similar |
| Ohio | Up to 3.125% | $1,346 (state only) | OH lower |
| Illinois | 4.95% flat | $3,713 | IN saves $525 |
| Kentucky | 4.0% flat | $3,000 | IN saves $188 |
County Tax Rates by Major Area
| County | Major Cities | County Rate | Total Rate |
|---|---|---|---|
| Marion | Indianapolis | 1.25% | 4.25% |
| Hamilton | Carmel, Fishers, Noblesville | 1.0% | 4.0% |
| Lake | Gary, Hammond | 1.45% | 4.45% |
| Allen | Fort Wayne | 1.23% | 4.23% |
| St. Joseph | South Bend | 1.52% | 4.52% |
💡 Suburban Strategy: Hamilton County (Carmel, Fishers) has a 1.0% county tax vs Marion County's (Indianapolis) 1.25%. On $75k, that's a $188/year savings while staying close to the city.
When Moving to Indiana Makes Sense
✅ Move to Indiana if:
- You're moving from Illinois (4.95%) or Ohio with high city taxes
- You value low cost of living + low taxes
- You work in manufacturing, logistics, or life sciences
- You want Midwest lifestyle with competitive taxes
Affordable Tax Filing for Indiana
- Cash App Taxes - FREE for federal and IN state
Try Cash App Taxes → - FreeTaxUSA - $0 federal, $14.99 IN state
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Related Resources
- Illinois Tax Calculator - Compare IN vs IL
- Ohio Tax Calculator - Compare IN vs OH
- All State Tax Calculators
📊 Data Sources: IN Department of Revenue. Accurate for tax year 2025.