Indiana Income Tax Brackets 2026

Indiana uses a flat income tax system with 1 bracket.

State Tax

3.0%

Top marginal rate

COL Index

91

Below national avg

Median Income

$67,173

Household

Brackets

1

Flat tax

Indiana Tax Brackets

Income RangeMarginal Rate
$0and above3.05%

Indiana State Tax at Different Income Levels

Gross IncomeState TaxEffective Rate
$50,000$1,5253.05%
$75,000$2,2883.05%
$100,000$3,0503.05%
$150,000$4,5753.05%
$200,000$6,1003.05%
$300,000$9,1503.05%

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Frequently Asked Questions about Indiana Taxes

Does Indiana have state income tax?

Indiana has a progressive income tax system with rates ranging from 3.0% to 3.0% for 2026.

How much is federal tax in Indiana?

Federal income tax in Indiana is the same as in all other US states. For 2026, the federal brackets range from 10% to 37%, depending on your taxable income and filing status.

What is the cost of living in Indiana?

The cost of living in Indiana has an index of 91, where 100 is the national average. This means Indiana is 9% cheaper than the average US state.