Indiana Paycheck Calculator

Indiana paycheck calculator estimates the taxes deducted from your earnings as an employee. These deductions include federal taxes, Indiana state and local taxes, as well as contributions to Social Security and Medicare.

County Income Tax Rates Indiana

Overview of Indiana State Sales Tax

Indiana applies a flat state income tax rate of 3.05% to all taxpayers in 2024.

Additionally,each county applies its own local tax rate, ranging from 1% to 2.95%.

Combined, the total tax rate can reach up to 6%, depending on the county of residence.

While Indiana does not offer a standard deduction, it provides a personal tax exemption of $1,000 for single filers and $2,000 for couples filing jointly.

Hamilton County Indiana Income Tax Rate:

Hamilton County has a local income tax rate of 1.1%.

Let’s calculate the taxes for a single filer living in Hamilton County, Indiana, earning $75,000 annually.

1.Federal Tax Calculation:

• Standard deduction: $14,600.
• Taxable income for federal tax: $75,000- $14,600 = $60,400.
• Federal tax rate (22%):
  $11,600 x 10% + ($47,150 - $11,600) x 12% +($60,400 - $47,150) x 22% = $8,341
• Federal tax owed: $8,341.

2.Indiana State Tax Calculation:

• Personal Exemption: $1,000.
• Taxable income for Indiana state tax: $75,000 - $1,000 = $74,000
• State tax rate (3.05%):
  $74,000 x 3.05% = $2,257.
• State tax owed: $2,257

3.Hamilton County Tax:

• Hamilton county tax rate: $74,000 x 1.1% = $814.
• Local tax owed: $814

4.Social Security Tax (No deductions, taxed on gross income):

• $75,000 x 6.2% = $4,650.
• Social security tax owed: $4,650.

5.Medicare Tax (No deductions, taxed on gross income):

• $75,000 x 1.45% = $1,088.
• Medicare tax owed: $1,088.

6.Total Tax:

• $8,341 + $2,257 + $814 + $4,650 + $1,088 = $17,150

7.Net Pay

• $75,000 - $17,150 = $57,850