Indiana Income Tax Guide 2025
Indiana Tax Brackets 2025
Indiana uses a progressive tax system with rates varying based on income level and filing status. Here's what you need to know:
Sample Take-Home Pay Calculations for Indiana
Here's what different salary levels look like after taxes in Indiana(assuming single filing status and standard deductions):
| Gross Salary | Net Take-Home | Effective Tax Rate | Monthly Net |
|---|---|---|---|
| $40,000 | $32,896 | 17.76% | $2,741 |
| $50,000 | $40,616 | 18.77% | $3,385 |
| $60,000 | $48,336 | 19.44% | $4,028 |
| $75,000 | $58,591 | 21.88% | $4,883 |
| $100,000 | $75,391 | 24.61% | $6,283 |
| $125,000 | $91,993 | 26.41% | $7,666 |
| $150,000 | $108,293 | 27.80% | $9,024 |
| $200,000 | $142,840 | 28.58% | $11,903 |
Living in Indiana: Tax Considerations
When considering employment or relocation to Indiana, it's important to factor in the total tax burden, including:
- State income tax rates
- Local taxes (if applicable)
- Sales tax rates
- Property tax rates
- Cost of living index
Maximizing Your Take-Home Pay in Indiana
- Contribute to tax-deferred retirement accounts (401k, IRA)
- Utilize Health Savings Accounts (HSA) if eligible
- Take advantage of Flexible Spending Accounts (FSA)
- Understand available state tax deductions and credits
- Consider the timing of income and deductions
Indiana vs Other States
Compare your take-home pay in Indiana with other states: