How Indiana withholding works
Departmental Notice #1 sets the method:
- Subtract the deduction constants: $1,000 a year per personal exemption on Form WH-4, $1,500 per dependent exemption and $3,000 per adopted child.
- Withhold 2.95% of the rest for state tax, and the county rate on the same amount for county tax.
The notice’s own example – $800 weekly with five personal exemptions and several dependents, county rate 1% – gives $13.96 state and $4.73 county tax; this calculator reproduces both figures.
County income tax
All 92 counties levy an income tax, from 0.5% to 3%. Choose your county in the calculator; rates are those effective 1 October 2026.
Worked example: $60,000 in Indiana
Single, $60,000 salary, paid every two weeks, Indiana
Gross pay is $2,307.69 per paycheck. Federal income tax is $193 and Social Security and Medicare $177. Indiana withholds $67. Take-home pay is $1,825 per paycheck, or $47,458 a year.
Take-home pay per paycheck$1,825.2926 paychecks a year
- Take-home pay per year
- $47,458
- Federal income tax withheld
- $193.08
- Indiana income tax withheld
- $66.942.95% + county tax
| Item | Per paycheck | Per year |
|---|---|---|
| Gross pay | $2,307.69 | $60,000.00 |
| Federal income tax | −$193.08 | −$5,020.08 |
| Social Security (6.2%) | −$143.08 | −$3,720.08 |
| Medicare (1.45%) | −$33.46 | −$869.96 |
| Indiana income tax | −$66.94 | −$1,740.44 |
| Marion County tax (2.02%) | −$45.84 | −$1,191.84 |
| Take-home pay | $1,825.29 | $47,457.60 |
At $100,000 a year, take-home pay is about $74,259 a year.