Tip: Start from the federal W-4 calculator to pre-fill your pay and federal results here automatically.
Your Paycheck
Filing Status
Credits & Adjustments (Optional)
Leave blank if you're not sure — these only affect your federal withholding.
$2,200 per child under 17 · $500 per other dependent. Reduces your withholding.
Add extra to cover side income, freelance, or investment income each paycheck.
Non-wage income: freelance, dividends, rental income. Annual total.
If you itemize and deductions exceed the standard deduction. Annual total.
File your Indiana return
Total withholding per paycheck
$289
$7,508 / year
Gross pay minus federal, FICA, and state taxes
Federal
Indiana State Tax
State rate only (2.95% for 2026). Most Indiana counties add a county income tax — check your county rate.
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Indiana uses its own form: the WH-4
Indiana does not use your federal W-4 to set state withholding. You give your employer Form WH-4, the Employee's Withholding Exemption and County Status Certificate. It has two jobs: counting your exemptions, and telling your employer which county tax to withhold.
Update it any time your total exemptions change, and by January 1 each year if your county of residence or principal place of work changes.
State rate and exemptions for 2026
Indiana's state adjusted gross income tax rate is 2.95% for 2026, a flat rate with no brackets. Each personal exemption you claim on line 5 of the WH-4 deducts $1,000 a year from the pay used to figure withholding. Personal exemptions include additional exemptions if you or your spouse are 65 or older or blind. Dependent exemptions on line 6 are worth $1,500 a year each, with first-time and adopted-child dependent exemptions on additional lines.
For example, a single employee earning $50,000 who claims one exemption has about ($50,000 − $1,000) × 2.95% = $1,445 of state tax withheld per year.
County tax
Indiana counties add their own income tax, withheld along with the state tax and based on the employee's county of residence or county of principal employment as of January 1. Rates differ by county, and Indiana's Departmental Notice #1 lists each one. The calculator shows the state rate; add your county's rate to see the full Indiana withholding.
If you move to another Indiana county, or your employer moves you, file a new WH-4 so the right county rate is applied.
Indiana W-4 FAQ
What is Indiana's income tax rate for 2026?+
The state rate is a flat 2.95% for 2026. Counties charge an additional county income tax, and rates vary by county.
How many exemptions should I claim on the WH-4?+
Claim one personal exemption for yourself, one for a spouse if you are married, additional personal exemptions if you or your spouse are 65 or older or blind, and a dependent exemption for each qualifying dependent. You may claim fewer to have more withheld.
How much is each exemption worth?+
$1,000 a year per personal exemption and $1,500 a year per dependent exemption for withholding purposes.
Which county tax is withheld from my pay?+
The county where you live as of January 1, or the county of your principal place of work if you work in an Indiana county and live elsewhere. Update your WH-4 if either changes.
Does Indiana use the federal W-4?+
No. Indiana uses the WH-4 for state and county withholding. The federal W-4 controls federal withholding only.
Start with your federal W-4
Your Indiana withholding follows your pay, but your W-4 is federal. Get the exact lines to fill in.
Open the W-4 Calculator →