Indiana Hourly Paycheck Calculator
Your hourly rate and hours in, your take-home pay out. Overtime is paid at 1.5× your rate; tips you report are taxed like wages.
| Per paycheck | Amount | Per year |
|---|---|---|
| Gross pay | $1,600.00 | $41,600.00 |
| Federal income tax · withheld | −$108.15 | −$2,812.00 |
| Social Security (6.2%) | −$99.20 | −$2,579.20 |
| Medicare (1.45%) | −$23.20 | −$603.20 |
| Indiana income tax · withheld | −$46.07 | −$1,197.82 |
| County income tax · enter your county rate above | $0.00 | $0.00 |
| Take-home pay | $1,323.38 | $34,407.78 |
How the federal income tax was worked out
| Pay subject to income tax, for the year · $1,600.00 × 26 paychecks | $41,600.00 |
| Minus the IRS withholding allowance · Pub 15-T Worksheet 1A, line 1g | −$8,600.00 |
| Adjusted yearly wage | $33,000.00 |
| Tax from the IRS yearly table · standard table | $2,812.00 |
| Federal income tax per paycheck · divided by 26 | $108.15 |
IRS Publication 15-T (2026), Worksheet 1A — the percentage method payroll software uses for a Form W-4 from 2020 or later. Your employer's figure can differ by a few cents because of rounding.
How the Indiana income tax was worked out
| Pay subject to Indiana tax this paycheck · after pre-tax 401(k) and benefits, like federal | $1,600.00 |
| Minus personal exemptions · 1 × $1,000 ÷ 26 | −$38.46 |
| Indiana taxable income · county tax uses this amount too | $1,561.54 |
| Indiana state income tax this paycheck · × 2.95% (Departmental Notice #1) | $46.07 |
Hourly pay in Indiana
Indiana's minimum wage is $7.25 an hour, the same as the federal rate, in effect since July 24, 2009. Tipped employees can be paid $2.13 an hour if the employer claims a tip credit and tips bring them up to $7.25. Employers may pay $4.25 an hour to workers under 20 for their first 90 days in a row on the job.
Overtime. Time-and-a-half for hours over 40 in a workweek.
Extra hours raise both taxes. The state and county taxes are percentages of your pay after exemptions, so overtime adds to both.
Because hours change from week to week, your withholding changes too: a week with lots of overtime is withheld as if you earned that much every week, so more comes out. It usually evens out when you file your return.
What comes out of a Indiana paycheck
- Federal income tax withholding — worked out from your pay and your Form W-4, using the IRS tables for 2026.
- Social Security — 6.2% of your pay, up to $184,500 of pay in 2026. Above that, it stops for the rest of the year.
- Medicare — 1.45% of all your pay, plus 0.9% on pay above $200,000 in the year.
An Indiana paycheck usually has two state and local lines:
- Indiana state income tax: 2.95% of your taxable income. Taxable income is your pay after pre-tax 401(k) and health benefits, minus a set amount for each exemption you claim on Form WH-4.
- County income tax — a rate set by your county, charged on the same taxable income. Enter your county's rate above.
There is no employee deduction for unemployment insurance: only employers pay into Indiana's unemployment insurance system.
Tips and overtime in 2026
New federal deductions apply for 2025 through 2028: up to $25,000 for qualified tips, and up to $12,500 ($25,000 for joint filers) for the extra "half" of time-and-a-half overtime. Both phase out above $150,000 of income ($300,000 joint).
These are deductions on your tax return. Your employer still takes Social Security and Medicare out of tips and overtime, and still withholds income tax unless you tell it otherwise. If you expect to claim them, you can put the expected amount in Step 4(b) of your W-4 (and in the Step 4(b) box above) so less income tax is withheld during the year.
Other Indiana calculators
Paycheck calculator · Hourly paycheck calculator · Salary paycheck calculator · What changed for 2026
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Sources
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods — Worksheet 1A and the annual percentage-method tables
- IRS Publication 15 (2026), Employer's Tax Guide — Social Security and Medicare rates
- Social Security Administration — 2026 wage base of $184,500
- IRS — tips and overtime deductions
- Indiana Department of Revenue — Departmental Notice #1, Withholding (R46 / 01-26, effective Jan. 1, 2026) — 2.95% state rate; $1,000 / $1,500 / $3,000 exemption constants; county rates; worked example
- Indiana Department of Revenue — Form WH-4, Employee's Withholding Exemption and County Status Certificate — personal, dependent, age 65/blind, additional dependent and adopted child exemptions; county of residence and work on January 1
- Indiana Code 6-3-2-1 — Individual income tax rate — 3% for 2025, 2.95% for 2026, 2.9% from 2027
- Indiana Code 6-3-1-3.5 — Adjusted gross income — starts from federal adjusted gross income
- Indiana Department of Workforce Development — Unemployment for employers FAQ — only employers pay into the unemployment insurance system
- Indiana Department of Labor — Indiana minimum wage poster — $7.25 since July 24, 2009; $2.13 tipped cash wage; overtime after 40 hours
- Indiana Code 22-2-5-1 — Frequency of wage payments — at least semimonthly, or biweekly if requested; wages to within 10 business days; quitting employees paid on the next regular payday
- Indiana Code 22-2-9-2 — Wages of separated employees — due at the regular payday for the pay period of separation
- Indiana Department of Labor — Online wage claim form
Questions
How much Indiana tax comes out of my paycheck?
2.95% of your pay after pre-tax 401(k), health benefits and your WH-4 exemptions, plus your county's rate on the same amount.
How much is taken out of a $1,000 paycheck in Indiana?
For a single filer paid every two weeks with nothing else on the W-4, a $1,000 paycheck has about $38.08 of federal income tax, $62.00 of Social Security and $14.50 of Medicare taken out, $28.37 of Indiana income tax, leaving $857.05. Enter your own details in the calculator for your exact figure.
What is $20 an hour after taxes in Indiana?
Working 40 hours a week and paid every two weeks, $20 an hour is $1,600.00 before tax and about $1,323.38 after tax per paycheck — $34,407.78 a year — for a single filer with a standard W-4.
Does my 401(k) lower my Indiana tax?
Yes. Indiana income starts from federal adjusted gross income, so pre-tax 401(k) money and section 125 health premiums are left out, as they are for federal income tax.
Which county rate applies to me?
The rate for the county you lived in on January 1. If you lived out of state on January 1 but mainly worked in an Indiana county, that county's rate applies.
Is unemployment insurance taken out of Indiana paychecks?
No. Only employers pay into Indiana's unemployment insurance system.