If you’re wondering, “How do I figure out how much money I take home in Indiana?” we’ve got you covered.
Use our simple paycheck tax calculator to estimate your net or “take home” pay after taxes, as an hourly or salaried employee in Indiana.
Paycheck Calculator
Paycheck Calculator
Disclaimer: Please note that this paycheck calculator is designed to provide an estimate and should not be considered as professional tax advice. The actual withholding amounts and taxes owed may vary depending on individual circumstances and other factors. For accurate and personalized tax advice, we recommend consulting with a tax professional.
If your gross pay is $60,000.00 per year in the state of Indiana, your net pay (or take home pay) will be $48,079.50 after tax deductions of 19.87% (or $11,920.50). Deductions include a total of [1] 9.07% (or $5,440.50) for the federal income tax, [2] 3.15% (or $1,890.00) for the state income tax, [3] 6.20% (or $3,720.00) for the social security tax and [4] 1.45% (or $870.00) for Medicare.
The Federal Income Tax is collected by the government and is consistent across all U.S. regions. In contrast, the State Income Tax is levied by the state of residence and work, leading to substantial variations. The Social Security Tax is used to fund Social Security, which benefits retirees, persons with disabilities and survivors of deceased workers. Medicare involves a federal payroll tax designated for the Medicare insurance program. As of 2022, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not levy a state income tax.
Meanwhile, get ahead with our free resources:
How Does the Paycheck Calculator Work?
Input your salary information, such as wage and pay frequency, and our tool will handle the tax calculations for you. Once you’ve filled in all the information, click the “Calculate Tax” button, and the calculator will provide an estimate of your net or “take home” pay for the specified pay period. You can also check out our salary to hourly and hourly to salary calculator.
Overview of Indiana Taxes
With a remarkable track record, Indiana has held the title of the largest steel-producing state since 1975, and the Calumet Region contributes significantly to this feat, accounting for 27% of all U.S. steel production.
Indiana also ranks as the second-largest auto manufacturing state, and its diverse manufacturing landscape extends to pharmaceuticals, medical devices, electrical equipment, chemicals, rubber, petroleum, coal products, and more.
If you plan on living and working in “The Hoosier State” here’s what you should know tax-wise.
Indiana imposes a flat state income tax rate of 3.23%, which remains consistent regardless of income or filing status. The state’s 92 counties also levy local taxes, potentially increasing the total Indiana income tax rate to over 6.00%.
Employers withhold federal and FICA taxes from paychecks, encompassing 1.45% in Medicare taxes and 6.2% in Social Security taxes per paycheck.
If you are a self-employed individual, the responsibility for the full FICA contribution (2.9% for Medicare and 12.4% for Social Security) falls on you.
Indiana residents face varying local income tax rates by county, ranging from 0.50% to 2.90%, added to the state rate.
It’s important to take these rates into account in financial planning, as they impact your overall tax liability.
Median Household Income in Indiana
Salary in each state is typically based on the cost of living. While salaries vary widely based on position, the median household income in your state can give you a glimpse at the average salary a household is earning in your region.
| Year | Median Household Income |
|---|---|
| 2021 | $62,743 |
| 2020 | $58,235 |
| 2019 | $57,603 |
| 2018 | $55,746 |
| 2017 | $54,181 |
| 2016 | $52,314 |
| 2015 | $50,532 |
| 2014 | $49,446 |
| 2013 | $47,529 |
| 2012 | $49,974 |
| 2011 | $46,438 |
Over the past decade (2011-2021), there has been a steady increase in median household income in Indiana state. This indicates a positive economic trend, with households generally experiencing improved financial conditions.
Notable increases can be seen from 2013 to 2017, which may reflect the recovery from the 2008 financial crisis. After 2017, the rate of increase slowed down, suggesting a leveling off in income growth.
While the median income is increasing, income disparities still exist. This data represents the median, meaning that half of the households earn less than the reported figure, and half earn more.
Tips for Maximizing Your Paycheck
Here are some tips to help you maximize your paycheck:
- Become familiar with your payroll deductions
- Understand techniques for reducing your tax
- Fully utilize your work-related perks
- Develop a financial plan and define financial goal
- Look into additional income through extra hours or performance incentives
- Regularly check your pay stubs for inaccuracies
