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    2026 Indiana State Income Tax Withholding: Rates & Payroll

    Compliance with state taxes is required for every employer. Learn about Indiana's rates, deduction methods, and how to calculate state tax withholding below.

    Last updated: December 17th, 2025

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    Each state has unique income tax withholding rules. Below are Indiana's 2026 withholding instructions, including allowance calculations, standard deduction adjustments, and the percentage method for determining tax due.

    Employers must also adhere to federal income tax withholding rules. More information can be found here about federal rates.

    Alternatively, employers can automatically calculate payroll withholding by using ezPaycheck.

    Indiana Tax Information

    General Information
    State AbbreviationIN
    State Tax Withholding State Code18
    Acceptable Exemption FormWH-4
    Basis For WithholdingState Exemptions
    Acceptable Exemption Data0/ Number of Exemptions/ Number of Additional Exemptions
    TSP DeferredYes
    Special CodingDetermine the Total Number Of Allowances field as follows: First Position - Enter 0 (zero). Second and Third Positions - Enter the number of exemptions claimed. Determine the Additional Exemptions Claimed field as follows: First and Second Positions - Enter the number of additional exemptions claimed on Line 5 of the WH-4. Valid values are 00 through 99. If no allowances are claimed, enter 00.
    Additional InformationNone
    Official State Tax WebsiteVisit Official Website

    How Allowances Work in This State

    Indiana's WH-4 provides 1 exemption each for the employee and spouse, plus 1 for each dependent. It also allows additional exemptions for age and blindness: if the employee and/or spouse is age 65 or older add one exemption for each; similarly, add one for each who is legally blind. Indiana also has a special rule: an extra exemption if you have a qualified adopted dependent (Indiana grants an additional exemption for each eligible adopted child).

    Allowance Breakdown

    ComponentAllowancesNotes
    Yourself1 exemptionBase exemption for employee
    Spouse1 exemptionIf filing jointly
    Each Dependent1 exemptionPer dependent
    Age 65+ (Employee)1 exemptionIf employee is 65 or older
    Age 65+ (Spouse)1 exemptionIf spouse is 65 or older
    Blind (Employee)1 exemptionIf employee is legally blind
    Blind (Spouse)1 exemptionIf spouse is legally blind
    Qualified Adopted Dependent1 exemption eachAdditional exemption per eligible adopted child

    Total Allowances Formula

    Total Exemptions = Yourself + Spouse + Dependents + Age/Blind Exemptions + Adopted Child Exemptions

    Special Notes

    These are captured by checkboxes on the WH-4 form for 65+ and blind status. Adopted children receive an additional exemption beyond the standard dependent exemption.

    For links to official state tax and revenue websites for all 50 states, visit our State and Local Tax Sites page.

    1. 1

      Subtract the biweekly Thrift Savings Plan contribution from the gross biweekly wages.

    2. 2

      Multiply the adjusted gross biweekly wages times 26 to obtain the annual wages.

    3. 3

      Determine the exemption allowance by applying the following guideline and subtract this amount from the result of step 2.

      Exemption Allowance = $1,000 × Number of Exemptions

    4. 4

      Determine the additional allowance by applying the following guideline and subtract this amount from the result of step 3 to compute the taxable income.

      Additional Allowance = $1,500 × Number of Additional Exemptions

    5. 5

      Optional: determine the adopted child dependent exemption applying the following guideline and subtract this amount from the result of step 4 to compute the taxable income.

      Adopted child exemption = $3,000 × Number of Adopted child exemption

    6. 6

      Multiply the taxable income computed in step 4 by 2.95 percent to obtain the annual Indiana tax withholding.

      Annual Tax = Taxable Income × 2.95%

    7. 7

      Divide the annual Indiana tax withholding by 26 to obtain the biweekly Indiana tax withholding.

    Want to calculate in an easier way? Learn how to calculate Indiana taxes via ezPaycheck below.

    Learn More

    Exemptions and Allowances

    Annual Withholding Allowance Table - Single
    Withholding AllowanceAnnual Amount
    1$1,000

    Formula: $1,000 × Number of Exemptions

    Number of exemptions claimed for self, spouse, over age 65, blindness, and dependents.

    Flat Rate Tax

    Rate: 2.95%

    Indiana uses a flat tax rate of 2.95% on taxable income after exemptions.

    2026 Indiana County Income Tax Rates and County Code

    County NameCounty CodeTax TypeRate
    Adams01COIT/CEDIT1.6000%
    Allen02COIT/CEDIT1.5900%
    Bartholomew03CAGIT/CEDIT1.7500%
    Benton04CAGIT/CEDIT1.7900%
    Blackford05CAGIT/CEDIT2.5000%
    Boone06COIT1.7000%
    Brown07CAGIT/CEDIT2.5234%
    Carroll08CAGIT/CEDIT2.4733%
    Cass09CAGIT/CEDIT2.9500%
    Clark10CAGIT/CEDIT2.0000%
    Clay11CAGIT2.3500%
    Clinton12CAGIT/CEDIT2.6500%
    Crawford13CAGIT/CEDIT1.6500%
    Daviess14CAGIT/CEDIT1.5000%
    Dearborn15COIT1.4000%
    Decatur16CAGIT/CEDIT2.4500%
    DeKalb17CAGIT/CEDIT2.1300%
    Delaware18COIT/CEDIT1.5000%
    Dubois19COIT/CEDIT1.2000%
    Elkhart20CAGIT/CEDIT2.0000%
    Fayette21COIT/CEDIT2.8200%
    Floyd22CAGIT/CEDIT1.8900%
    Fountain23CAGIT/CEDIT2.1000%
    Franklin24CAGIT/CEDIT1.7000%
    Fulton25CAGIT/CEDIT2.8800%
    Gibson26CEDIT1.3000%
    Grant27COIT/CEDIT2.7500%
    Greene28COIT2.3500%
    Hamilton29COIT1.1000%
    Hancock30CAGIT/CEDIT1.9400%
    Harrison31CAGIT/CEDIT1.0000%
    Hendricks32CAGIT/CEDIT1.7000%
    Henry33COIT/CEDIT2.0200%
    Howard34COIT/CEDIT2.3500%
    Huntington35CAGIT/CEDIT1.9500%
    Jackson36CAGIT/CEDIT2.1000%
    Jasper37CAGIT/CEDIT2.8640%
    Jay38CAGIT/CEDIT2.5000%
    Jefferson39CEDIT1.0300%
    Jennings40CAGIT/CEDIT2.5000%
    Johnson41CAGIT1.4000%
    Knox42COIT/CEDIT1.7000%
    Kosciusko43COIT/CEDIT1.0000%
    LaGrange44CAGIT/CEDIT1.6500%
    Lake45CAGIT/CEDIT1.5000%
    LaPorte46CAGIT/CEDIT1.4500%
    Lawrence47CAGIT1.7500%
    Madison48COIT/CEDIT2.2500%
    Marion49COIT2.0200%
    Marshall50CAGIT1.2500%
    Martin51COIT/CEDIT2.5000%
    Miami52COIT/CEDIT2.5400%
    Monroe53COIT2.1400%
    Montgomery54COIT/CEDIT2.6500%
    Morgan55CAGIT/CEDIT2.7200%
    Newton56CAGIT1.0000%
    Noble57CAGIT/CEDIT1.7500%
    Ohio58CAGIT2.0000%
    Orange59CAGIT/CEDIT1.7500%
    Owen60CAGIT/CEDIT2.5000%
    Parke61CAGIT/CEDIT2.6500%
    Perry62COIT/CEDIT1.4000%
    Pike63CEDIT1.2000%
    Porter64CEDIT0.5000%
    Posey65COIT/CEDIT1.4500%
    Pulaski66CAGIT/CEDIT2.8500%
    Putnam67CAGIT/CEDIT2.3000%
    Randolph68CAGIT/CEDIT3.0000%
    Ripley69CAGIT/CEDIT2.3800%
    Rush70CAGIT/CEDIT2.1000%
    St. Joseph71COIT/CEDIT1.7500%
    Scott72COIT/CEDIT2.1600%
    Shelby73CAGIT/CEDIT1.7000%
    Spencer74COIT/CEDIT0.8000%
    Starke75CAGIT/CEDIT1.7100%
    Steuben76CAGIT/CEDIT1.9900%
    Sullivan77CEDIT1.7000%
    Switzerland78COIT1.2500%
    Tippecanoe79COIT/CEDIT1.2800%
    Tipton80CAGIT/CEDIT2.6000%
    Union81CAGIT/CEDIT2.7500%
    Vanderburgh82COIT1.2500%
    Vermillion83CEDIT1.5000%
    Vigo84CAGIT/CEDIT2.0000%
    Wabash85CAGIT/CEDIT2.9000%
    Warren86CAGIT/CEDIT2.1200%
    Warrick87CEDIT1.0000%
    Washington88CAGIT/CEDIT2.0000%
    Wayne89CAGIT/CEDIT1.2500%
    Wells90CAGIT/CEDIT2.1000%
    White91CAGIT/CEDIT2.3200%
    Whitley92CAGIT/CEDIT1.6829%

    Indiana county income tax rates (COIT/CEDIT) vary by county and are in addition to the state tax rate.

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    Found a Discrepancy or Mistake?

    We strive to provide accurate and up-to-date Indiana state tax information for 2026. If you notice any discrepancies, errors, or have questions about the tax rates or calculations shown on this page, please contact our support team. We appreciate your feedback and will review and update the information as needed.

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