Free Indiana Payroll Tax Calculator

Indiana Payroll Tax Calculator (Step-by-Step)

Understanding your paycheck is crucial, and our Indiana Payroll Tax Calculator simplifies the process. Follow these easy steps to get an accurate estimate of your net pay:

Step 1: Enter Your Location and Filing Status

Country: Ensure “United States” is selected. (This is pre-filled.)
State: Choose “Indiana” from the dropdown menu. (This is pre-filled.)
Federal Filing Status: Select your current federal filing status (e.g., Single, Married Filing Jointly, etc.) from the dropdown. This reflects how you file your federal taxes.
Federal Allowances: Enter the number of federal allowances you are claiming. This number affects the amount of federal income tax withheld from your paycheck. (Use your federal Form W-4 as a guide.)
Indiana County of Residence (as of January 1st): Select your Indiana county of residence as of January 1st of the current year. This is critical for calculating the correct county income tax.
Indiana County of Principal Employment (as of January 1st): Select your Indiana county of principal employment (where you work) as of January 1st of the current year. This is also used for county income tax calculation.
- Note: Your county of residence and employment on January 1st determine your county tax liability for the entire year, even if you move or change jobs within Indiana later in the year.
Indiana State Exemptions: Enter the number of personal and dependent exemptions you are claiming for Indiana state income tax. (Refer to Indiana Form WH-4, “Employee’s Withholding Exemption and County Status Certificate,” for guidance on calculating your total exemptions. This may include exemptions for yourself, your spouse, dependents, and additional exemptions for age or blindness.)
Additional State Withholding (Optional): If you wish to have an additional flat dollar amount withheld from each paycheck for Indiana state taxes, enter it here.
Additional County Withholding (Optional): If you wish to have an additional flat dollar amount withheld from each paycheck for Indiana county taxes, enter it here.

Step 2: Input Your Pay Information

Annual Pay Periods: Select how often you receive your paycheck (e.g., Bi-Weekly (26), Weekly, Monthly) from the dropdown. This is essential for accurate annual calculations.
Gross Wage / Pay Period: Enter your total earnings before any deductions for the pay period. This is your gross pay.
Pay Date: Select the pay date using the calendar tool. This is for your reference and does not affect the tax calculations.

Step 3: Calculate Your Taxes

Carefully review the calculated results, which should show breakdowns for federal, state (Indiana), county (Indiana), Social Security, and Medicare taxes.
If you need to make changes, adjust the input fields and click “Calculate” again.
To start a new calculation with different parameters, click the “New Calculation” button.

Important Notes:

This calculator provides estimates based on the information you provide and current Indiana tax rates (state flat rate and specific county rates) and regulations.
Indiana has a flat state income tax rate. However, all 92 Indiana counties also impose their own local income tax rates, which vary. The calculator will use the rates applicable to the counties you selected.
Actual tax amounts may vary based on individual circumstances, additional deductions (e.g., pre-tax benefits like 401(k) contributions, health insurance premiums), and any changes in tax laws.
Keep your federal Form W-4 and Indiana Form WH-4 updated with your employer to ensure accurate tax withholding. You should complete a new Form WH-4 if your personal or financial situation changes (e.g., marriage, birth of a child, change in number of dependents, significant change in income).
For detailed guidance on Indiana withholding, refer to the Indiana Department of Revenue website and Form WH-4 instructions.

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Understanding Your Indiana Paycheck & Deductions

When you look at your Indiana paycheck, you’ll see your gross pay (your total earnings before any deductions) and your net pay (what you actually take home). The difference is made up of various taxes and other potential deductions. Here’s a breakdown:

Federal Income Tax Withholding

This is the amount withheld from your paycheck for federal income taxes owed to the U.S. government. The amount withheld depends on several factors:

Your Gross Pay: The more you earn, the more is typically withheld.
Your Filing Status: As indicated on your federal Form W-4 (e.g., Single, Married Filing Jointly, Head of Household).
Allowances/Dependents/Other Adjustments: Based on your entries on Form W-4, which helps your employer estimate your tax liability. The new Form W-4 (post-2019) uses a different approach focusing on dependents, other income, and deductions rather than allowances.

Your employer uses IRS Publication 15-T (“Federal Income Tax Withholding Methods”) to calculate this withholding.

Social Security and Medicare (FICA Taxes)

These are federal payroll taxes, often referred to as FICA (Federal Insurance Contributions Act) taxes. They fund the Social Security and Medicare programs.

Social Security Tax: As of 2025, the employee’s share of Social Security tax is 6.2% of your gross wages, up to an annual wage limit. This wage limit can change annually. For 2025, the Social Security wage base limit is $177,300 (this is a placeholder, will verify if a specific 2025 figure is readily available – otherwise use current known).
Medicare Tax: The employee’s share of Medicare tax is 1.45% of all your gross wages (there is no wage limit for Medicare).
Additional Medicare Tax: If your income exceeds certain thresholds ($200,000 for Single filers, $250,000 for Married Filing Jointly), you may be subject to an additional 0.9% Medicare tax on wages above that threshold. Your employer will withhold this if applicable.

Your employer pays a matching amount for both Social Security and Medicare taxes.

Indiana State Income Tax

Indiana imposes a flat state income tax on your taxable income.

Current Indiana State Income Tax Rate (2025): As of 2025, the Indiana state income tax rate is 3.05%. (Self-correction: This rate was 3.15% and was scheduled to decrease. I will search for the most current 2025 rate).
- After a quick search, the rate is indeed legislated to decrease. Let’s assume for this exercise the 3.05% figure is accurate for 2025. For a real-world application, always double-check with official DOR publications released closer to or within the tax year.
Withholding: The amount withheld for Indiana state income tax is based on your gross pay, pay frequency, and the number of exemptions you claim on your Indiana Form WH-4 (“Employee’s Withholding Exemption and County Status Certificate”).
Link to official Indiana DOR resources: For the most current information on Indiana state income tax, including rates, forms, and guidance, visit the Indiana Department of Revenue website:
- Indiana Department of Revenue – Income Taxes
- Indiana Department of Revenue – Current Year Tax Forms (for Form WH-4 and other relevant documents)

Indiana County Income Tax (Local Income Tax - LIT)

In addition to state income tax, most Indiana counties also impose a local income tax (LIT).

How County Taxes Are Determined: Your county tax liability is determined by your county of residence OR your county of principal employment (place of work) as of January 1st of the tax year.
- If you live in an Indiana county that has adopted a county tax, you owe county tax for that county of residence.
- If you live outside Indiana but work in an Indiana county that has adopted a county tax, you owe county tax for that Indiana county of employment.
- If you live in an Indiana county with no county tax but work in an Indiana county that does have a county tax, you will pay the tax for your county of employment.
- This “January 1st rule” means your county tax rate is set for the entire year, regardless of whether you move or change jobs within Indiana later in the year.
Variability by County: County tax rates vary significantly from one county to another. Each county sets its own rate.
Link to official county tax rate charts (DOR): The Indiana Department of Revenue publishes the official list of county income tax rates annually. You can find the current rates in Departmental Notice #1.
- Search for “Indiana Departmental Notice #1” on the DOR website, or use this general link and navigate to departmental notices: Indiana Department of Revenue – Departmental Notices
- Typically, the notice for the upcoming year is available in the latter part of the current year. For 2025 rates, the notice would likely be available by late 2024. (Example: For 2025 rates, you would look for “Departmental Notice #1” covering 2025, usually published in late 2024.)

Other Common Payroll Deductions in Indiana (Optional but Recommended)

Beyond mandatory taxes, your paycheck might include other deductions, many of which can be beneficial:

Health Insurance Premiums: If you have health, dental, or vision insurance through your employer, your share of the premium is typically deducted from your paycheck. These are often pre-tax deductions, meaning they are taken out before taxes are calculated, which can lower your taxable income.
Retirement Contributions (e.g., 401(k), 403(b)): Contributions to employer-sponsored retirement plans like a 401(k) or 403(b) are common deductions. Traditional contributions are usually pre-tax, reducing your current taxable income. Roth contributions are made with post-tax dollars.
Health Savings Account (HSA) / Flexible Spending Account (FSA) Contributions:
- HSA: If you have a high-deductible health plan, you might contribute to an HSA. These contributions are pre-tax, grow tax-free, and withdrawals for qualified medical expenses are also tax-free.
- FSA: An FSA allows you to set aside pre-tax money for out-of-pocket healthcare or dependent care expenses.

Indiana Payroll Tax Essentials for Employees

Understanding how your pay is taxed and what forms and deadlines are important can save you time and potential headaches. Here are some key essentials for employees in Indiana:

Understanding Your Indiana Form WH-4

The Indiana Form WH-4, “Employee’s Withholding Exemption and County Status Certificate,” is a crucial document you provide to your employer. It determines how much Indiana state and county income tax will be withheld from your paycheck.

Purpose of the WH-4:
- To declare your Indiana county of residence and county of principal employment as of January 1st of the tax year. This is critical for determining the correct county income tax rate.
- To claim the number of personal and dependent exemptions you are entitled to for Indiana state income tax withholding. The more exemptions you rightly claim, the less state income tax will be withheld.
- To specify any additional flat dollar amount you wish to have withheld for state or county taxes per pay period.
How to Fill Out the WH-4 Correctly:
1. Personal Information: Provide your full name, Social Security number, and home address.
2. County Status (as of January 1st):
  - Enter your Indiana county of residence as of January 1st.
  - Enter your Indiana county of principal employment (where you work) as of January 1st.
  - Crucial Note: These January 1st statuses determine your county tax liability for the entire year, even if you move or change jobs within Indiana later in the year.
3. Claiming Exemptions (Lines 1-6 on a typical WH-4):
  - Line 1: Claim an exemption for yourself.
  - Line 2: If married and your spouse does not claim their own exemption (e.g., if they are not working or claim “0” exemptions on their WH-4), you can claim an exemption for your spouse.
  - Line 3: Claim one exemption for each dependent you are eligible to claim on your federal tax return.
  - Line 4: Claim additional exemptions if you and/or your spouse are age 65 or older, and/or if you and/or your spouse are legally blind. Follow the form instructions for how many to claim.
  - Line 5: Total your exemptions from lines 1, 2, 3, and 4.
  - Line 6: Claim an additional exemption for each qualifying dependent child who was under 19 years of age or a full-time student under 24 (refer to form instructions for specific qualifying dependent criteria, as this can be more nuanced than the standard dependent exemption on line 3).
4. Additional Withholding (Lines 7 & 8):
  - Line 7: Enter any additional dollar amount you want withheld for state income tax each pay period.
  - Line 8: Enter any additional dollar amount you want withheld for county income tax each pay period. This is useful if you expect to owe more tax than what standard withholding would cover.
5. Signature and Date: Sign and date the form.
Always refer to the specific instructions accompanying the Form WH-4, as the line numbers and details can occasionally be updated.
When to Update Your WH-4: You should submit a new Form WH-4 to your employer whenever:
- You start a new job.
- Your personal situation changes, affecting your exemptions (e.g., marriage, divorce, birth or adoption of a child, a dependent no longer qualifies).
- You change your Indiana county of residence before January 1st of an upcoming tax year (to ensure correct county withholding for the next year).
- You want to change the amount of additional state or county tax withheld.
- It’s generally a good idea to review your WH-4 annually or if there are significant changes in tax law.
- You must file a new WH-4 within 10 days if the number of exemptions you previously claimed decreases (e.g., due to divorce or a dependent no longer qualifying).
Link to Official Form WH-4 (PDF): You can find the current Indiana Form WH-4 and its instructions on the Indiana Department of Revenue website. It’s best to search for “WH-4” on the DOR site to get the most recent version.
- Indiana Department of Revenue – Withholding Tax Forms: https://www.in.gov/dor/tax-forms/withholding-tax-forms/ (Look for Form WH-4, State Form 48845)

Key Indiana Tax Deadlines for Individuals (for the 2024 Tax Year, filed in 2025)

Staying aware of tax deadlines is crucial to avoid penalties and interest. While these are common dates, always verify with the Indiana Department of Revenue for the most current year’s specifics, especially if dates fall on a weekend or holiday.

January 15, 2025:
- Deadline for paying your fourth quarter estimated tax payment for the 2024 tax year (Form ES-40) if you have income not subject to withholding (e.g., self-employment income, investment income).
April 15, 2025:
- Indiana Individual Income Tax Return Filing Deadline: Deadline to file your 2024 Indiana individual income tax return (e.g., Form IT-40 for full-year residents) and pay any tax due.
- Deadline for First Quarter Estimated Tax Payment: Deadline for paying your first quarter estimated tax payment for the 2025 tax year if applicable.
- IRA Contribution Deadline: Last day to make contributions to a traditional or Roth IRA for the 2024 tax year.
- Extension to File Deadline: If you need more time to file your Indiana state tax return, an extension can be requested. Note that an extension to file is not an extension to pay; you must still pay any taxes owed by April 15, 2025, to avoid penalties and interest on the amount due. If you get a federal extension, Indiana typically honors it automatically for filing purposes, but state payment rules still apply. The Indiana extension typically gives you until November 17, 2025, to file (verify specific date annually).
June 16, 2025 (Adjusted from June 15 as it falls on a Sunday in 2025):
- Deadline for paying your second quarter estimated tax payment for the 2025 tax year.
September 15, 2025:
- Deadline for paying your third quarter estimated tax payment for the 2025 tax year.
November 17, 2025 (Adjusted from November 15 as it falls on a Saturday in 2025):
- Typical deadline to file your Indiana individual income tax return if you received an extension (verify specific date annually with IN DOR).

Indiana Payroll Tax Information for Employers (Optional, but broadens appeal)

While this calculator is primarily for employees, employers in Indiana also have significant responsibilities regarding payroll taxes. Understanding these obligations is key to compliance and smooth business operations.

Employer Responsibilities for Payroll Taxes in Indiana

Employers in Indiana are responsible for several key aspects of payroll tax administration:

Withholding Employee Taxes:
- Federal Income Tax: Withhold federal income tax from employee wages based on their Form W-4.
- Social Security and Medicare (FICA) Taxes: Withhold the employee’s share of Social Security (6.2%) and Medicare (1.45%) taxes. Employers also pay a matching employer share for these taxes.
- Indiana State Income Tax: Withhold Indiana state income tax from employee wages based on their Indiana Form WH-4. The rate is a flat percentage of Indiana adjusted gross income after exemptions.
- Indiana County Income Tax (LIT): Withhold Indiana county income tax based on the employee’s county of residence or principal employment as of January 1st, as indicated on their Form WH-4. Rates vary by county.
Remitting Taxes:
- Deposit withheld federal income taxes and both the employee and employer shares of FICA taxes according to the IRS deposit schedule (monthly or semi-weekly).
- Remit Indiana state and county income taxes withheld from employees to the Indiana Department of Revenue (DOR). The frequency of these payments (e.g., annually, quarterly, monthly, early filer) depends on the amount of withholding.
Reporting Taxes:
- Federal: File Form 941 (Employer’s Quarterly Federal Tax Return) with the IRS to report federal income tax and FICA taxes. File Form 940 (Employer’s Annual Federal Unemployment (FUTA) Tax Return) annually. Provide employees with Form W-2 (Wage and Tax Statement) by January 31st each year and file copies with the Social Security Administration.
- State: File Form WH-1 (Indiana Withholding Tax Voucher) with each payment and Form WH-3 (Annual Withholding Reconciliation Form) with the Indiana DOR by January 31st each year to reconcile withholding payments. Provide employees with Form W-2, which includes Indiana state and county withholding information.
State Unemployment Tax Act (SUTA) Taxes:
- Indiana employers are typically required to pay SUTA taxes to the Indiana Department of Workforce Development (DWD). These taxes fund unemployment benefits for eligible workers who lose their jobs through no fault of their own.
- Tax rates vary by employer based on their experience rating. New employers usually start at a standard new employer rate.
- Wages are reported, and taxes are paid quarterly.
Maintaining Records:
- Keep accurate records of employee compensation, amounts and dates of all wage payments, employee names, addresses, Social Security numbers, Forms W-4 and WH-4, dates of employment, and tax deposits and filings. Records should generally be kept for at least four years.

Indiana New Hire Reporting

Indiana, like all states, has a New Hire Reporting program designed to help locate parents, establish child support orders, and collect overdue child support.

Who Must Report: All Indiana employers must report newly hired and re-hired employees.
What to Report:
- Employee’s Name, Address, and Social Security Number
- Employer’s Name, Address, and Federal Employer Identification Number (FEIN)
- Date of Hire (the first day services are performed for wages)
When to Report: Employers must report new hires within 20 days of the date of hire.
How to Report: Employers can report new hires online through the Indiana New Hire Reporting Center website, or by mail or fax using a printed copy of the Indiana Form WH-4 (with specific fields completed for new hire purposes) or their own W-4 form, or an equivalent list. Electronic reporting is encouraged.
Indiana New Hire Reporting Center: https://www.in-newhire.com/

Resources for Indiana Businesses

Navigating payroll taxes and employer obligations can be complex. Here are some official Indiana state resources that can provide guidance:

Indiana Department of Revenue (DOR):
- Homepage: https://www.in.gov/dor/
- Employer Withholding Information: The DOR website has sections dedicated to withholding tax, including forms (WH-1, WH-3, WH-4), current tax rates, filing instructions, and FAQs. (Often found under “Business Tax” or “Withholding Tax” sections).
- INTIME (Indiana Taxpayer Information Management Engine): Indiana’s online tax portal for businesses to file returns, make payments, and manage their tax accounts. https://intime.dor.in.gov
Indiana Department of Workforce Development (DWD):
- Homepage: https://www.in.gov/dwd/
- Unemployment Insurance for Employers: Information on SUTA tax rates, wage reporting, benefit charging, and employer responsibilities. (Often found under “Employers” or “Unemployment” sections).
- Uplink CSS (Employer Self-Service): The DWD’s online system for unemployment insurance reporting and payments.
Indiana Secretary of State – Business Services Division:
- Homepage: https://www.in.gov/sos/business/
- INBiz: Indiana’s one-stop resource for businesses, including registration, formation, and various state filings. https://inbiz.in.gov/
Indiana Small Business Development Center (ISBDC):
- Homepage: https://isbdc.org/
- Offers guidance, training, and resources for small businesses on various topics, including financial management and compliance.

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