Indiana Paycheck Calculator

Calculate your take-home pay per paycheck for salary and hourly jobs after federal & Indiana taxes

Updated for 2024 tax year on Jul 06, 2024

Calculate your paycheck in these states

How to calculate your Indiana paycheck

Overview of Indiana

Indiana has a population of over 6 million (2019). Nearly 17% of the state’s non-farm workforce is employed in manufacturing, the highest of any state in the USA. The Hoosier State is known for its passion for sports, such as holding the Indianapolis 500 Car Race, and its love of basketball.

Brief summary:

• the income tax is a flat rate of 3.05%
• additional local income tax for each county
• no state-level payroll tax
• able to claim exemptions

Understanding your Indiana paycheck

Deciphering the complexities of your Indiana paycheck is essential for managing your finances, whether you are just entering the workforce or have years of experience. In this article, we’ll delve into the W-4, pre-tax and post-tax deductions, and more. Let’s unpack the components of your Indiana paycheck.

At the outset, your paycheck consists of gross pay, the total amount earned before any deductions. However, various factors will reduce this sum, culminating in your net pay. Let’s examine these components and determine where your hard-earned money goes.

A primary aspect of your paycheck is the federal income tax withheld, established using the W-4 form you submit to your employer. This crucial form calculates the appropriate withholding based on your filing status, income, dependents, and any additional income or deductions. Periodic updates to your W-4 form are necessary, especially following significant life events like marriage or childbirth, to ensure accurate tax withholding.

Indiana imposes a flat state income tax, meaning everyone pays the same percentage, regardless of income level. It’s essential to understand this distinction and how it affects your paycheck.

Payroll taxes, including Social Security and Medicare, also known as FICA taxes, form another vital part of your paycheck. Both employees and employers contribute to these essential programs.

Furthermore, your paycheck may include various deductions. Pre-tax deductions, such as contributions to retirement plans and Health Savings Accounts (HSAs), reduce your taxable income. This will allow you to save on taxes.

Conversely, post-tax deductions occur after determining your taxable income. These deductions may include union dues, charitable donations, and wage garnishments. As each situation is unique, staying informed about the specific deductions applicable to you is vital.

Once all deductions and taxes are accounted for, you’ll reach your net pay, the amount deposited into your bank account. Regularly reviewing your pay stubs ensures deduction accuracy and helps you understand the impact of financial decisions on your take-home pay.

Optimizing your tax situation may involve contributing to tax-advantaged accounts like 401(k) plans andHSAs. These pre-tax contributions reduce your taxable income, potentially lowering your taxes and bolstering your financial future.

Calculate your Indiana paycheck

Calculating your Indiana state income tax is similar to the steps we listed on our main paycheck calculator page:

1. Determine your gross income
   • Annual salary
     Annual salary = Gross income
   • Hourly wage
     Hourly wage × Hours worked per day × Days worked per week × Weeks worked per year = Your weekly paycheck
2. Work out your total federal income tax
   1. Gross income adjusted
      Gross income − Pre-tax deductions = Gross income adjusted
   2. Federal taxable income
      Gross income adjusted − Federal standard/itemized deductions = Federal taxable income
   3. Federal income tax liability
      Federal taxable income × Federal income tax rate = Federal income tax liability
   4. Federal payroll tax liability
      Gross income × Federal payroll tax rate = Federal payroll tax liability
3. Calculate your total Indiana state income tax
   1. Indiana state taxable income
      Gross income adjusted − (Indiana state itemized deductions + Indiana state exemptions) = Indiana state taxable income
   2. Indiana state income tax liability
      Indiana state taxable income × Indiana state income tax rate = Indiana state income tax liability
4. Derive your Indiana local income tax liability
   (Gross income adjusted or Indiana state taxable income) × Indiana local income tax rate = Indiana local income tax liability
5. Figure out your net pay
   You need to account for any other deductions such as health insurance, 401(k) contribution, as well as additional withholdings.
   Gross income − (Total income tax liability + Total payroll tax liability + Total pre-tax deductions + Total post-tax deductions + Total withholdings) = Your net pay
6. Divide your net pay by your pay frequency
   
   • Daily
     Your net pay / Days worked per week / Weeks worked per year = Your daily paycheck
   • Weekly
     Your net pay / 52 = Your weekly paycheck
   • Bi-weekly
     Your net pay / 26 = Your bi-weekly paycheck
   • Semi-monthly
     Your net pay / 24 = Your semi-monthly paycheck
   • Monthly
     Your net pay / 12 = Your monthly paycheck
   • Quarterly
     Your net pay / 4 = Your quarterly paycheck
   • Semi-annual
     Your net pay / 2 = Your semi-annual paycheck
   • Annual
     Your net pay = Your annual paycheck

State income tax brackets

Refer to Tax Foundation for more details.

Local income tax

State exemptions

There are state-level exemptions for all types of filers and dependents. Refer to Tax Foundation for more details.

FAQs