Indiana has one of the lowest state rates in this batch, 2.95 percent, and that low rate is the reason the state line on an $80,000 salary is only $2,360. It is also the reason the headline figure is incomplete on its own. County income taxes are a real second layer in Indiana, and they are not in the calculator figure, so a reader who lives in a county that levies one will pay more than this guide's state line shows.
Enter your salary and filing status to see the Indiana line alongside federal tax and FICA.
The state line, before any county layer
Take a single filer with an $80,000 salary and no pre-tax deductions. With no standard deduction in the Tax Foundation table, the calculator figure is $80,000 multiplied by 2.95 percent, which is $2,360. Paid biweekly, that is about $90.77 per paycheck, and the effective rate on gross pay is 2.95 percent, the same as the marginal rate, because nothing is deducted first.
Compared with the other flat states in this batch, Indiana is the cheapest state line at $80,000: below Iowa at $2,428.20, below Kentucky at $2,682.40, and well below Illinois at $3,960. That comparison is only fair on the state layer alone, which is exactly why the county layer matters. A state-only ranking can flip once a county rate is added, and this guide does not rank counties, because county rates vary by county and the calculator does not include them.
Two items that sit outside the state figure
First, Indiana gives a personal exemption of $1,000 single and $2,000 joint, and that exemption is not in the standard deduction fields. The $2,360 above is the calculator's state figure, so it matches the tool, while a return claiming the exemption would have lower taxable income. Second, county income taxes are excluded and must be a separate selector if added. Do not treat $2,360 as a total local-plus-state bill, and do not add a county rate from memory to it; check the rate for the county where the work is performed.
Source for the state rate: Tax Foundation 2026 State Income Tax Rates and Brackets. This is general information about Indiana's state layer, not a determination for an individual return. For the federal slice on the same salary, the federal brackets guide linked from the paycheck hub is the place to look.
FAQs
Is $2,360 the total Indiana tax on $80,000?
No, it is the state layer only. County income taxes are excluded from the calculator figure, so a filer in a county that levies one will pay more in total.
Why is Indiana's rate so much lower than Illinois's?
Indiana's flat rate is 2.95 percent against Illinois's 4.95 percent, and neither state has a standard deduction in the Tax Foundation table. The rate difference alone explains the $1,600 gap on an $80,000 salary, before any county layer.
Does filing jointly change Indiana's rate?
No, the rate stays 2.95 percent, and the calculator figure at $80,000 is $2,360 for both single and joint filers. The difference is the larger joint exemption, which sits outside the calculator figure.