December, 17th 2025
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.
| State Abbreviation | IN |
|---|---|
| State Tax Withholding State Code | 18 |
| Acceptable Exemption Form | WH-4 |
| Basis For Withholding | State Exemptions |
| Acceptable Exemption Data | 0/ Number of Exemptions/ Number of Additional Exemptions |
| TSP Deferred | Yes |
| Special Coding | Determine 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 Information | None |
| Official State Tax Website | Visit Official Website |
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).
| Component | Allowances | Notes |
|---|---|---|
| Yourself | 1 exemption | Base exemption for employee |
| Spouse | 1 exemption | If filing jointly |
| Each Dependent | 1 exemption | Per dependent |
| Age 65+ (Employee) | 1 exemption | If employee is 65 or older |
| Age 65+ (Spouse) | 1 exemption | If spouse is 65 or older |
| Blind (Employee) | 1 exemption | If employee is legally blind |
| Blind (Spouse) | 1 exemption | If spouse is legally blind |
| Qualified Adopted Dependent | 1 exemption each | Additional exemption per eligible adopted child |
Total Exemptions = Yourself + Spouse + Dependents + Age/Blind Exemptions + Adopted Child Exemptions
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.
Subtract the biweekly Thrift Savings Plan contribution from the gross biweekly wages.
Multiply the adjusted gross biweekly wages times 26 to obtain the annual wages.
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
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
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
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%
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| Withholding Allowance | Annual Amount |
|---|---|
| 1 | $1,000 |
Formula: $1,000 × Number of Exemptions
Number of exemptions claimed for self, spouse, over age 65, blindness, and dependents.
Rate: 2.95%
Indiana uses a flat tax rate of 2.95% on taxable income after exemptions.
| County Name | County Code | Tax Type | Rate |
|---|---|---|---|
| Adams | 01 | COIT/CEDIT | 1.6000% |
| Allen | 02 | COIT/CEDIT | 1.5900% |
| Bartholomew | 03 | CAGIT/CEDIT | 1.7500% |
| Benton | 04 | CAGIT/CEDIT | 1.7900% |
| Blackford | 05 | CAGIT/CEDIT | 2.5000% |
| Boone | 06 | COIT | 1.7000% |
| Brown | 07 | CAGIT/CEDIT | 2.5234% |
| Carroll | 08 | CAGIT/CEDIT | 2.4733% |
| Cass | 09 | CAGIT/CEDIT | 2.9500% |
| Clark | 10 | CAGIT/CEDIT | 2.0000% |
| Clay | 11 | CAGIT | 2.3500% |
| Clinton | 12 | CAGIT/CEDIT | 2.6500% |
| Crawford | 13 | CAGIT/CEDIT | 1.6500% |
| Daviess | 14 | CAGIT/CEDIT | 1.5000% |
| Dearborn | 15 | COIT | 1.4000% |
| Decatur | 16 | CAGIT/CEDIT | 2.4500% |
| DeKalb | 17 | CAGIT/CEDIT | 2.1300% |
| Delaware | 18 | COIT/CEDIT | 1.5000% |
| Dubois | 19 | COIT/CEDIT | 1.2000% |
| Elkhart | 20 | CAGIT/CEDIT | 2.0000% |
| Fayette | 21 | COIT/CEDIT | 2.8200% |
| Floyd | 22 | CAGIT/CEDIT | 1.8900% |
| Fountain | 23 | CAGIT/CEDIT | 2.1000% |
| Franklin | 24 | CAGIT/CEDIT | 1.7000% |
| Fulton | 25 | CAGIT/CEDIT | 2.8800% |
| Gibson | 26 | CEDIT | 1.3000% |
| Grant | 27 | COIT/CEDIT | 2.7500% |
| Greene | 28 | COIT | 2.3500% |
| Hamilton | 29 | COIT | 1.1000% |
| Hancock | 30 | CAGIT/CEDIT | 1.9400% |
| Harrison | 31 | CAGIT/CEDIT | 1.0000% |
| Hendricks | 32 | CAGIT/CEDIT | 1.7000% |
| Henry | 33 | COIT/CEDIT | 2.0200% |
| Howard | 34 | COIT/CEDIT | 2.3500% |
| Huntington | 35 | CAGIT/CEDIT | 1.9500% |
| Jackson | 36 | CAGIT/CEDIT | 2.1000% |
| Jasper | 37 | CAGIT/CEDIT | 2.8640% |
| Jay | 38 | CAGIT/CEDIT | 2.5000% |
| Jefferson | 39 | CEDIT | 1.0300% |
| Jennings | 40 | CAGIT/CEDIT | 2.5000% |
| Johnson | 41 | CAGIT | 1.4000% |
| Knox | 42 | COIT/CEDIT | 1.7000% |
| Kosciusko | 43 | COIT/CEDIT | 1.0000% |
| LaGrange | 44 | CAGIT/CEDIT | 1.6500% |
| Lake | 45 | CAGIT/CEDIT | 1.5000% |
| LaPorte | 46 | CAGIT/CEDIT | 1.4500% |
| Lawrence | 47 | CAGIT | 1.7500% |
| Madison | 48 | COIT/CEDIT | 2.2500% |
| Marion | 49 | COIT | 2.0200% |
| Marshall | 50 | CAGIT | 1.2500% |
| Martin | 51 | COIT/CEDIT | 2.5000% |
| Miami | 52 | COIT/CEDIT | 2.5400% |
| Monroe | 53 | COIT | 2.1400% |
| Montgomery | 54 | COIT/CEDIT | 2.6500% |
| Morgan | 55 | CAGIT/CEDIT | 2.7200% |
| Newton | 56 | CAGIT | 1.0000% |
| Noble | 57 | CAGIT/CEDIT | 1.7500% |
| Ohio | 58 | CAGIT | 2.0000% |
| Orange | 59 | CAGIT/CEDIT | 1.7500% |
| Owen | 60 | CAGIT/CEDIT | 2.5000% |
| Parke | 61 | CAGIT/CEDIT | 2.6500% |
| Perry | 62 | COIT/CEDIT | 1.4000% |
| Pike | 63 | CEDIT | 1.2000% |
| Porter | 64 | CEDIT | 0.5000% |
| Posey | 65 | COIT/CEDIT | 1.4500% |
| Pulaski | 66 | CAGIT/CEDIT | 2.8500% |
| Putnam | 67 | CAGIT/CEDIT | 2.3000% |
| Randolph | 68 | CAGIT/CEDIT | 3.0000% |
| Ripley | 69 | CAGIT/CEDIT | 2.3800% |
| Rush | 70 | CAGIT/CEDIT | 2.1000% |
| St. Joseph | 71 | COIT/CEDIT | 1.7500% |
| Scott | 72 | COIT/CEDIT | 2.1600% |
| Shelby | 73 | CAGIT/CEDIT | 1.7000% |
| Spencer | 74 | COIT/CEDIT | 0.8000% |
| Starke | 75 | CAGIT/CEDIT | 1.7100% |
| Steuben | 76 | CAGIT/CEDIT | 1.9900% |
| Sullivan | 77 | CEDIT | 1.7000% |
| Switzerland | 78 | COIT | 1.2500% |
| Tippecanoe | 79 | COIT/CEDIT | 1.2800% |
| Tipton | 80 | CAGIT/CEDIT | 2.6000% |
| Union | 81 | CAGIT/CEDIT | 2.7500% |
| Vanderburgh | 82 | COIT | 1.2500% |
| Vermillion | 83 | CEDIT | 1.5000% |
| Vigo | 84 | CAGIT/CEDIT | 2.0000% |
| Wabash | 85 | CAGIT/CEDIT | 2.9000% |
| Warren | 86 | CAGIT/CEDIT | 2.1200% |
| Warrick | 87 | CEDIT | 1.0000% |
| Washington | 88 | CAGIT/CEDIT | 2.0000% |
| Wayne | 89 | CAGIT/CEDIT | 1.2500% |
| Wells | 90 | CAGIT/CEDIT | 2.1000% |
| White | 91 | CAGIT/CEDIT | 2.3200% |
| Whitley | 92 | CAGIT/CEDIT | 1.6829% |
Indiana county income tax rates (COIT/CEDIT) vary by county and are in addition to the state tax rate.
ezPaycheck simplifies payroll calculations, including Indiana's withholding rules. Easily compute taxes, generate reports, and print paychecks or tax forms.
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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