Indiana Income Tax Guide for 2025
Overview
Indiana has a flat income tax rate of 3%. Capital gains are taxed as ordinary income. The state offers personal exemptions of $1,000 and dependent exemptions of $2,500.
Income Tax Rates
Single Filers
| Income Range | Tax Rate |
|---|---|
| All income | 3% |
Married Filing Jointly
| Income Range | Tax Rate |
|---|---|
| All income | 3% |
Capital Gains Tax
Capital gains are taxed at the same rates as ordinary income.
Deductions & Exemptions
| Type | Amount |
|---|---|
| Personal Exemption (Single) | $1,000 |
| Personal Exemption (Married) | $2,000 |
| Dependent Exemption | $2,500 |
Additional Information
- Flat 3.0% state adjusted gross income tax rate for 2025; the rate falls to 2.95% for 2026. Counties impose additional local income taxes
- Indiana starts from federal adjusted gross income and has no standard deduction; it allows a $1,000 exemption for the taxpayer and $1,000 for a spouse
- Dependent exemption is $1,000 per dependent plus an additional $1,500 for a qualifying dependent child ($2,500 total); the additional exemption is $3,000 in the first year a dependent child qualifies
Charts
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Sources
The 2025 figures for Indiana on this page were compiled from the following official government publications:
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