Indiana Income Tax Guide for 2026
Overview
Indiana has a flat income tax rate of 2.95%. 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 | 2.95% |
Married Filing Jointly
| Income Range | Tax Rate |
|---|---|
| All income | 2.95% |
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 rate is 2.95% for 2026 (down from 3.0% in 2025); the Department of Revenue states it will adjust to 2.90% in 2027
- Indiana starts from federal adjusted gross income and has no standard deduction; it allows a $1,000 personal exemption per taxpayer and spouse
- Dependent exemption is $1,000 plus an additional $1,500 per qualifying dependent child ($2,500 total); a supplemental $1,500 applies in the first year a dependent child is claimed and $3,000 for adopted children
Charts
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Sources
The 2026 figures for Indiana on this page were compiled from the following official government publications:
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