Indianapolis Local Income Tax: What It Means for Your Paycheck (2026)
Calculator scope: ExactTakeHome currently calculates federal and Indiana state income tax. Local income taxes are not included in the calculator.
What is Indianapolis's Local Income Tax?
Indianapolis levies a county income tax (marion county) on earned wages at 1.77% for residents. Marion County income tax withheld at the state level for Marion County residents. According to Indiana Department of Revenue, 2026, the Indianapolis county income tax (marion county) rate for residents is 1.77% as of 2026.
How Much Does Indianapolis's Local Tax Cost?
| Annual Salary | Estimated Local Tax (1.77%) | Monthly Local Tax |
|---|---|---|
| $40,000 | $708 | $59 |
| $60,000 | $1,062 | $89 |
| $75,000 | $1,328 | $111 |
| $100,000 | $1,770 | $148 |
| $150,000 | $2,655 | $221 |
These are estimates of the local tax component only. Your total paycheck deductions also include federal income tax, Social Security, Medicare, and Indiana state income tax.
Calculate Your Federal and State Taxes
ExactTakeHome currently calculates federal and Indiana state income tax for Indianapolis residents. To estimate your take-home pay excluding local tax, use the Indiana calculator and add the local tax amount from the table above for a full planning estimate.
Does Indianapolis's Local Tax Apply to Remote Workers?
Indiana county income tax is generally based on your county of residence as of January 1. Marion County (Indianapolis) residents owe the Marion County rate even when working remotely. Verify your county of residence with the Indiana Department of Revenue.
Frequently Asked Questions
1.77% county income tax (marion county) for residents. Source: Indiana Department of Revenue, 2026.
Residents of Indianapolis and workers who earn wages from work performed in Indianapolis may owe local income tax. Rules vary by residence and work location — verify with Indiana Department of Revenue.
An estimated $1,328 per year ($111 per month) at the 1.77% rate. This is an estimate of the local component only.
No. ExactTakeHome currently calculates federal and Indiana state income tax. Local income taxes are not included in the calculator.
Use the Indiana calculator on ExactTakeHome for federal and state withholding, then subtract the estimated local tax from the table on this page for a planning estimate.