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Indiana Paycheck Calculator

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Indiana Paycheck Quick Facts

  • Indiana income tax rate: 3.3%
  • Median household income: $49,446 (U.S. Census Bureau)
  • Number of counties that have local income taxes: 92

Employers will withhold federal and FICA taxes from your paycheck. Medicare and Social Security taxes together make up FICA taxes. Employers withhold 1.45% in Medicare taxes and 6.2% in Social Security taxes per paycheck, and also match this amount for a total contribution of 2.9% and 12.4% respectively. Note that if you are self-employed, you need to pay that total yourself. Additionally wages that exceed $200,000 are subject to a 0.9% Medicare surtax.

The IRS receives the federal taxes withheld from your wages and puts them toward your annual income taxes. The amount of federal taxes taken out depends on the information you provided on your W-4 form. Remember whenever you start a new job or need to make changes, you’ll need to fill out a new W-4. How many allowances you are eligible for and how many you claim on your W-4 affects how much you will pay in taxes each pay period.

Your marital status is one factor that affects your allowances and also your filing status (whether you are married and file jointly or separately). If you have qualifying dependents that also plays a role in how many allowances you can claim. The more allowances you take, the less you will pay in taxes and the bigger your paychecks will be, but be very careful about claiming too many allowances and underpaying your taxes all year long. If you do this, you will be hit with a big bill come April and you could even face penalties for underpaying.

It’s also worth noting that if you have more than one job, you cannot claim the same allowances for both. So say for example you have two allowances that you want to claim and also two jobs. You can claim one allowance for each job or you could claim both with one job and none for the other.

YearMedian Household Income
2014$49,446
2013$47,529
2012$46,974
2011$46,438
2010$44,613
2009$45,424
2008$47,966
2007$47,448
2006$45,394

Residents of Indiana are taxed at a flat state income rate of 3.3%. That means no matter how much you make, you’re taxed at the same rate. Hoosiers can rejoice, as the tax rate is set to go down to 3.23% in 2017.

All counties in Indiana impose their own local income tax rates in addition to the state rate that all employees must pay. Indiana counties’ local tax rates range from 0.3% to 3.38% for residents. Non-residents are taxed differently and those rates are from 0.15% to 1.24%. Check out the table provided below for Indiana county tax rates for residents and nonresidents.

CountyResident Local Tax RateNonresident Local Tax Rate
Adams County1.6240%0.79900%
Allen County1.3500%0.63750%
Bartholomew County1.2500%0.50000%
Benton County1.7900%0.54000%
Blackford County1.5000%0.50000%
Boone County1.0000%0.25000%
Brown County2.3955%0.50000%
Carroll County1.7039%0.40000%
Cass County2.5000%0.50000%
Clark County2.0000%0.75000%
Clay County2.2500%0.25000%
Clinton County2.0000%0.50000%
Crawford County1.0000%0.50000%
Daviess County1.7500%0.75000%
Dearborn County0.6000%0.15000%
Decatur County1.3300%0.58000%
DeKalb County2.0000%0.50000%
Delaware County1.5000%0.86250%
Dubois County1.0000%0.55000%
Elkhart County2.0000%0.50000%
Fayette County2.3700%0.87000%
Floyd County1.1500%0.65000%
Fountain County1.5500%0.50000%
Franklin County1.5000%0.50000%
Fulton County1.9300%0.68000%
Gibson County0.7000%0.55000%
Grant County2.2500%0.75000%
Greene County1.2500%0.50000%
Hamilton County1.0000%0.25000%
Hancock County1.7000%0.50000%
Harrison County1.0000%0.50000%
Hendricks County1.5000%0.50000%
Henry County1.5000%0.56250%
Howard County1.6500%0.56250%
Huntington County1.7500%0.50000%
Jackson County1.6000%0.75000%
Jasper County2.8640%0.50000%
Jay County2.4500%0.60000%
Jefferson County0.3500%0.35000%
Jennings County1.7500%0.50000%
Johnson County1.0000%0.25000%
Knox County1.0000%0.55000%
Kosciusko County1.0000%0.47500%
LaGrange County1.4000%0.65000%
Lake County1.5000%0.50000%
LaPorte County0.9500%0.70000%
Lawrence County1.7500%0.25000%
Madison County1.7500%0.43750%
Marion County1.7700%0.44250%
Marshall County1.2500%0.25000%
Martin County1.5000%0.52500%
Miami County2.5400%0.96500%
Monroe County1.0950%0.27375%
Montgomery County2.1000%0.60000%
Morgan County2.7200%0.50200%
Newton County1.0000%0.25000%
Noble County1.5000%0.75000%
Ohio

County

1.2500%0.25000%
Orange County1.2500%0.50000%
Owen County1.3000%0.55000%
Parke County2.4500%0.75000%
Perry County1.8100%1.24750%
Pike County0.7500%0.75000%
Porter County0.5000%0.50000%
Posey County1.0000%0.62500%
Pulaski County3.3800%0.68000%
Putnam County1.7500%0.75000%
Randolph County2.2500%0.75000%
Ripley County1.3800%0.63000%
Rush County2.1000%0.67000%
St. Joseph County1.7500%0.73750%
Scott County1.4100%0.47250%
Shelby County1.5000%0.50000%
Spencer County0.8000%0.57500%
Starke County1.7100%1.46000%
Steuben County1.7900%0.54000%
Sullivan County0.3000%0.30000%
Switzerland County1.0000%0.25000%
Tippecanoe County1.1000%0.65000%
Tipton County1.9800%0.50000%
Union County1.7500%0.50000%
Vanderburgh County1.0000%0.25000%
Vermillion County0.2000%0.20000%
Vigo County1.2500%0.75000%
Wabash County2.9000%0.50000%
Warren County2.1200%0.57000%
Warrick County0.5000%0.50000%
Washington County2.0000%0.50000%
Wayne County1.5000%0.50000%
Wells County2.1000%0.70000%
White County1.3200%0.57000%
Whitley County1.4829%0.48290%

How You Can Affect Your Indiana Paycheck

If you received a large tax refund or if you were hit with a massive tax bill when you filed your income taxes, you may want to consider changing your withholdings on your W-4. If you owed a lot in taxes, you may be claiming too many allowances. This is an easy fix as you can fill out a new W-4 with fewer allowances. Alternatively, you can have a dollar amount withheld from every paycheck. You can do this by specifying how much you want taken out of each paycheck on the correct line on your W-4.

If you think your paychecks are on the small side and you received a large refund at tax time, you can look into whether there are additional allowances that you can claim. Some people may like getting a big refund every April, but others may prefer to have access to that money throughout the year or to have the choice to invest and possibly grow that money for a year. If you are consistently over-paying your taxes, that’s like giving Uncle Sam a tax-free loan each year.

Pre-tax contributions are another factor that affect the size of your take-home pay. You can actually lower your taxable income by taking advantage of certain benefits that your employer may offer. For example, if you have the option of putting money into a 401(k) or 403(b) retirement account, or a Health Savings Account or Flexible Spending Account, that money will come out of your paycheck pre-tax and could help lessen how much you owe to Uncle Sam.

YearTop Income Tax Rate
20143.40%
20133.40%
20123.40%
20113.40%
20103.40%
20093.40%
20083.40%
20073.40%
20063.40%
20053.40%
20043.40%
20033.40%
20023.40%
20013.40%
20003.40%

SmartAsset's interactive map highlights the mot paycheck friendly counties across the country. Zoom between states and the national map to see data points for each region, or look specifically at one of the four factors driving our analysis: Semi-Monthly Paycheck, Purchasing Power, Unemployment Rate, and Income Growth.

Methodology Our study aims to find the most paycheck friendly places in the country. To find these places we considered four different factors: semi-monthly paycheck, purchasing power, unemployment rate, and income growth.

First, we calculated the semi-monthly paycheck for a single individual with two personal allowances, applying relevant deductions and exemptions before calculating income tax withholding. To better compare withholding across counties we used $50,000 annual income. We then indexed the paycheck amount for each county to reflect the counties with the lowest withholding burden.

We then created a purchasing power index for each county. This reflects the counties with the highest ratio of household income to cost of living. We also created an unemployment rate index that reflect the counties with the lowest unemployment. For income growth, we calculated the annual growth in median income over five years for each county and indexed the results.

Finally, we calculated the weighted average of the indices to yield an overall paycheck friendliness score. We used a one half weighting for semi-monthly paycheck and a one-sixth weighting for purchasing power, unemployment rate and income growth. We indexed the final number so higher values reflect the most paycheck friendly places.

Sources: SmartAsset, government websites, US Census Bureau 2014 & 2009 5-Year American Community Survey, MIT Living Wage Study, Bureau of Labor Statistics


Category: Paycheck

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