On a $65,000 salary, Indianapolis (Marion County)'s local tax adds an estimated $1,293 a year on top of Indiana state and federal tax, leaving $51,227 take-home.
| Rate (on state taxable income) | 2.02% |
|---|---|
| Estimated annual local tax | $1,293 |
2026 estimates for a single filer with no pre-tax contributions. Each salary links to the same figure for Indiana without the Indianapolis (Marion County) tax.
| Salary | Indianapolis (Marion County) tax | Indiana income tax | Federal income tax | Social Security + Medicare | Take-home |
|---|---|---|---|---|---|
| $50,000 | $990 | $1,446 | $3,820 | $3,825 | $39,920 |
| $75,000 | $1,495 | $2,183 | $7,670 | $5,738 | $57,915 |
| $100,000 | $2,000 | $2,921 | $13,170 | $7,650 | $74,260 |
| $125,000 | $2,505 | $3,658 | $18,734 | $9,563 | $90,541 |
| $150,000 | $3,010 | $4,396 | $24,734 | $11,475 | $106,386 |
| $200,000 | $4,020 | $5,871 | $36,734 | $14,339 | $139,037 |
Marion County (Indianapolis) levies a 2.02% local income tax (LIT) on Indiana state taxable income, on top of Indiana's flat state income tax rate -- collected together on the same state return, not as a separate city filing.
No -- and this is a real distinction from Pennsylvania and Michigan's commuter cities, not the same rule with a different number. Indiana repealed its split resident/non-resident LIT rates in 2015; every filer pays the full county rate for the county where they work or live, whichever applies under Indiana's county-selection rule below.
Indiana's Department of Revenue applies the rate for the county where you lived on January 1 of the tax year -- and only if you had no Indiana county residence on that date does your county of principal employment on January 1 apply instead.
Indiana’s tax treatment traces to Indiana DOR — Departmental Notice 1. Sources were reviewed through August 9, 2026.
Read the calculation methodology