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How Indianapolis, Indiana Income Tax & Salary Deductions Work
Indianapolis, the capital of Indiana and the racing capital of the world, is a major logistics, pharmaceutical, and sports hub. With one of the lowest combined tax burdens and costs of living among major US cities, Indianapolis offers exceptional take-home pay for professionals.
Did you know? Indianapolis hosts the Indianapolis 500, the largest single-day sporting event in the world, attracting over 300,000 spectators. The city is also the amateur sports capital of the US, hosting more than 400 sporting events annually.
The median household income in Indianapolis is approximately $52,000, with major employment in pharmaceuticals (Eli Lilly), motorsports, logistics, healthcare, insurance, and technology.
Understanding Your Indianapolis, Indiana Paycheck Deductions
When you receive your paycheck in Indianapolis, Indiana, several deductions are automatically taken out. These include federal income tax, state income tax, local taxes, Social Security, and Medicare. Our calculator breaks down each of these components so you can see exactly where your money goes.
Indianapolis, Indiana Federal & State Tax Rates 2026
The tax rates in Indianapolis, Indiana are determined by multiple factors including your income level, filing status, and location. Federal taxes apply to all US residents, while state and local taxes vary significantly by location. Use our calculator above to see your personalized tax breakdown.
Where Your Money Goes in Indianapolis, Indiana
75.6%
11.7%
6.2%
1.5%
3.0%
2.0%
Net Pay
$56,700
Federal Tax
$8,761
Social Security
$4,650
Medicare
$1,088
State Tax
$2,288
Local Tax
$1,515
| Tax Type | Rate | Amount |
|---|---|---|
| Federal Tax | 11.68% | $8,761 |
| Social Security | 6.20% | $4,650 |
| Medicare | 1.45% | $1,088 |
| State Tax | 3.05% | $2,288 |
| Local Tax | 2.02% | $1,515 |
| Total Tax | 24.40% | $18,301 |
Frequently Asked Questions
On a salary of $75,000 in Indianapolis, Indiana, you would pay approximately $18,301 in total taxes, which represents an effective tax rate of 24.40%. This includes all applicable federal, state, and local taxes, as well as social insurance contributions.
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