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Indianapolis (Marion County) Paycheck Calculator (2026)

Last reviewed: April 20, 2026

Indianapolis sits in Marion County and falls under Indiana's universal County Income Tax structure. Marion County levies a 2.02% County Income Tax (CIT) on resident wages, withheld at the source. Combined with Indiana's 3.05% flat state tax, an Indianapolis resident pays about 5.07% in state plus county income tax. Indiana counties each set their own CIT rate independently, and the rate applies under a uniform framework across all 92 counties. This calculator estimates 2026 take-home pay for an Indianapolis (Marion County) resident after federal tax, FICA, Indiana state tax, and the Marion County rate. It supports pre-tax 401(k) and HSA deductions.

$85,000 single filer take-home comparison

Indianapolis (Marion County)

$64,300

Indiana (no city tax)

$66,000

Texas (no income tax)

$68,600

Indianapolis (Marion County) take-home is -$1,700 vs the state-only figure and -$4,300 vs the no-income-tax baseline.

Indianapolis (Marion County) local tax breakdown

Local bracket schedule applied by the calculator for 2026.

Taxable IncomeRate
$0+2.02%

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Indianapolis (Marion County) paycheck FAQ

How does Indiana's County Income Tax structure work?
All 92 Indiana counties levy a County Income Tax under a state-administered framework. Each county sets its own rate (typically 0.5% to 2.5%), withheld at the source by employers based on the worker's county of residence. The CIT funds county and municipal services.
Why does Marion County have a higher CIT than most others?
Marion County's 2.02% rate is on the higher end of the Indiana CIT spectrum, reflecting the funding needs of the Indianapolis metro area. Adjacent suburban counties (Hamilton, Hancock, Hendricks) sit at lower rates, producing a noticeable gap for commuters who live outside Marion but work in Indianapolis.
If I live in Hamilton County but work in Indianapolis, what applies?
Indiana's CIT generally applies based on the worker's county of residence on January 1 of the tax year. A Hamilton County resident working in Indianapolis pays the Hamilton County rate (1.1%) on those wages, not Marion County's 2.02%, regardless of where the job is located.
How does Indianapolis compare to Cincinnati or Louisville?
Indianapolis's combined state plus local rate (~5.07%) is below Cincinnati's combined state plus city rate (~5.3%) and well below Louisville's combined state plus occupational (~6.28%). Indiana's county-level structure keeps total rates moderate compared to its neighbors.

Reviewed

How This Page Is Reviewed

The Indianapolis (Marion County) paycheck page is reviewed against primary federal, state, and city sources before each major tax-year update. Source links below are the references used to validate brackets, wage bases, and supported local taxes.

Reviewed by

PaycheckCalc Research Desk

Last reviewed

2026-04-20