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Indianapolis (Marion County) Paycheck Calculator (2026)

Enter your annual salary below to see your Indianapolis (Marion County) take-home pay after federal, state, FICA, and city/local taxes for 2026.

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Indiana's CIT residence-based framework is modeled at the home-county rate; cross-state CIT credit for residents working in non-IN states is handled qualitatively in prose, not at the engine level.

Quick answer

Yes. Indianapolis sits in Marion County, which levies a 2.02% County Income Tax (CIT) on resident wages under Indiana's universal county-tax framework. At $85,000 single, an Indianapolis (Marion County) resident takes home $64,403 after federal tax, FICA, Indiana's flat state line, and the Marion CIT.

Indianapolis sits in Marion County as Indiana's state capital and largest city, and the county levies a 2.02% County Income Tax on resident wages under Indiana's universal county-tax framework. Marion County and Indianapolis merged into a single Unigov government in 1970, one of the earliest US city-county consolidations; the structure is why 'Indianapolis' and 'Marion County' refer to functionally the same jurisdiction. The Indianapolis Motor Speedway hosts the Indianapolis 500 each Memorial Day weekend, the largest single-day sporting event in the world by attendance. Eli Lilly and Company has headquartered in Indianapolis since 1876, anchoring the city's bioscience industry. Lucas Oil Stadium hosts the Colts; Gainbridge Fieldhouse hosts the Pacers. The Children's Museum of Indianapolis is the largest children's museum in the world. Indiana runs no payroll-funded state disability insurance program. The federal income tax owed on $85,000 single is $9,870, with Indiana state tax at $2,508, FICA combined at $6,503, and the Marion County CIT line at $1,717, for take-home of $64,403. Use the calculator above to adjust salary, model 401(k) and HSA deferrals, or compare Marion County against another Indiana CIT county.

$85,000 single filer take-home comparison

Indianapolis (Marion County)

$64,400

Indiana (no city tax)

$66,100

Texas (no income tax)

$68,600

Indianapolis (Marion County) take-home is -$1,700 vs the state-only figure and -$4,200 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%

What this estimate includes

This calculator computes Indianapolis (Marion County) take-home pay using 2026 federal brackets after the standard deduction, FICA contributions (Social Security up to the annual wage base, Medicare on all wages, plus the Additional Medicare Tax above the filing-status threshold), Indiana's state income tax schedule, the Indianapolis (Marion County) local income tax. It excludes employer-side payroll taxes, custom W-4 elections, supplemental-wage handling for bonuses or equity vesting, and income from sources other than W-2 wages. Per-city resident and non-resident rules are described in the prose above where they differ.

Indianapolis (Marion County) paycheck FAQ

What is the federal tax bill on $85,000 single in Marion County?
The federal income tax owed on $85,000 single is $9,870, with the top slice in the 22% bracket after the standard deduction. Federal computation runs identically nationwide, so a Marion County single filer sees the same federal line as a Hamilton County or Allen County counterpart on the same gross.
How is Marion County's CIT structured?
Marion County's 2.02% CIT applies to all Indiana residents whose county of residence on January 1 is Marion County, withheld at the source by employers. The CIT applies regardless of where the worker is employed in Indiana. The Indianapolis Unigov structure means city and county functions are merged, but the CIT is a county-level tax under state law.
What if I live outside Marion County but work in Indianapolis?
An Indianapolis-area worker who lives outside Marion County (in Hamilton, Hendricks, or Johnson) but works in Indianapolis pays their home county's CIT rate, not Marion's 2.02%. The structural pull toward lower-rate suburban counties shows up clearly in the Indianapolis metro housing-market geography.
How much does a 401(k) contribution save at $85,000 in Marion County?
Pre-tax 401(k) and HSA contributions reduce federal and Indiana taxable income at a combined marginal rate of 24.95%. Because the Marion County CIT applies to the same Indiana taxable income base, deferrals also reduce the CIT line in parallel with the state and federal lines. All three liabilities respond to one deferral.
What changes for married filing jointly, head of household, or filing separately at $85,000 in Marion County?
MFJ at $85,000 clears about $68,433, a delta of $4,030 more the single figure. Wider federal MFJ brackets and the doubled federal standard deduction drive most of the change. Indiana's flat state rate is filing-status-neutral, and the Marion County 2.02% CIT applies per worker across all four filing statuses. Head of Household lifts take-home to about $67,325, around $2,922 more than Single, and combined MFS take-home lands about $4,030 less than MFJ.
How does Marion County compare to Hamilton County?
Hamilton County, the Indianapolis northern suburb, levies a CIT well below Marion's 2.02%. A Hamilton County resident commuting to an Indianapolis job pays Hamilton's lower rate (set by residence, not work location), which is part of why Carmel and Fishers attract Indianapolis-area workforce. Federal tax, FICA, and Indiana's flat state line are identical between the two counties.

See also

Run the full Indiana paycheck calculatorCompare to Fort Wayne (Allen County) paycheck calculatorCompare to Hamilton County, Indiana paycheck calculatorCompare to Lafayette (Tippecanoe County), Indiana paycheck calculatorCompare to Evansville (Vanderburgh County) paycheck calculatorCompare to Gary (Lake County), Indiana paycheck calculatorCompare to Anderson (Madison County), Indiana paycheck calculatorCompare to South Bend (St. Joseph County) paycheck calculatorBrowse all city paycheck calculatorsBrowse paycheck calculators by statePaycheck and tax glossaryHow we calculate paycheck taxes

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

2026-06-25