Indiana Payroll Calculator
Calculate employer payroll taxes, employee withholdings, and net pay in Indiana. Stay compliant with Indiana labor laws and tax regulations.
Why calculating business in Indiana is different
Indiana has a flat income tax system and relatively high sales tax.
State Income Tax
3.15%
Base Sales Tax
7%
State Min Wage
$7.25 / hr
Abbreviation
IN
Indiana Business Interactive Tool
This calculator uses the latest 2026 data for Indiana, including the minimum wage of $7.25 and the specific state income tax rates (3.15%).
Frequently Asked Questions about Indiana Business
How do I calculate payroll taxes in Indiana?
To calculate payroll taxes in Indiana, you must account for federal FICA taxes (Social Security and Medicare), federal unemployment (FUTA), Indiana state unemployment (SUTA), and Indiana state income tax withholding (3.15%).
What is the minimum wage for payroll in Indiana?
The current minimum wage in Indiana is $7.25 per hour. Employers must ensure all non-exempt employees earn at least this amount.