Indiana variant. This is a Indiana-specific version of the Payroll Tax Estimator (Flat Rate), using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Payroll Tax Estimator (Flat Rate).
Indiana employers owe federal payroll taxes (Social Security, Medicare, FUTA) plus state obligations (state income tax withholding and SUTA).
Payroll tax obligations in Indiana
Employers match the 6.2% Social Security and 1.45% Medicare withheld from employees, and pay FUTA (0.6% on the first $7,000 after credits) plus state unemployment insurance.
Indiana also requires state income tax withholding (Flat 3.05% (decreasing toward 2.9%)).
About taxes and housing in Indiana
Indiana has a low flat state income tax, and counties may add their own local income taxes on top.
Indiana caps property taxes through a constitutional limit tied to a percentage of a home's value, keeping bills predictable.
Indiana has one of the most manufacturing-intensive economies in the country, with steel, autos, and pharmaceuticals as major sectors.
Worked example: employer cost on $67,173
On a $67,173 salary, the employer's FICA match alone is 7.65% = $5,139, before FUTA and Indiana unemployment insurance.
Quick reference
- State income tax: Flat 3.05% (decreasing toward 2.9%)
- State sales tax: 7% (plus 0.00% avg local)
- Median home value: $240,000
- Median household income: $67,173
- Effective property tax rate: 0.84%
- Avg auto insurance: $1,304/yr
Frequently Asked Questions
What payroll taxes do Indiana employers pay?
Employer FICA match (7.65%), FUTA, state unemployment, and state income tax withholding.
What is the employer FICA match?
Employers match 6.2% Social Security + 1.45% Medicare = 7.65% of wages.