Indianapolis, IN variant. This is a Indianapolis, IN-specific version of the Income Tax Calculator, 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 Income Tax Calculator.
Income tax in Indianapolis combines federal, IN state, and a 2.02% city income tax.
Layers of income tax in Indianapolis
Indianapolis is among the cities that add a local income tax - 2.02% here - on top of IN state and federal tax. That makes Indianapolis one of the higher total-tax jurisdictions in the country.
Combine all layers to find your true marginal rate on the next dollar earned.
About Indianapolis, IN
Indianapolis residents pay a local county income tax in addition to Indiana state income tax.
Indianapolis is one of the more affordable large-city housing markets in the country, with modest home prices and rents.
Indianapolis's economy is supported by healthcare, logistics, advanced manufacturing, and a strong sports and convention sector.
Worked example: local tax on $58,572
Indianapolis's 2.02% city tax on $58,572 ≈ $1,183, before IN state and federal tax.
Quick reference
- Median home value: $220,000
- Median rent: $1,300/mo
- Median household income: $58,572
- Local sales tax: 7%
- City income tax: 2.02%
- Effective property tax rate: 1.07%
- Cost of living index: 88 (US avg = 100)
Frequently Asked Questions
Does Indianapolis have a local income tax?
Yes - 2.02%, on top of IN state and federal tax.
What taxes apply to Indianapolis residents?
Federal, IN state, and a 2.02% city income tax.