How Lake County taxes your pay
Lake County covers Gary, Hammond, Merrillville and the rest of Indiana's corner of the Chicago area. Indiana local tax goes by the county you lived in on January 1, so a Hammond resident pays the Lake County rate whether the job is in Hammond or in the Loop.
Illinois has no reciprocal agreement with Indiana. A Lake County resident who works in Illinois has Illinois tax withheld, and Indiana then credits it against the Indiana tax on the same pay. The county tax is still owed.
Lake County tax rates for 2026
- Lake County tax: 1.5% of Indiana taxable income for people who live here; 1.5% for people who live outside Indiana and work here.
| Salary | Live and work here | Work here, live elsewhere in Indiana | Take-home, living here | Take-home with no local tax |
|---|---|---|---|---|
| $40,000 | $600 | $0 | $32,540 | $33,140 |
| $60,000 | $900 | $0 | $47,720 | $48,620 |
| $75,000 | $1,125 | $0 | $58,255 | $59,380 |
| $100,000 | $1,500 | $0 | $74,730 | $76,230 |
| $150,000 | $2,250 | $0 | $107,116 | $109,366 |
| $250,000 | $3,750 | $0 | $172,057 | $175,807 |
Someone who works in Lake County but lives elsewhere in Indiana pays nothing here: the tax goes by residence. They pay their own city or county's tax, if it has one.
Worked example: the Indiana median wage in Lake County
The median annual wage in Indiana is $47,860: half of all jobs pay more and half pay less, in the Bureau of Labor Statistics wage survey for May 2025 (all occupations; survey date May 31, 2025). Paid every two weeks as a single filer, with no 401(k) or benefits, that salary works out like this in Lake County, Indiana.
| Line | Each paycheck | Year |
|---|---|---|
| Gross pay | $1,840.77 | $47,860.00 |
| Federal income tax | $137.05 | $3,563.29 |
| Social Security | $114.13 | $2,967.38 |
| Medicare | $26.69 | $693.94 |
| Indiana income tax | $54.30 | $1,411.80 |
| Lake County tax | $27.61 | $717.86 |
| Take-home pay | $1,480.99 | $38,505.73 |
You keep 80.5% of gross pay. Of the $9,354 withheld, federal income tax is the largest part at $3,563, followed by Social Security at $2,967.
Without the local tax the same salary would leave $39,224 a year in Indiana, so living and working in Lake County costs $718 a year, or 1.5% of pay.
Live in Illinois, work in Lake County
On the same $47,860 salary, take-home pay in this case comes to $37,548 a year, $957 less than living and working in Lake County.
| Line | Year |
|---|---|
| Indiana income tax | $1,412 |
| Illinois income tax | $957 |
| Lake County tax | $718 |
| Take-home pay | $37,548 |
Enter both states in the calculator ("I live in a different state") to run this with your own pay.
Lake County paycheck questions
How much is Lake County local tax on $75,000 a year?
$1,125 for the year if you live and work in Lake County, single and paid every two weeks, and $0 if you work there but live elsewhere in Indiana. That leaves $58,255 after all taxes, against $59,380 with no local tax.
Do I pay Lake County tax if I live there but work somewhere else?
Yes. Lake County taxes residents on their pay wherever they work.
What is the Indiana median wage after tax in Lake County?
The median wage in Indiana is $47,860 (Bureau of Labor Statistics, May 2025). Living and working in Lake County, that leaves $38,506 a year after federal, Indiana, FICA and $718 of local tax.
What does a paycheck look like in Lake County?
At the Indiana median wage, paid every two weeks, each paycheck is $1,840.77 before tax and $1,480.99 after it. $27.61 of that goes to Lake County, next to $137.05 of federal income tax and $54.30 for Indiana.
How much Lake County tax is withheld on $250,000?
$3,750 for the year living and working there, which leaves $172,057 after every tax, against $175,807 with no local tax.
What if I live in Illinois and work in Lake County?
On $47,860, take-home pay comes to $37,548 a year, against $38,506 living and working in Lake County. Enter both states in the calculator to see each line.
Sources
Rules checked . How we calculate.