How Marion County (Indianapolis) taxes your pay
Indianapolis and Marion County share one government, so the county rate is the Indianapolis rate. Indiana sets local income tax by county, and the county that counts is the one you lived in on January 1. Move to Hamilton County in March and Marion County still applies for the rest of that year.
If you live outside Indiana and work in Indianapolis, Marion County tax is still withheld, because Indiana uses the county where you work on January 1 for people who live out of state.
Marion County (Indianapolis) tax rates for 2026
- Marion County tax: 2.02% of Indiana taxable income for people who live here; 2.02% 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 | $808 | $0 | $32,332 | $33,140 |
| $60,000 | $1,212 | $0 | $47,408 | $48,620 |
| $75,000 | $1,515 | $0 | $57,865 | $59,380 |
| $100,000 | $2,020 | $0 | $74,210 | $76,230 |
| $150,000 | $3,030 | $0 | $106,336 | $109,366 |
| $250,000 | $5,050 | $0 | $170,757 | $175,807 |
Someone who works in Marion County (Indianapolis) 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 Marion County (Indianapolis)
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 Marion County (Indianapolis), 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 |
| Marion County tax | $37.18 | $966.68 |
| Take-home pay | $1,471.42 | $38,256.91 |
You keep 79.9% of gross pay. Of the $9,603 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 Marion County (Indianapolis) costs $967 a year, or 2.0% of pay.
Live in Hamilton County, work in Indianapolis
On the same $47,860 salary, take-home pay in this case comes to $38,697 a year, $440 more than living and working in Marion County (Indianapolis).
| Line | Year |
|---|---|
| Indiana income tax | $1,412 |
| Hamilton County tax | $527 |
| Take-home pay | $38,697 |
Enter both states in the calculator ("I live in a different state") to run this with your own pay.
Marion County (Indianapolis) paycheck questions
How much is Marion County (Indianapolis) local tax on $75,000 a year?
$1,515 for the year if you live and work in Marion County (Indianapolis), single and paid every two weeks, and $0 if you work there but live elsewhere in Indiana. That leaves $57,865 after all taxes, against $59,380 with no local tax.
Do I pay Marion County (Indianapolis) tax if I live there but work somewhere else?
Yes. Marion County (Indianapolis) taxes residents on their pay wherever they work.
What is the Indiana median wage after tax in Marion County (Indianapolis)?
The median wage in Indiana is $47,860 (Bureau of Labor Statistics, May 2025). Living and working in Marion County (Indianapolis), that leaves $38,257 a year after federal, Indiana, FICA and $967 of local tax.
What does a paycheck look like in Marion County (Indianapolis)?
At the Indiana median wage, paid every two weeks, each paycheck is $1,840.77 before tax and $1,471.42 after it. $37.18 of that goes to Marion County (Indianapolis), next to $137.05 of federal income tax and $54.30 for Indiana.
How much Marion County (Indianapolis) tax is withheld on $250,000?
$5,050 for the year living and working there, which leaves $170,757 after every tax, against $175,807 with no local tax.
What if I live in Hamilton County and work in Indianapolis?
On $47,860, take-home pay comes to $38,697 a year, against $38,257 living and working in Marion County (Indianapolis). Enter both states in the calculator to see each line.
Sources
Rules checked . How we calculate.