Indiana Decreases Income Tax Rate for 2026

Indiana’s income tax rate will decrease Jan. 1, 2026, while six counties will increase their tax rates Jan. 1, the state revenue department said Dec. 9.

The state income tax rate will be 2.95% in 2026, down from 3%, the department said in Departmental Notice No. 1. The deduction constant tables for state withholding were unchanged.

The county tax rates that changed were as follows, the department said.

• Carroll County, an increase to 2.4733% from 2.2733%.
• Grant County, an increase to 2.75% from 2.55%.
• Greene County, an increase to 2.35% from 2.15%.
• Howard County, an increase to 2.35% from ...