Indiana minimum wage: $7.25/hr (2026)
📊 Indiana Income Tax Overview 2026
Indiana uses a Flat: 3.05% income tax system. See the wage table below for common take-home pay amounts.
| Taxable Income (Single) | CA Tax Rate | Tax on Bracket |
|---|---|---|
| $0 – $10,412 | 1.0% | up to $104 |
| $10,413 – $24,684 | 2.0% | up to $285 |
| $24,685 – $38,959 | 4.0% | up to $571 |
| $38,960 – $54,081 | 6.0% | up to $907 |
| $54,082 – $68,350 | 8.0% | up to $1,141 |
| $68,351 – $349,137 | 9.3% | up to $26,139 |
| $349,138 – $418,961 | 10.3% | up to $7,192 |
| $418,962 – $698,274 | 11.3% | up to $31,560 |
| $698,275+ | 13.3% | highest bracket |
Source: Indiana Dept of Revenue · 2026. IN flat: 3.05%. Plus county income tax.
💵 Common Hourly Wages — Indiana After-Tax
Here's what various hourly wages look like after Indiana taxes (single filer, 2026):
| Hourly Rate | Annual Gross | CA State Tax | Take-Home/yr | Take-Home/mo |
|---|---|---|---|---|
| $17/hr | $35,360 | ~$618 | ~$29,300 | ~$2,442 |
| $20/hr | $41,600 | ~$935 | ~$33,900 | ~$2,825 |
| $22/hr | $45,760 | ~$1,155 | ~$36,800 | ~$3,067 |
| $25/hr | $52,000 | ~$1,614 | ~$41,400 | ~$3,450 |
| $30/hr | $62,400 | ~$2,450 | ~$49,200 | ~$4,100 |
| $35/hr | $72,800 | ~$3,350 | ~$56,600 | ~$4,717 |
| $40/hr | $83,200 | ~$4,260 | ~$63,900 | ~$5,325 |
| $50/hr | $104,000 | ~$6,450 | ~$78,300 | ~$6,525 |
🏙️ Indiana Major Cities — Wages & Cost of Living 2026
Here's a cost of living overview for major Indiana cities:
📖 California Tax Guide for Workers 2026
California State Income Tax
California uses a progressive income tax system with 9 brackets (1%–13.3%). Unlike federal taxes, California has a relatively low standard deduction of $5,202 for single filers in 2026, meaning more of your income is subject to state tax compared to federal tax.
State Disability Insurance (SDI)
California workers pay SDI at 0.9% of gross wages with no wage ceiling since January 2024. SDI provides short-term disability benefits and Paid Family Leave (PFL) — you may be eligible to receive up to 60–70% of your wages if you need to take time off for a qualifying disability or family reason.
California vs. No-Tax States
Compared to Texas or Florida (0% state tax), a California worker earning $52,000/year pays approximately $2,100–$2,500 more in state taxes annually. However, California offers benefits including disability insurance, paid family leave, strong worker protections, and higher minimum wages.
California Overtime Law
California has stricter overtime rules than federal law: overtime (1.5× rate) applies after 8 hours in a single day (not just 40 hours/week). Double time (2× rate) applies after 12 hours in a day or after 8 hours on the 7th consecutive day worked. This can significantly increase take-home for hourly workers who work long days.
California COLA & Living Wage
California has the highest cost of living of any U.S. state. The MIT Living Wage Calculator estimates a single adult in Los Angeles needs ~$30–35/hr to meet basic needs without government assistance. In San Francisco, the equivalent is closer to $38–42/hr. A $17/hr minimum wage, while the highest state minimum in the U.S., still falls short of a true living wage in California's major cities.
❓ Frequently Asked Questions
Indiana's minimum wage is the federal minimum of $7.25/hour. Indiana has not raised its state minimum above the federal rate. Indianapolis does not have a separate city minimum wage. Indiana's low cost of living helps offset the low minimum wage.
Indiana has a flat income tax rate of 3.05% — one of the lowest in the U.S. Additionally, all 92 Indiana counties charge a county income tax ranging from 0.5% to 3.38%. Most central Indiana counties (Marion, Hamilton, Hendricks) charge 1%–2%.
$25/hr (~$3,450/month after IN state taxes) is excellent pay in most Indiana cities. Indianapolis 1-bedrooms average $1,000–$1,500. Fort Wayne, South Bend, and Evansville are even more affordable at $700–$1,100. Indiana is very affordable. Most financial advisors recommend budgeting 30% of take-home for housing (~$988/month) — which is very difficult in coastal CA metros at $25/hr.
Yes — all 92 Indiana counties have a county income tax (COIT) ranging from 0.5% to 3.38%. The county rate is applied to your Indiana adjusted gross income on top of the state 3.05%. Marion County (Indianapolis) charges 2.02%, Hamilton County 1.1%.
No — Indiana has no mandatory state disability insurance or paid family leave. Workers should look into employer-provided short-term disability insurance. Indiana has limited workers' compensation for workplace injuries but no general disability program. These rules apply to most non-exempt employees regardless of industry.