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Taxes
Indiana Payroll Taxes 2026: Complete Overview for Employers
Indiana flat 3.05% (+ county taxes) income tax, SUI on the first $9,500, and all employer tax obligations explained.
Practical guides on IN payroll taxes, employer registration, SUI, minimum wage, and labor laws — written for small business owners, not accountants.
Written by payroll professionals at Pacific Data Services — trusted since 1969.
Indiana has a low flat state rate of 3.05%, but employers must also withhold county income taxes that vary by the employee’s county of residence.
With 92 counties each setting their own income tax rate, Indiana payroll requires careful tracking of employee residency for accurate withholding.
At $9,500, Indiana’s SUI wage base is relatively low, keeping employer unemployment insurance costs modest.
Indiana flat 3.05% (+ county taxes) income tax, SUI on the first $9,500, and all employer tax obligations explained.
Get your EIN, register with Indiana, set up withholding, new hire reporting — the complete checklist.
New employer rate 2.5%, experienced range 0.50%–7.40%, wage base $9,500.
Indiana minimum wage $7.25/hr. Indiana’s minimum wage is $7.25/hr, matching the federal minimum. Tipped employees may be paid $2.13/hr.
IRS classification rules, Indiana-specific considerations, misclassification penalties.
Gusto vs Paychex vs QuickBooks vs ADP — detailed comparison for Indiana small businesses.