Indiana Minimum Wage and Income Tax 2026
What it costs to pay people and earn money in Indiana.
Minimum wage$7.25per hour
Income tax2.95% flat
State sales tax7.00%about 7.00% with local tax
Corporate tax4.90%
Minimum wage in Indiana
The minimum wage is $7.25 an hour, the same as the federal rate.
Full time at 40 hours, that is $290 a week or $15,080 a year. It ranks 32 of 51, higher than 0 others.
As of July 1, 2026. Source: U.S. Department of Labor.
Income tax in Indiana
Indiana has a flat income tax of 2.95%.
The top rate ranks 39 of 51.
Single filers, as of January 1, 2026. Source: Tax Foundation.
Corporate tax in Indiana
The top corporate income tax rate is 4.90%.
It ranks 36 of 51.
As of April 2, 2026. Source: Tax Foundation.
Sales tax in Indiana
The state rate is 7.00%. With the average local tax, shoppers pay about 7.00%.
As of July 1, 2026. Source: Tax Foundation.