Indiana Tax Guide for Employers (2026) 

Indiana uses a flat state income tax rate and is notable for also having county-level income taxes. The county tax must be set up simultaneously with the state tax because the county calculation relies on exemption information from the state’s Form WH-4. 

Indiana imposes a flat state income tax of 2.95% for 2026. The state is unique in that county income taxes are mandatory and must be configured alongside the state tax. The county tax calculation uses parameters from the Indiana State Form WH-4, including personal exemptions, dependent exemptions, and adoption exemptions. 

Indiana supports the following supplemental calculation methods. When using the flat method, the supplemental rate is 2.95%. 

Your assigned SUTA rate will be based on your company’s experience with unemployment claims. New employers typically start at the default rate of 2.5%. 

Most Indiana counties impose a County Option Income Tax (COIT) or County Economic Development Income Tax (CEDIT). Rates vary by county. Employees complete Form WH-4 to specify their county.

Follow these steps to begin withholding Indiana payroll taxes for your employees: 

1. Obtain your Federal EIN at irs.gov
2. Register with the Indiana Department of Revenue at intime.dor.in.gov
3. Register for SUTA with the Indiana Department of Workforce Development at in.gov/dwd
4. Submit a Netchex tax team request to enable Indiana SIT, county taxes, and SUTA
5. Have each employee complete their tax forms with an automated onboarding task in Netchex, digitally storing tax forms
6. Configure any additional tax settings in the employee profile

Once setup is complete in Netchex, the system will automatically calculate, withhold, and remit all Indiana payroll taxes on your behalf. 

The following are general filing and deposit deadlines for Indiana payroll taxes. Deadlines may vary based on your employer size and deposit frequency. Always verify current schedules at Indiana Department of Revenue. 

Note: Deadlines are subject to change. Always confirm current requirements directly with Indiana Department of Revenue at https://www.in.gov/dor/business-tax/withholding-income-tax/. 

The following official resources will help you stay current on Indiana payroll tax requirements: 

• Indiana Department of Revenue
• Indiana DOR Withholding
• Indiana County Tax Rates

Does Indiana have county income taxes? 

Yes. Most Indiana counties impose a County Option Income Tax (COIT) or County Economic Development Income Tax (CEDIT). Rates vary by county. 

What form do Indiana employees complete? 

Employees complete Indiana Form WH-4, the Employee’s Withholding Exemption and County Status Certificate. 

What is Indiana’s flat income tax rate? 

Indiana’s flat income tax rate is 3.05% as of 2024. 

What is Indiana’s SUTA wage base? 

Indiana’s SUTA wage base is $9,500 per employee per year. Verify at in.gov/dwd. 

What is Indiana’s supplemental withholding rate? 

Indiana uses the employee’s flat rate (3.05% state + applicable county rate) for supplemental wages.