Indiana Nanny Tax Guide
Indiana has a low flat state income tax of 3.05%, but all counties also impose their own income taxes ranging from about 0.5% to 3%. You must withhold both state and county taxes.
Minimum Wage
$7.25/hour (federal)
SUTA Rate Range
0.5% - 7.4%
Key Things to Know
- Flat state income tax of 3.05%
- County income taxes apply (varies by county)
- Uses federal minimum wage
- No disability or paid leave requirements
Indiana Employer Requirements
State Income Tax
Indiana uses a flat 3.05% state income tax rate. A personal exemption of $1,000 per dependent reduces taxable income.
County Income Tax
All Indiana counties have their own income tax, typically ranging from 0.5% to 3%. You must withhold county tax based on where your employee lives.
State Unemployment Insurance
Employers pay SUI tax on the first $9,500 of wages. New employer rate is 2.5%, with rates ranging from 0.5% to 7.4% based on experience.
What will it cost?
Wondering what you'll actually owe as a Indiana employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.
This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.
Learn More
Nanny Tax Calculator
See exactly what you'll owe in taxes for your situation.
2026 Tax Deadline Calendar
All quarterly deadlines for Indiana and federal taxes.
Complete Guide to Nanny Taxes
Everything you need to know about household employment taxes.
Nanny Cost by State
Compare Indiana employer costs to all 50 states.
NannyKeeper handles Indiana taxes automatically
We calculate and track all state-specific requirements so you don't have to.
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