1. What is Indiana Salary Tax?

For Pakistani residents working in Indiana, salary taxes include three main components: Federal Income Tax (progressive brackets), Indiana State Tax (flat rate), and FICA taxes (Social Security and Medicare).

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Federal Tax — Calculated using 2025-2026 IRS tax brackets
• Indiana State Tax — Flat 3.15% of income
• FICA — Social Security (6.2% up to wage base) + Medicare (1.45% + 0.9% for high earners)

3. Tax Components Explained

Federal Tax: Progressive tax with rates from 10% to 37% based on income and filing status.

Indiana Tax: Flat rate of 3.15% for all income levels in 2025-2026.

FICA: Mandatory payroll taxes that fund Social Security and Medicare programs.

4. Using the Calculator

Instructions: Enter your annual income in USD and select your filing status. The calculator will estimate your total tax burden and net income.

5. Frequently Asked Questions (FAQ)

Q1: Do Pakistani citizens pay different taxes in Indiana?
A: No, the same tax rates apply to all residents regardless of citizenship. However, tax treaties may affect certain situations.

Q2: Are there tax credits available?
A: Yes, you may qualify for various credits like the Earned Income Tax Credit (EITC) or Child Tax Credit.

Q3: How is state tax different from federal tax?
A: Federal tax has progressive brackets while Indiana uses a flat rate. Federal taxes fund national programs, state taxes fund local services.

Q4: Can I get a refund on FICA taxes?
A: Generally no, unless you're exempt under specific visa categories or tax treaties.

Q5: When are taxes due in Indiana?
A: The deadline is typically April 15 for both federal and state taxes, with possible extensions available.