1. What is the Salary Calculator?

This calculator estimates net pay in the Indianapolis area by calculating deductions for federal tax, Indiana state tax, and FICA (Social Security and Medicare) from gross pay.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Federal Tax — Progressive tax brackets based on filing status
• Indiana State Tax — Flat 3.15% of gross income
• FICA — 7.65% of gross income (6.2% Social Security + 1.45% Medicare)

3. Tax Rates Used

Federal Tax: 2023 tax brackets (10% up to $11,600 for single filers, etc.)
Indiana State Tax: Flat 3.15% rate
FICA: 7.65% (6.2% for Social Security up to wage base, 1.45% for Medicare)

4. Using the Calculator

Tips: Enter your annual gross salary in USD and select your filing status. The calculator will estimate your take-home pay after taxes and FICA deductions.

5. Frequently Asked Questions (FAQ)

Q1: Are local taxes included?
A: No, this calculator doesn't include local/county taxes which may apply in some Indiana areas.

Q2: What about deductions and credits?
A: This is a simplified calculator that doesn't account for itemized deductions, tax credits, or other adjustments.

Q3: Is the FICA calculation accurate for high earners?
A: For incomes above $200,000 (single) or $250,000 (married), additional Medicare tax may apply.

Q4: How often are tax brackets updated?
A: Tax brackets are adjusted annually for inflation. This calculator uses 2023 rates.

Q5: Can I use this for paycheck calculations?
A: This calculates annual amounts. For paycheck estimates, divide net pay by number of pay periods.