Indiana · 2026 take-home pay

$16 an hour after taxes in Indiana

At $16 an hour in Indiana you keep about $13.45 of every hour — $538 a week, $2,331 a month or $27,968 a year full time — after 2026 federal income tax, Social Security, Medicare and Indiana income tax. Indiana has a flat 2.95% income tax, and its minimum wage is $7.25 an hour.

By Work & Money Editorial Team · Last reviewed October 14, 2026

Where $16 an hour goes

$16 an hour full time in Indiana, single filer, 2026
A yearA weekAn hour
Gross pay$33,280$640$16.00
Federal income tax−$1,814−$35−$0.87
Social Security (6.2%)−$2,063−$40−$0.99
Medicare (1.45%+)−$483−$9−$0.23
Indiana income tax−$952−$18−$0.46
Take-home pay$27,968$538$13.45

Effective tax rate 16% · federal bracket 12% · Indiana bracket 2.95%.

Take-home per paycheck

40 hours a week, different pay schedules
PaidGrossTake-home
Weekly (52 paychecks)$640.00$537.85
Every two weeks (26)$1,280.00$1,075.70
Twice a month (24)$1,386.67$1,165.34
Monthly (12)$2,773.33$2,330.69

Change hours, overtime and deductions

$16 an hour at different hours

Take-home in Indiana for part-time, full-time and overtime weeks. Overtime is paid at 1.5 times $16 an hour for hours over 40, as federal law requires for most hourly workers.

$16 an hour in Indiana: weekly hours and take-home, 2026
ScheduleGross a weekTake-home a weekTake-home a year
20 hours a week*$320$286$14,852
30 hours a week$480$413$21,458
40 hours a week$640$538$27,968
40 hours + 5 overtime$760$631$32,798
40 hours + 10 overtime$880$724$37,628

*If this is your only job. With a second job, withholding on each is likely too low unless you adjust your W-4.

Is $16 an hour good pay in Indiana?

  • Minimum wage: $16 an hour is 2.2 times Indiana's minimum wage of $7.25 an hour.
  • Among Indiana workers: It's about the 18th percentile of hourly pay in Indiana (BLS, May 2025) — roughly 18 in 100 workers earn less. The median is $23.01 an hour.
  • Local prices: Indiana's price level is 93.3% of the U.S. average (BEA Regional Price Parities), so $27,968 a year buys about what $29,967 would at national-average prices.
  • Rent: the 30% rule points to about $832 a month. Check it with your debts.
  • A 50/30/20 budget: about $1,165 a month for needs, $699 for wants and $466 for savings. Plan it in the budget calculator.

Jobs in Indiana that pay about $16 an hour

Occupations whose median wage in Indiana is within 4% of $16 an hour, most common first. Source: BLS OEWS May 2025.

Barbers

Median $16.15 an hour in Indiana · 370 jobs

How Indiana compares on $16 an hour

Indiana ranks 36th of 51 for take-home pay on $16 an hour (1st = keeps the most). Here it is next to its neighbors.

Take-home on $16 an hour, 40 hours a week, single filer, 2026
StateAfter tax, per hourA yearMinimum wagevs Indiana
Indiana$13.45$27,968$7.25—
Illinois$13.18$27,418$15.00−$550 a year
Kentucky$13.40$27,873$7.25−$95 a year
Michigan$13.34$27,757$13.73−$211 a year
Ohio$13.68$28,456$11.00+$488 a year

How the federal tax on $33,280 ($16 an hour) is worked out

Taxable income is $33,280 minus the 2026 standard deduction ($16,100) = $17,180. Each slice is taxed at its own rate:

2026 federal income tax by bracket, single filer
RateIncome in this bracketTax
10%$12,400$1,240
12%$4,780$574
Total$17,180$1,814

How the Indiana income tax on $33,280 ($16 an hour) is worked out

Taxable income is $33,280 of Indiana wages minus $1,000 in exemptions = $32,280.

Indiana income tax by bracket, single filer, 2026 rules
RateIncome in this bracketTax
2.95%$32,280$952
Total$32,280$952

Common questions

How much is $16 an hour after taxes in Indiana?

About $13.45 for every hour you work, or $27,968 a year at 40 hours a week ($33,280 gross). Taxes take about 16% of your pay, for a single filer in 2026 with no pre-tax deductions.

How much is $16 an hour a week after taxes in Indiana?

About $538 a week at 40 hours, from $640 gross. Paid every two weeks, each paycheck is about $1,076.

How much is $16 an hour a month after taxes in Indiana?

About $2,331 a month at 40 hours a week, from $2,773 gross.

Is $16 an hour good pay in Indiana?

$16 an hour is 2.2 times Indiana's minimum wage of $7.25 an hour. It's about the 18th percentile of hourly pay in Indiana (BLS, May 2025) — roughly 18 in 100 workers earn less. The median hourly wage for all jobs in Indiana is $23.01. After taxes and local prices, $27,968 a year buys about what $29,967 would at national-average prices.

Is Indiana a high-tax state for $16 an hour?

It ranks 36th of 51 among the 50 states and D.C. for take-home on $16 an hour. The most you'd keep is $28,920 a year, in 8 places including Florida, North Dakota, New Hampshire; the least, $26,771 in Oregon.

Sources and method

Our 2026 engine applies IRS Publication 15-T withholding, Social Security and Medicare, Indiana's income tax rules (methodology). Local income taxes are not included. Minimum wages: U.S. Department of Labor. Wage distribution and jobs: BLS OEWS May 2025. Price levels: BEA Regional Price Parities.

  1. Publication 15-T (2026), Federal Income Tax Withholding Methods — Internal Revenue Service. Accessed October 14, 2026.
  2. State Minimum Wage Laws — U.S. Department of Labor, Wage and Hour Division. Accessed October 14, 2026.
  3. Occupational Employment and Wage Statistics, May 2025 — U.S. Bureau of Labor Statistics. Accessed October 14, 2026.
  4. Regional Price Parities by State — U.S. Bureau of Economic Analysis. Accessed October 14, 2026.