Living on minimum wage · Indiana
Living on Minimum Wage in Indiana
A full-time job at Indiana’s $7.25 minimum wage pays $15,080 a year. After federal taxes that is about $1,161 a month, tied with 19 other states for the lowest take-home of the 51 states and DC.
- Take-home a month $1,161 single, after federal tax
- Take-home a year $13,926 92% of $15,080
- Real hourly pay $6.70 after tax, of $7.25
- Work for $100 of goods 16.0 hrs incl. 7% sales tax
From gross pay to take-home
| Year | Month | Every 2 weeks | |
|---|---|---|---|
| Gross pay | $15,080 | $1,257 | $580 |
| Federal income tax | $0 | $0 | $0 |
| Social Security & Medicare | −$1,154 | −$96 | −$44 |
| Take-home | $13,926 | $1,161 | $536 |
Figures assume 40 hours a week for 52 weeks, a single filer and the 2026 standard deduction. Indiana state income tax is not included, so an actual paycheck here will be somewhat lower. For a different situation, use the take-home pay calculator.
Compared with the federal minimum
Indiana pays the federal minimum of $7.25, so a full-time worker here takes home the same $13,926 a year as anywhere at the federal floor. The highest take-home is in District of Columbia, at $32,842. See this state’s rate history and rank on minimum wage in Indiana.
What spending costs in hours of work
The combined sales tax in Indianapolis is 7%, so $100 of taxable goods costs $107.00 at the register. At $6.70 of take-home pay an hour, that takes about 16.0 hours of work, the 36th-shortest of the 51 states and DC.
Rates differ across the state; see sales tax in Indiana for other cities.
Two earners
A couple who both work full-time at minimum wage and file jointly earn $30,160 and take home about $2,321 a month after federal taxes.
How big a mortgage minimum wage supports
Lenders commonly cap housing costs at 28% of gross pay. At this week’s 6.76% 30-year rate, that lets one full-time earner here borrow about $54,195 and a two-earner couple about $108,390, before property tax and insurance. See what a $100,000 mortgage costs month to month.
Minimum wage in Indiana: take-home FAQ
What is take-home pay on minimum wage in Indiana?
Full-time at $7.25 an hour, 40 hours a week for 52 weeks, earns $15,080 a year. After $0 of federal income tax and $1,154 of Social Security and Medicare, a single filer takes home about $13,926, or $1,161 a month. Indiana state income tax is not included, so an actual paycheck here will be somewhat lower.
How much federal tax does a minimum wage worker pay in Indiana?
On $15,080 a year, a single filer owes no federal income tax because the 2026 standard deduction covers it. Social Security and Medicare still take 7.65%, or $1,154.
How long does a minimum wage worker in Indiana work to buy $100 of goods?
The combined sales tax in Indianapolis is 7%, so $100 of taxable goods costs $107.00 at the register. At a take-home rate of $6.70 an hour, that is about 16.0 hours of work, the 36th-shortest of the 51 states and DC.
Can you afford a mortgage on minimum wage in Indiana?
Keeping principal and interest to 28% of gross pay at this week’s 6.76% 30-year rate, one full-time minimum wage earner could borrow about $54,195. Two full-time earners could borrow about $108,390, before property tax and insurance.
2026 state minimum wage, 2026 federal brackets for a single filer with the standard deduction, and Social Security and Medicare at 7.65%. State and local income taxes are not included . Sales tax is the combined rate for one downtown ZIP code in Indianapolis.
Data: U.S. Department of Labor; Internal Revenue Service; State departments of revenue, via APIVerve. Our tables, charts and text are licensed CC BY-NC 4.0: share and adapt them for non-commercial use as long as you credit us. For commercial use or bulk data, use the APIVerve API. See the data terms. Cite as: Digest Your Finances, “Living on Minimum Wage by State”, https://digestyourfinances.com/studies/living-on-minimum-wage/indiana/ — based on U.S. Department of Labor; Internal Revenue Service; State departments of revenue. CC BY-NC 4.0.
