Indiana Pay Stub Requirements & Payroll Taxes

Indiana requires a statement of hours, wages and deductions every pay period and lets employees ask to be paid every two weeks. Its state income tax is a flat 2.95% for 2026, falling to 2.90% in 2027, but most Indiana stubs carry a second income tax line: the county tax, which varies from county to county. The minimum wage stays at the federal $7.25.

It's a general guide, not legal or tax advice. For your specific situation, check the source links below or talk to a licensed payroll, tax, or employment-law professional.

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Is a pay stub required in Indiana?

Indiana employers must furnish each employee, for each pay period, a statement showing the hours worked, the wages paid, and a listing of deductions made. Employers must also keep wage records available for Department of Labor inspection.

Required on every wage statement — Ind. Code § 22-2-2-8:

Hours worked by the employee
Wages paid to the employee
Listing of deductions made

Penalty for non-compliance: No specific statutory penalty is set out in this section for failing to furnish the statement itself.

How often must employees be paid?

Employers must pay each employee at least semimonthly, or biweekly if the employee requests it, and wages must be paid for work performed within ten business days before the payday. An employee who voluntarily quits may be paid on the next regular payday rather than immediately.

Source: Ind. Code § 22-2-5-1

Indiana minimum wage

Indiana's minimum wage law requires employers with at least two employees to pay the federal minimum wage, so the Indiana rate is $7.25 an hour and moves only when federal law does.

$7.25 per hour statewide, effective July 24, 2009Indiana's rate is tied to the federal minimum wage under the Fair Labor Standards Act.

Tipped employees: a cash wage of at least $2.13 per hour, with the employer responsible for showing, through reported tips, that tips make up the rest of the minimum wage.

Source: Ind. Code § 22-2-2-4

Overtime & double time

Indiana's minimum wage law requires time and a half for hours over 40 in a workweek, matching federal law. There is no daily overtime.

Trigger	Pay rate
Daily overtime	No state daily overtime rule.
Weekly overtime	1.5× the regular rate for hours beyond 40 in a workweek.
7th consecutive workday	No seventh-consecutive-day rule.

Source: Ind. Code § 22-2-2-4(f); Fair Labor Standards Act, 29 U.S.C. § 207

Meal & rest break requirements

Indiana does not require meal breaks for adults. According to the Indiana Department of Labor, the state's youth employment law stopped requiring breaks for minors on April 1, 2020, although the Department still recommends them.

There is no rest-break requirement. Short breaks of about 5 to 20 minutes that an employer allows are paid working time under federal law.

If a break is missed:Indiana owes no premium pay for missed breaks.

Source: Indiana Department of Labor breaks and youth employment guidance; 29 C.F.R. § 785.18

Indiana state income tax

Indiana taxes adjusted gross income at a flat 2.95% for 2026, down from 3.00% in 2025, with a further cut to 2.90% scheduled for 2027. Most counties also levy a local income tax that is withheld alongside the state tax.

Indiana flat individual adjusted gross income tax rate (2026)

Taxable income	Rate
All taxable income	2.95%

There are no graduated brackets. County rates are published in Departmental Notice #1 and can change in January and October; from October 1, 2026, for example, Marion County is 2.02%, Lake 1.50%, Hendricks 1.70% and Hamilton 1.10%.

Source: Ind. Code § 6-3-2-1; Indiana DOR Departmental Notice #1 (effective Oct. 1, 2026)

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Vacation & paid time off (PTO)

Indiana does not require employers to offer vacation, but the Department of Labor treats accrued vacation as a form of compensation.

Accrued vacation is compensation, so a departing employee may be entitled to a pro rata share of accrued time — subject to any conditions in the company's written policy or contract.

"Use-it-or-lose-it" policies:Allowed if the policy sets that condition.

Paid out at termination?Generally yes for accrued time, unless the policy or contract sets conditions for payout that have not been met.

Source: Indiana Department of Labor FAQ on accrued vacation at separation

Final paycheck rules

Indiana sets one deadline for every separation: final wages are due on or before the next regularly scheduled payday on which the employee would have been paid had they stayed.

Situation	Final wages due
Fired or laid off	By the next regularly scheduled payday.
Quits or resigns (notice makes no difference)	By the next regularly scheduled payday — the same as a discharge.

Late final pay:If a court finds the employer did not act in good faith, it must award liquidated damages of two times the wages due, plus reasonable attorney's fees and court costs.

Source: Ind. Code §§ 22-2-9-2, 22-2-5-2

Other Indiana payroll taxes employers should know

Indiana employers pay state unemployment insurance (UI) tax on a small taxable wage base compared to most states; Indiana does not impose a separate state disability or paid-family-leave payroll tax.

Tax	Rate	Notes
Unemployment Insurance (UI)	0.50% to 7.40% (up to 9.40% for delinquent employers); new employers 2.50%	Taxable wage base is $9,500 per employee per year, one of the lowest wage bases nationally; rate depends on employer experience/merit rating.
County income tax — employee deduction	Set by each county; for example 2.02% in Marion and 1.10% in Hamilton from October 1, 2026	Withheld with state income tax and shown as its own line. Rates can change on January 1 and October 1.
State Disability Insurance and Paid Family Leave	None	Indiana has neither programme.

Source: Indiana Dept. of Workforce Development (DWD), Employer Guide — Rate Computation

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Common questions about Indiana pay stubs

Can I ask to be paid every two weeks in Indiana?

Yes. Indiana employers must pay at least semimonthly, and must switch to biweekly pay if the employee requests it.

Does Indiana require paid sick leave?

No. Indiana has no paid sick leave law, and the Department of Labor notes that no law generally requires employers to offer fringe benefits such as sick leave or vacation. Any paid sick time comes from the employer's own policy.

Why are there two income taxes on my Indiana pay stub?

One is the state tax, 2.95% for 2026; the other is your county's local income tax, which varies by county. Both are withheld by the employer and both appear on your W-2.

How do I file a wage claim in Indiana?

Through the Indiana Department of Labor's wage claim application, which handles claims above $30 and below $6,000, or through a private attorney. A court can award twice the unpaid wages if the employer did not act in good faith.

Guides that go with this page

Indiana's rules decide what has to appear on the stub. These cover what the figures on it actually mean, wherever you work.

What a pay stub is, line by line — Every section of a stub and what each figure means.
Gross pay vs. net pay — Why the amount that reaches your bank is a quarter smaller than your salary.
The extra 0.9% above $200,000 — Why your employer's withholding and what you actually owe can disagree.
Social Security and Medicare in 2026 — The federal payroll taxes that apply in every state, and the wage base that stops one of them.

Sources & references

Every figure on this page links back to the primary source below. State and federal payroll rules change — always confirm current-year figures directly with the agency before relying on exact dollar amounts.

Last checked: October 2026. See our editorial standards & sources for how these figures are verified.