Part of the Travel Nurse Tax Hub — browse every related guide in one place.
Last updated: July 2026 | Reading time: 6 min
Indiana is a moderately tax-friendly state for travel nurses, with a flat 3.05% state income tax rate and reciprocity agreements with five neighboring states. The complication: Indiana also has county-level income taxes that vary by where you work (and sometimes where you live). This guide covers what Indiana income taxes apply to travel nurses, the reciprocity rules, and what you owe on your stipends.
Indiana uses a flat income tax rate of 3.05% for 2026 (the rate has been decreasing incrementally under legislation — it was 3.23% in 2023). All wages earned while physically working in Indiana are subject to this rate, regardless of whether you're a travel nurse or a permanent resident.
For travel nurses, this means: every dollar of taxable hourly wages earned on an Indiana assignment is taxed at 3.05% to Indiana, in addition to whatever your home state charges. Your housing and meal stipends are tax-free (no Indiana tax on properly structured non-taxable stipends).
Indiana has 92 counties, and almost all of them impose an additional county income tax on wages earned within that county. Travel nurses working in Indiana owe both the state tax and the county tax for the county where their assignment is located.
Sample county tax rates (2026):
| County | Major Hospitals/Cities | County Tax Rate | Combined State + County |
|---|---|---|---|
| Marion | Indianapolis (IU Health, Eskenazi, St. Vincent) | 2.02% | 5.07% |
| Hamilton | Carmel, Fishers area (Ascension St. Vincent) | 1.10% | 4.15% |
| Allen | Fort Wayne (Lutheran Health, Parkview) | 1.48% | 4.53% |
| St. Joseph | South Bend (Beacon Health) | 1.75% | 4.80% |
| Vanderburgh | Evansville (Ascension, Deaconess) | 1.0% | 4.05% |
| Lake | Gary/Hammond area (Advocate, Methodist) | 1.50% | 4.55% |
Your Indiana employer should withhold both state and county tax from your paychecks. If they're not withholding county tax, you'll owe it at tax time — with potential underpayment penalties if the amount is significant.
Indiana has reciprocity agreements with five states: Kentucky, Michigan, Ohio, Pennsylvania, and Wisconsin. If you're a travel nurse who lives (has your tax home) in one of these states and works an Indiana assignment, you may file an exemption from Indiana withholding and only pay taxes to your home state.
| If your tax home is in... | Indiana reciprocity? | What to do |
|---|---|---|
| Kentucky | Yes | File Indiana WH-47 with employer; pay KY only |
| Michigan | Yes | File Indiana WH-47 with employer; pay MI only |
| Ohio | Yes | File Indiana WH-47 with employer; pay OH only |
| Pennsylvania | Yes | File Indiana WH-47 with employer; pay PA only |
| Wisconsin | Yes | File Indiana WH-47 with employer; pay WI only |
| All other states | No | Pay Indiana tax AND home state tax (credit for taxes paid to other states) |
Important: Even with reciprocity, you still owe Indiana county income tax. Reciprocity only covers the state-level tax. Submit Form WH-47 to your employer to stop state-level Indiana withholding, but county tax withholding should continue.
The same federal tax home rules apply in Indiana. To receive tax-free stipends on an Indiana assignment:
Common Indiana assignment hubs: Indianapolis (Marion County), Fort Wayne, South Bend, Evansville. If your permanent tax home is in Cincinnati, Chicago, Detroit, or Louisville, Indiana assignments are typically straightforward for stipend tax treatment.
If you're a non-resident working in Indiana during the tax year, you must file Indiana Form IT-40PNR (Part-Year Resident or Nonresident Return) if you earned any Indiana wages. Indiana's filing threshold for non-residents is $1,000 in Indiana income.
Indiana has a relatively simple tax system — the flat rate and county tax structure means there are fewer deductions to chase compared to states like California or New York. The IT-40PNR is generally straightforward; most tax software handles it with basic data entry.
See also: Travel Nurse Tax Guide 2026 · Ohio Travel Nurse Taxes · Michigan Travel Nurse Taxes
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