Indiana Overtime Calculator (2026): Gross, Net Take-Home & County Tax

1. Indiana Overtime Law & The $7.25 Minimum Wage (IC 22-2-2-4(f))

Indiana overtime law is codified under the Indiana Minimum Wage Law of 1965 (IC 22-2-2-4(f)) and operates in harmony with the federal Fair Labor Standards Act (FLSA, 29 U.S.C. § 207). Non-exempt employees must be compensated at not less than 1.5× their regular hourly rate for all hours worked beyond 40 in a designated 7-day workweek.

Key statutory standards in Indiana include:

• Strictly Weekly Overtime: Indiana has no daily overtime trigger. Working a 10-hour or 12-hour shift in a single day does not trigger overtime pay unless your cumulative hours in the 7-day workweek exceed 40.0.
• No Double-Time Multiplier: Indiana law does not mandate double-time (2.0×) pay under any circumstance. Double-time exists only if explicitly promised in a private employment contract or union collective bargaining agreement.
• Mandatory Overtime is Legal: Indiana employers may mandate overtime for adult employees. An employee can be legally discharged for refusing to work scheduled overtime hours, provided total overtime pay is properly disbursed.
• Prohibition on Averaging Workweeks: Employers cannot average hours across a bi-weekly 80-hour pay period. Working 50 hours in week one and 30 hours in week two triggers 10 hours of statutory overtime pay in week one.
• Minimum Wage Floor: Indiana's minimum wage is $7.25 per hour, unchanged since July 24, 2009. Indiana has no scheduled wage increases and no automatic inflation indexing. Furthermore, under IC 22-2-2-10.5, Indiana expressly preempts local governments from establishing local minimum wages above $7.25/hour anywhere in the state.
• Exempt Salary Threshold ($684/Week): Salaried executive, administrative, and professional employees are exempt from overtime only if paid a predetermined salary of at least $684 per week ($35,568 per year) and they satisfy bona fide duties tests under 29 C.F.R. Part 541. Stale numbers occasionally cited online — including $844/week, $1,128/week, or the pre-2004 $150/week — are legally invalid.

2. Tipped Workers, Tip Credit & Youth Training Wages

Under IC 22-2-2-4(c), Indiana allows employers to take a maximum tip credit of $5.12 per hour against the standard $7.25 minimum wage, resulting in a mandatory direct cash wage of $2.13 per hour for tipped employees.

When a tipped employee works overtime in Indiana, overtime must be calculated on the FULL $7.25 statutory minimum wage, never on the $2.13 cash wage:

• Full Overtime Rate Floor: $7.25 × 1.5 = $10.88 per hour ($10.875 rounded)
• Less Maximum Tip Credit: -$5.12 per hour
• Mandatory Direct Employer Cash per OT Hour: $5.76 per hour ($10.88 − $5.12)

For youth workers under 20 years of age, Indiana law and the FLSA permit an employer to pay a training wage of $4.25 per hour during the worker's first 90 consecutive calendar days of employment. After 90 days or upon reaching age 20, the employee must be paid at least the full $7.25 statutory rate.

3. All 92 Indiana Counties & Local Income Tax (LIT)

Indiana is unique nationally in that every single one of its 92 counties levies a local income tax (LIT) under IC 6-3.6, administered centrally by the Indiana Department of Revenue. Rates are published in Departmental Notice #1 (effective October 1, 2025).

Crucial rules governing Indiana county taxes:

• January 1 Residence Lock-In: Under IC 6-3.6-8-4, your county tax rate is determined strictly by the county where you resided on January 1 of the tax year. If you move to another Indiana county during the year, your withholding and tax liability remain fixed to your January 1 residence county for the full calendar year.
• Out-of-State Nonresidents: If you lived outside Indiana on January 1 but performed work within Indiana, you are taxed based on the Indiana county of your principal place of business or employment as of January 1.
• Rate Spectrum: County rates range from a low of 0.50% in Porter County to a high of 3.00% in Randolph County. Marion County (Indianapolis) levies a 2.02% county tax.
• Combined State + County Rates (2026): With Indiana's flat state rate at 2.95% in 2026, combined income tax rates across Indiana range from 3.45% (Porter County) to 5.95% (Randolph County), with Marion County workers paying 4.97%.

4. Final Paycheck & Vacation Payout Laws (IC 22-2-5-2)

Under the Indiana Payment of Wages Act (IC 22-2-5-2), whenever an employee separates from employment — whether they voluntarily quit, resigned, were laid off, or fired — the employer must issue their final paycheck no later than the next regularly scheduled payday for the pay period in which the separation occurred.

Statutory remedies and rules include:

• 10-Business-Day Address Rule: If a separated employee fails to pick up their final check or does not provide a valid mailing address, the employer is not legally penalized until 10 business days after a written demand or verified address is furnished.
• Liquidated Damages for Bad Faith: If an employer withholds wages in bad faith or without reasonable justification, Indiana courts are authorized under IC 22-2-5-2 to award statutory liquidated damages of up to double the unpaid wages (2× damages, totaling treble damages) plus mandatory reasonable attorney's fees and litigation costs.
• Vacation / PTO Payout: Indiana statute does not mandate vacation pay. However, under established Indiana appellate case law (Die & Mold, Inc. v. Western), earned, promised vacation constitutes deferred compensation and must be paid out upon separation unless the employer's published written policy or handbook clearly and unequivocally states that unused vacation is forfeited.
• IDOL Jurisdiction: The Indiana Department of Labor (IDOL) will accept wage claims for earned, unpaid vacation time. However, IDOL does NOT process claims for holiday pay, sick pay, severance pay, or discretionary bonuses ("time not worked").

5. Meal and Rest Break Laws in Indiana

Indiana has no statutory requirement for adult meal or rest breaks:

• Adult Employees (18+): Neither Indiana law nor the FLSA requires employers to provide meal breaks or rest pauses to employees aged 18 and older. Employers may require adult workers to work continuous shifts without breaks. If short rest breaks of 20 minutes or less are provided, federal law requires that they be compensated as working hours.
• Minors Under 18: Under Indiana youth employment standards, any minor working a shift of 6 or more consecutive hours must be provided with meal or rest breaks totaling at least 30 minutes. While the statutory total of 30 minutes is mandatory, sources note that employers maintain scheduling discretion regarding whether this is provided as a single 30-minute meal period or divided into two 15-minute breaks.

6. Regular Rate Math for Bonuses & Commissions

When non-exempt workers receive non-discretionary bonuses (such as attendance, safety, or production bonuses) or commissions, Indiana law and the FLSA require the bonus to be rolled into the employee's regular rate before calculating the 1.5× overtime multiplier:

7. Sector-Specific Overtime Rules & Exemptions

Specific rules apply across distinct Indiana industries:

• Compensatory Time ("Comp Time"): Offering comp time in lieu of cash overtime is strictly illegal in Indiana private-sector employment under both state and federal law. Only public-sector government employers (state, county, municipal agencies) can provide comp time at 1.5 hours per overtime hour worked under a formal agreement.
• Firefighters & Police (207(k)): Under FLSA § 207(k), public fire protection agencies can adopt work periods of up to 28 consecutive days, triggering overtime after 212 hours worked in 28 days (or 106 hours in 14 days).
• Healthcare 8-and-80 System: Under 29 U.S.C. § 207(j), hospitals and residential care facilities can elect the 8-and-80 overtime system (overtime after 8 hours in a workday and after 80 hours in a 14-day pay period). This is a federal elective option, NOT an Indiana state mandate.
• No Nurse Mandatory Overtime Ban: Unlike several states that prohibit mandatory overtime for registered nurses, Indiana has no statute prohibiting mandatory overtime for nurses or healthcare personnel.
• Agricultural Exemption: Agricultural workers engaged in farming, livestock, or harvesting are exempt from statutory overtime under IC 22-2-2-3 and federal FLSA § 13(b)(12). Other IC 22-2-2-3 exemptions include domestic service workers, immediate family members, and outside sales staff.

8. Filing a Wage Complaint with the Indiana Department of Labor (IDOL)

If your employer has withheld statutory overtime or regular wages, you can seek recovery through administrative or judicial channels:

• Agency: Indiana Department of Labor (IDOL), Wage and Hour Division
• Address: 402 W. Washington Street, Room W195, Indianapolis, IN 46204
• Phone: (317) 232-2655 • Online Wage Claim Application available on in.gov/dol
• Monetary Limits: IDOL will only investigate wage claims between $30.00 minimum and $6,000.00 maximum. Claims exceeding $6,000 must be filed as a private civil lawsuit in court.
• Investigation Timeline: Upon receiving a claim, IDOL sends a copy to the employer with a 2-week response window. If unanswered, a 1-week final notice is dispatched. The full administrative process can take up to 90 days.
• CRITICAL ON-PAGE WARNING: Indiana law provides NO statutory job protection or administrative anti-retaliation remedy for employees who file an administrative wage claim against a current employer. Filing against an active employer carries severe risk of termination. Most wage claims are filed following separation.
• Filing Deadlines (State Both): Under federal FLSA (29 U.S.C. § 255), civil overtime lawsuits must be filed within 2 years (extended to 3 years for willful violations). Under Indiana state statutes, deadlines are stated differently across legal sources (2 years for statutory wage claims under IC 34-11-2-1 vs. 3 years in certain administrative contexts). Workers should file promptly and never rely on the longer figure.