Roth conversion taxes in Indiana (2026)
By Mario Bailey · Published · Last reviewed
Indiana taxes Roth conversions as ordinary income at a flat 2.95%. A conversion adds to your state taxable income in the year you convert, on top of federal tax. The table below shows the computed Indiana tax on a $50,000 conversion at three baseline income levels, using 2026 rates.
Computed example: $50,000 conversion
State tax only (federal not included), age 66, standard deduction, no other state adjustments. Computed with the same functions the calculator uses.
| Filing status | Baseline income | State tax without conversion | With $50,000 conversion | Tax on the conversion | Effective rate |
|---|---|---|---|---|---|
| Single | $40,000 | $679 | $2,154 | $1,475 | 2.9% |
| Single | $80,000 | $1,859 | $3,334 | $1,475 | 2.9% |
| Single | $150,000 | $3,924 | $5,399 | $1,475 | 2.9% |
| Married filing jointly | $40,000 | $649 | $2,124 | $1,475 | 2.9% |
| Married filing jointly | $80,000 | $1,829 | $3,304 | $1,475 | 2.9% |
| Married filing jointly | $150,000 | $3,894 | $5,369 | $1,475 | 2.9% |
Social Security and retirement income
Indiana does not tax Social Security benefits. A conversion can still raise the federally taxable share of your benefits through the provisional income formula. Indiana also excludes up to $16,000 of retirement income for filers age 62 and over, which can shelter part of a conversion depending on how the state defines eligible retirement income.
FAQ
Does Indiana tax Roth conversions?
Yes. Indiana taxes Roth conversions as ordinary income at a flat 2.95%. Federal tax applies on top.
Does Indiana tax Social Security benefits?
No. Social Security benefits are not subject to Indiana income tax.
What is the top Indiana rate on a conversion in 2026?
2.95% at the highest flat rate.
Model your Indiana conversion in the calculator
Rate data source: https://www.in.gov/dor/resources/tax-rates-and-reports/rates-fees-and-penalties/ (IN DOR: "The Indiana Individual adjusted gross income tax rate for 2026 is 2.95%")