Tax Planning for Physicians in Indianapolis (2026)

Indianapolis has no separate city income tax; instead, Marion County's local income tax functions as the city tax. Indiana sets your county rate by where you live on January 1.

2026 at a glance

Planning priorities

• Combined state and county tax for Indianapolis residents is about 4.97%.
• A physician who lives in Hamilton County and works in Indianapolis pays Hamilton County's rate, not Marion County's.
• Moving between counties late in the year does not change that year's county rate, because residency on January 1 controls.
• Indiana's pass-through entity tax is available to practice owners.

See the full Indiana physician tax guide.

More physician tax guides

• Other Indiana cities: Fort Wayne, Evansville, South Bend.
• State rules: Indiana physician tax guide and all 50 state guides.
• By specialty: Cardiologists, Gastroenterologists, Psychiatrists, Anesthesiologists and every specialty.
• Core strategy: tax planning for physicians, tax planning for medical practice owners, advanced strategies for high-income physicians and S corporation tax planning for physicians, plus the physician tax glossary.

This article is for general educational purposes and is not tax, legal or investment advice. Tax law changes often and its application depends on your facts. Figures reflect 2026 rules as published by the sources listed above. Consult a qualified professional before acting. See our editorial policy.