diff --git a/spec/text-editor-spec.coffee b/spec/text-editor-spec.coffee
index f20184e01..64bb7adba 100644
--- a/spec/text-editor-spec.coffee
+++ b/spec/text-editor-spec.coffee
@@ -3707,11 +3707,12 @@ describe "TextEditor", ->
       expect(editor.indentLevelForLine("\t\thello")).toBe(2)
 
     it "returns the indent level based on the character starting the line when the leading whitespace contains both spaces and tabs", ->
-      expect(editor.indentLevelForLine("\t  hello")).toBe(1)
-      expect(editor.indentLevelForLine("  \thello")).toBe(1)
-      expect(editor.indentLevelForLine("  \t hello")).toBe(1)
-      expect(editor.indentLevelForLine("    \t \thello")).toBe(2)
-      expect(editor.indentLevelForLine("     \t \thello")).toBe(2.5)
+      expect(editor.indentLevelForLine("\t  hello")).toBe(2)
+      expect(editor.indentLevelForLine("  \thello")).toBe(2)
+      expect(editor.indentLevelForLine("  \t hello")).toBe(2.5)
+      expect(editor.indentLevelForLine("    \t \thello")).toBe(4)
+      expect(editor.indentLevelForLine("     \t \thello")).toBe(4)
+      expect(editor.indentLevelForLine("     \t \t hello")).toBe(4.5)
 
   describe "when the buffer is reloaded", ->
     it "preserves the current cursor position", ->
diff --git a/src/selection.coffee b/src/selection.coffee
index 3f7878195..6a4d4726f 100644
--- a/src/selection.coffee
+++ b/src/selection.coffee
@@ -622,7 +622,7 @@ class Selection extends Model
       else
         currentIndentLevel = @editor.indentLevelForLine(lines[i])
         indentLevel = Math.max(0, currentIndentLevel + indentAdjustment)
-        lines[i] = line.replace(/^(\t+| +)/, @editor.buildIndentString(indentLevel))
+        lines[i] = line.replace(/^[\t ]+/, @editor.buildIndentString(indentLevel))
     return
 
   # Indent the current line(s).
diff --git a/src/text-editor.coffee b/src/text-editor.coffee
index 3b19970b8..37d9c2021 100644
--- a/src/text-editor.coffee
+++ b/src/text-editor.coffee
@@ -2447,13 +2447,14 @@ class TextEditor extends Model
     options.autoIndent ?= @shouldAutoIndent()
     @mutateSelectedText (selection) -> selection.indent(options)
 
-  # Constructs the string used for tabs.
-  buildIndentString: (number, column=0) ->
+  # Constructs the string used for indents.
+  buildIndentString: (level, column=0) ->
     if @getSoftTabs()
       tabStopViolation = column % @getTabLength()
-      _.multiplyString(" ", Math.floor(number * @getTabLength()) - tabStopViolation)
+      _.multiplyString(" ", Math.floor(level * @getTabLength()) - tabStopViolation)
     else
-      _.multiplyString("\t", Math.floor(number))
+      excessWhitespace = _.multiplyString(' ', Math.round((level - Math.floor(level)) * @getTabLength()))
+      _.multiplyString("\t", Math.floor(level)) + excessWhitespace
 
   ###
   Section: Grammars
diff --git a/src/tokenized-buffer.coffee b/src/tokenized-buffer.coffee
index 5919841f5..e44183489 100644
--- a/src/tokenized-buffer.coffee
+++ b/src/tokenized-buffer.coffee
@@ -421,10 +421,15 @@ class TokenizedBuffer extends Model
       @indentLevelForLine(line)
 
   indentLevelForLine: (line) ->
-    if match = line.match(/^\t+/)
-      match[0].length
-    else if match = line.match(/^ +/)
-      match[0].length / @getTabLength()
+    if match = line.match(/^[\t ]+/)
+      indentLength = 0
+      for character in match[0]
+        if character is '\t'
+          indentLength += @getTabLength() - (indentLength % @getTabLength())
+        else
+          indentLength++
+
+      indentLength / @getTabLength()
     else
       0