The facts on Indiana’s Tax Climate
3.4%individual income taxFlat rate
8%corporate income taxFlat rate
$1182property taxcollections per capita
Indiana's Individual Income Tax System
Indiana's personal income tax system consists of a flat rate of 3.4%. That rate ranks 9th lowest among states levying an individual income tax. Indiana's income tax collections per person were $838 in 2010 which ranked 22nd highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Indiana's Corporate Income Tax System
Indiana's corporate income tax system consists of a flat rate of 8%. That rate ranks 15th highest among states levying an corporate income tax. Indiana's corporate tax collections per person were $92 in 2010 which ranked 22nd lowest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Indiana Sales and Excise Taxes
Indiana levies a 7% general sales or use tax on consumers, which is above the national median of 6%. Indiana's state and local governments collect $918 per person in general sales taxes and $417 per person in excise taxes, for a combined figure of $1335, which ranks 23rd highest nationally. Indiana's gasoline tax stands at 38¢ (7th highest nationally), while its cigarette tax stands at $1 (20th lowest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Indiana Property Tax Collections Average
Indiana's state and local governments collected approximately $1182 per person in property taxes, which ranks 22nd lowest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 13th in Indiana
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2013, Indiana taxpayers worked until April 13th (25th earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Michigan, April 14th (ranked 23rd latest nationally); Illinois, April 25th (ranked 5th latest nationally); Kentucky, April 6th (ranked 10th earliest nationally); and Ohio, April 12th (ranked 22nd earliest nationally).
Indiana's State and Local Tax Burden In Line with National Average
Indiana's 2010 tax burden of 9.59% ranks 23rd highest out of 50 states, and is below the national average of 9.9%. Indiana's taxpayers pay $3294 per capita in state and local taxes.
Indiana's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Indiana's 2014 Business Tax Climate Index Ranks 10
Indiana ranks 10th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Michigan, 14th, Illinois, 31st, Kentucky, 27th, and Ohio, 39th.
50-State Comparison of Business Tax Climates (data only) (2013)
2014 State Business Tax Climate Index (full study)
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