Regular readers of Tax Foundation reports know that we publish estimates of the distributional impact of federal tax changes: that is, we estimate how a tax reform might affect the after-tax incomes of taxpayers at...
The facts on Indiana’s Tax Climate
3.3%individual income taxFlat rate
6.5%corporate income taxFlat rate
$968property taxcollections per capita
Indiana's Individual Income Tax System
Indiana's individual income tax system consists of a flat rate of 3.3%. That rate ranks 41st highest among states levying an individual income tax. Indiana's state and local tax collections per person were $941 in 2013, which ranked 29th highest nationally.
50-State Table of Individual Income Tax Rates
Indiana's Corporate Income Tax System
Indiana's corporate income tax system consists of a flat rate of 6.5%. That rate ranks 24th highest among states levying a corporate income tax. Indiana's state and local corporate income tax collections per person were $119 in 2013 which ranked 33rd highest nationally.
50-State Table of Corporate Income Tax Rates
Indiana Sales and Excise Taxes
Indiana levies a 7% general sales or use tax on consumers, which is above the national median of 5.95%. Indiana does not levy additional local sales taxes. Indiana's state and local governments collect $1,034 per person in general sales taxes and $569 per person in excise taxes, for a combined figure of $1,603, which ranks 19th highest nationally. Indiana's gasoline tax stands at 29.89 cents per gallon, 23rd highest nationally, while its cigarette tax stands at $1.00, 33rd highest nationally.
50-State Table of State and Local Sales Tax Rates
Indiana Property Tax Collections Relatively Low
Indiana's state and local governments collected approximately $968 per person in property taxes in 2013, which ranks 36th nationally.
Tax Freedom Day Arrives on April 18th in Indiana
Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, Indiana taxpayers have to work until April 18th (24th earliest nationally) to pay their total tax bill.
Indiana's State and Local Tax Burden Ranks 22nd
Indiana's 2016 Business Tax Climate Index Ranks 8th
Indiana ranks 8th on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (20th), individual income taxes (11th), sales taxes (11th), unemployment insurance taxes (14th), and taxes on property (5th), including residential and commercial property.
State Business Tax Climate Index (full study)
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