Indiana

The facts on Indiana’s Tax Climate

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
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 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
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 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 General and Selective Sales Tax Collections Per Capita

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.
State and local property tax collections per capita by state

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 2012 tax burden of 9.5% ranks 22nd highest in the nation, and is below the national average of 9.9%. Indiana's taxpayers pay $3585 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 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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