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Taxes In Indiana

Indiana Tax Rates, Collections, and Burdens

How does Indiana’s tax code compare? Indiana has a flat 3.05 percent individual income tax rate. There are also jurisdictions that collect local income taxes. Indiana has a 4.9 percent corporate income tax rate. Indiana also has a 7.00 percent state sales tax rate and does not have local sales taxes. Indiana has a 0.71 percent effective property tax rate on owner-occupied housing value.

Indiana does not have an estate tax or inheritance tax. Indiana has a 51.7 cents per gallon gas tax rate and a $1.32 cigarette excise tax rate. Indiana collects $5,354 in state and local tax collections per capita. Indiana has $7,548 in state and local debt per capita and has a 78 percent funded ratio of public pension plans. Overall, Indiana’s tax system ranks 10th on our 2024 State Business Tax Climate Index.

Each state’s tax code is a multifaceted system with many moving parts, and Indiana is no exception. The first step towards understanding Indiana’s tax code is knowing the basics. How does Indiana collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures 2024: How Does Your State Compare?

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Tax Data by State

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State Tax Data

Individual Taxes

Top Individual Income Tax Rate
3.05%See Full Study
State Local Individual Income Tax Collections per Capita
$1727Rank: 16
State and Local Tax Burden
9.3%Rank: 12See Full Study

Business Taxes

Top Corporate Income Tax Rate
4.9%See Full Study
State Business Tax Climate Index Ranking
10See Full Study

Sales Taxes

State Sales Tax Rate
7.00%Rank: 2See Full Study
Combined State and Average Local Sales Tax Rate
7.00%Rank: 25See Full Study
State and Local General Sales Tax Collections per Capita
$1361Rank: 27
State Gasoline Tax Rate (cents per gallon)
51.70¢Rank: 5
State Cigarette Tax Rate (dollars per 20-pack)
$1.32Rank: 38

Property Taxes

Property Taxes Paid as a Percentage of Owner-Occupied Housing Value
0.71%Rank: 30
State and Local Property Tax Collections Per Capita
$1208Rank: 39

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