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Taxes In Indiana

Indiana Tax Rates, Collections, and Burdens

How does Indiana’s tax code compare? Indiana has a flat 3.15 percent individual income tax rate. There also are jurisdictions that collect local income taxes. Indiana has a 4.90 percent corporate income tax rate. Indiana has a 7.00 percent state sales tax rate and does not levy any local sales taxes. Indiana’s tax system ranks 9th overall on our 2023 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: 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
3.15%See Full Study
State Local Individual Income Tax Collections per Capita
$1554Rank: 20
State and Local Tax Burden
8.9%Rank: 12See Full Study

Business Taxes

Top Corporate Income Tax Rate
4.9%See Full Study
State Business Tax Climate Index Ranking
9See 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: 24See Full Study
State and Local General Sales Tax Collections per Capita
$1213Rank: 26
State Gasoline Tax Rate (cents per gallon)
49.79¢Rank: 7
State Cigarette Tax Rate (dollars per 20-pack)
$0.995Rank: 38

Property Taxes

Property Taxes Paid as a Percentage of Owner-Occupied Housing Value
0.84%Rank: 30
State and Local Property Tax Collections Per Capita
$1146Rank: 38

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