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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