Skip to content

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. Indiana’s tax system ranks 10th overall on the 2025 State Tax Competitiveness 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?

Stay informed on the tax policies impacting you.

Subscribe to get insights from our trusted experts delivered straight to your inbox.

Subscribe

See Related Articles

Tax Data by State

Get facts about taxes in your state and around the U.S.

Explore Data

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

All Related Articles

Guide to property taxes Andrey Popov comp 2

Close to Home: A Short Guide to Property Taxes

As housing prices are rapidly increasing, and property tax bills along with them, the property tax has come into the spotlight in many states. The design of a state’s property tax system can affect how attractive that state is to businesses and residents.

9 min read
Will the Federal Government Tax Your State Tax Rebates Inflation Relief Checks

Will the Federal Government Tax Your State Tax Rebate?

If your state issued tax rebates last year, you might have to pay federal income tax on the rebate you received. Maybe. Who knows? Unfortunately, not the IRS—at least not yet.

5 min read
2022 State & 2022 sales tax, Local Sales Tax Rates, 2022 State Sales Tax Rates, 2022 Local Sales Tax rates

State and Local Sales Tax Rates, 2023

While many factors influence business location and investment decisions, sales taxes are something within policymakers’ control that can have immediate impacts.

11 min read
latest state tax trends and state tax cuts include responsible state income tax relief in 2024

There’s Still Room for Responsible State Income Tax Relief in 2023

Forty-three states adopted tax relief in 2021 or 2022—often in both years—and of those, 21 cut state income tax rates. It’s been a remarkable trend, driven by robust state revenues and an increasingly competitive tax environment.

4 min read