-
Overall Rank
14
Down 3 places since 2026 -
11
Down 4 places since 2026 -
28
Down 7 places since 2026 -
15
No change since 2026 -
4
No change since 2026 -
Unemployment Insurance Tax Rank
14
Up 1 place since 2026
Indiana ranks 14th overall on the 2027 State Tax Competitiveness Index.
Score 5.51 / 10
Notable Changes Indiana is singled out in the study for this year's changes.
In the 2027 Index
Indiana fell three spots, to 14th overall. Despite a low, flat state individual income tax rate of 2.95 percent, Indiana authorizes counties to impose local income taxes at rates that nearly double the combined rate in some jurisdictions. Additionally, Indiana narrows its tax base by offering income tax deductions for qualified tips and overtime pay. As a result, Indiana’s individual income tax ranking fell from 21st to 28th. Indiana does not conform to key expensing provisions, including Section 168(k) and Section 174A, while several competing states do. As a result, its corporate income tax ranking fell from 7th to 11th. Indiana maintains a property and wealth tax ranking of 4th, due in part to the increase to its tangible personal property (TPP) tax exemption from $80,000 to $2 million.
Snapshot date: The 2027 Index measures each state's tax law as of July 1, 2026. Changes enacted after that date are not reflected in these ranks.
About Indiana's Tax Code
Indiana’s tax code includes all major tax types, but the state has ranked well on the Index since reforms inaugurated in the early 2010s. Indiana has low, single-rate state income taxes and has one of the most efficient property tax systems in the nation, using levy limits to constrain the unlegislated growth of property taxes. However, despite the state’s low, flat 2.95 percent individual income tax (down from 3.00 percent last year), Indiana allows its counties to impose nonuniform local income tax rates, which range from 0.5 to 3 percent, a factor that negatively impacts the state’s competitiveness.
Indiana’s flat corporate tax rate of 4.9 percent is one of the lowest in the Midwest. Unlike nearby Ohio, Indiana does not impose a harmful gross receipts tax. The state also does not have a throwback rule, offers generous carryforwards for net operating losses, and does not impose a capital stock tax. Indiana is decoupled from federal bonus depreciation—Section 168(k)—which permanently allows immediate full expensing of qualified machinery and equipment investments. Conformity to these provisions could strengthen Indiana’s attractiveness as a location for investment and innovation. Indiana is one of the few states that does not allow local governments to impose local option sales taxes. While the state’s sales tax rate of 7 percent is one of the highest in the country, the overall consumption tax burden is only moderately above average given the absence of a local-level tax. The sales tax base in the state is relatively narrow, as most personal consumption services are excluded from the base, while some business inputs are included. Modernizing the sales tax base is a potentially valuable reform for Indiana to consider.
In 2025, Indiana passed legislation tripling the state’s tobacco tax of $0.995 per pack of cigarettes to $2.995 per pack of cigarettes, surpassing Illinois in imposing the highest tobacco tax in the region.
Although the state taxes tangible personal property, its newly increased de minimis exemption of $2 million will significantly reduce compliance costs for both small and many medium-sized businesses. Additionally, Indiana does not impose inheritance, estate, or gift taxes.
Component Scores
#14 overall · 5.51 / 10Each component is scored from 0 to 10, where 10 is best. Select a component for its detail page.
| Component | Rank | Score | |
|---|---|---|---|
| Corporate Taxes | #11 | 5.64 / 10 | |
| Individual Income Taxes | #28 | 5.16 / 10 | |
| Sales Taxes | #15 | 5.27 / 10 | |
| Property Taxes | #4 | 6.39 / 10 | |
| Unemployment Insurance Taxes | #14 | 5.51 / 10 |
Ranking Changes, 2020–2027
#14 in 2027 · down 4 places from 2020Indiana ranked 10th in 2020 and ranks 14th in 2027, a decline of 4 places. The axis is zoomed to the state's range. Ranks for 2020 through 2026 are backcast under the current methodology.
Show the Table
| Year | Overall | Corporate | Individual Income | Sales | Property | Unemployment Insurance |
|---|---|---|---|---|---|---|
| 2020 | 10 (5.55) | 7 (5.62) | 17 (5.47) | 16 (5.20) | 3 (6.35) | 18 (5.25) |
| 2021 | 11 (5.51) | 6 (5.66) | 20 (5.35) | 16 (5.22) | 4 (6.30) | 19 (5.24) |
| 2022 | 11 (5.55) | 5 (5.77) | 17 (5.53) | 19 (5.04) | 3 (6.34) | 23 (5.23) |
| 2023 | 12 (5.58) | 6 (5.74) | 17 (5.50) | 16 (5.17) | 4 (6.31) | 18 (5.31) |
| 2024 | 11 (5.62) | 7 (5.88) | 20 (5.46) | 14 (5.21) | 4 (6.30) | 15 (5.42) |
| 2025 | 9 (5.69) | 7 (5.86) | 18 (5.56) | 14 (5.40) | 4 (6.31) | 15 (5.43) |
| 2026 | 11 (5.58) | 7 (5.79) | 21 (5.39) | 15 (5.24) | 4 (6.28) | 15 (5.48) |
| 2027 | 14 (5.51) | 11 (5.64) | 28 (5.16) | 15 (5.27) | 4 (6.39) | 14 (5.51) |
Indiana Compared across the States
#14 overallEach row places the states on a 0 to 10 score scale for one measure. Indiana is the large outlined dot, and the dashed line is the 50-state median, so a dot to its right scores better than the typical state. Hover over or tab to any dot for detail, and select it to open that state's profile.
Overall
#14 5.51
Corporate Taxes
#11 5.64
Individual Income Taxes
#28 5.16
Sales Taxes
#15 5.27
Property Taxes
#4 6.39
Unemployment Insurance Taxes
#14 5.51
- Indiana
- Other states, by rank (1st to 50th)
- 50-state median
Indiana and Its Neighbors
#14 overallIndiana borders 4 states and ranks 14th overall; it outranks every one of them.
What Each Component Includes
The five components of the Index, what each one covers, and where Indiana lands. Open any component for the full breakdown.
-
Corporate Taxes
Rank #11Includes corporate income taxes and gross receipts taxes. Measures the impact of each state’s principal tax on business activities.
Full Breakdown for Indiana → -
Individual Income Taxes
Rank #28Covers the tax individuals pay on income, and with it a significant number of businesses — sole proprietorships, partnerships, and S corporations — that report their income through the individual income tax code.
Full Breakdown for Indiana → -
Sales Taxes
Rank #15Covers the general sales tax levied on the purchase price of goods and services, plus excise taxes on gasoline, diesel, tobacco, vapor products, beer, and spirits, and taxes on digital advertising.
Full Breakdown for Indiana → -
Property Taxes
Rank #4Includes taxes on real and personal property, net worth, and the transfer of assets — among them capital stock, estate, inheritance, and real estate transfer taxes.
Full Breakdown for Indiana → -
Unemployment Insurance Taxes
Rank #14Covers the taxes employers pay into the state unemployment insurance program to finance benefits for workers recently unemployed.
Full Breakdown for Indiana →
Tax Data Explorer
Every policy variable behind Indiana's 2027 scores, grouped by the report's tables, as of July 1, 2026. Its bordering states are shown alongside to start. Search the variables and values, or add up to 4 states to compare side by side.
147 data points · Shaded values differ from Indiana
Corporate Taxes: Corporate Income Tax Rates
| Variable | Indiana | Illinois | Kentucky | Michigan | Ohio |
|---|---|---|---|---|---|
| Bracket 1 | 4.9% > $0 | 9.5% > $0 (differs) | 5.0% > $0 (differs) | 6.0% > $0 (differs) | None (differs) |
| Gross Receipts Tax | No | No | No | No | Yes (differs) |
| Gross Receipts Tax Minimum Rate | n.a. | n.a. | n.a. | n.a. | 0.26% (differs) |
| Gross Receipts Tax Maximum Rate | n.a. | n.a. | n.a. | n.a. | 0.26% (differs) |
| Gross Receipts Tax Rate Used in the Index | n.a. | n.a. | n.a. | n.a. | 0.26% (differs) |
Corporate Taxes: Tax Credits and Gross Receipts Deductions
| Variable | Indiana | Illinois | Kentucky | Michigan | Ohio |
|---|---|---|---|---|---|
| Job Credits | Yes | Yes | Yes | No (differs) | Yes |
| Research and Development Credits | Yes | Yes | Yes | Yes | Yes |
| Investment Credits | Yes | Yes | Yes | No (differs) | Yes |
| Compensation Expenses Deductible | n.a. | n.a. | n.a. | n.a. | No (differs) |
| Cost of Goods Sold Deductible | n.a. | n.a. | n.a. | n.a. | No (differs) |
Corporate Taxes: Net Operating Losses
| Variable | Indiana | Illinois | Kentucky | Michigan | Ohio |
|---|---|---|---|---|---|
| Conforms to Federal NOL Treatment | No | No | Yes (differs) | No | n.a. (differs) |
| Carryback (Years) | 0 | 0 | Conforms to federal treatment (differs) | 0 | n.a. (differs) |
| Carryback Cap | $0 | $0 | Conforms to federal treatment (differs) | $0 | n.a. (differs) |
| Carryforward (Years) | 20 | 20 | Conforms to federal treatment (differs) | 10 (differs) | n.a. (differs) |
| Carryforward Cap | Unlimited | $500,000 (differs) | Conforms to federal treatment (differs) | Unlimited | n.a. (differs) |
Corporate Taxes: Treatment of Capital Investment
| Variable | Indiana | Illinois | Kentucky | Michigan | Ohio |
|---|---|---|---|---|---|
| Section 168(k) Expensing | 0% | 0% | 0% | 0% | 100% (differs) |
| Conforms to Section 163(j) Limitation | No | Yes (differs) | Yes (differs) | Yes (differs) | No |
| GILTI Inclusion | Decouples | 50% Inclusion (differs) | Decouples | Decouples | n.a. (differs) |
| Section 174 Expensing | Yes | Yes | No (differs) | No (differs) | Yes |
| Section 168(n) Expensing | No | No | No | No | Yes (differs) |
Corporate Taxes: Other Corporate Base Variables
| Variable | Indiana | Illinois | Kentucky | Michigan | Ohio |
|---|---|---|---|---|---|
| Federal Income Used as State Tax Base | Yes | Yes | Yes | Yes | Yes |
| Conformity Status | Static (current) | Rolling (differs) | Static (current) | Rolling (differs) | Static (current) |
| Allows Federal ACRS or MACRS Depreciation | Yes | Yes | Yes | Yes | Yes |
| Allows Federal Depletion | Yes | Yes | Yes | Yes | Yes |
| Throwback Rule | No | Yes (differs) | No | No | No |
| Foreign Tax Deductibility | Yes | Yes | No (differs) | No (differs) | Yes |
| Corporate AMT | No | No | Yes (differs) | No | No |
| Brackets Indexed for Inflation | Flat CIT | Flat CIT | Flat CIT | Flat CIT | GRT (differs) |
Individual Income Taxes: Individual Income Tax Rates
| Variable | Indiana | Illinois | Kentucky | Michigan | Ohio |
|---|---|---|---|---|---|
| Bracket 1 | 2.95% > $0 | 4.95% > $0 (differs) | 3.5% > $0 (differs) | 4.25% > $0 (differs) | 2.75% > $26,050 (differs) |
| Standard Deduction (Single Filer) | n.a. | n.a. | $3,360 (differs) | n.a. | n.a. |
| Personal Exemption (Single Filer) | $1,000 | $2,925 (differs) | n.a. (differs) | $5,900 (differs) | $2,400 (differs) |
| Personal Exemption Credit (Single Filer) | n.a. | n.a. | n.a. | n.a. | n.a. |
| Personal Exemption per Dependent | $1,000 | $2,925 (differs) | n.a. (differs) | $5,900 (differs) | $2,400 (differs) |
| Personal Exemption Credit per Dependent | n.a. | n.a. | n.a. | n.a. | n.a. |
| Average Local Income Tax Rate | 1.76% | None (differs) | 2.25% (differs) | 1.95% (differs) | 2.50% (differs) |
| Surtaxes on Wage Income | n.a. | 1.5% (differs) | n.a. | n.a. | n.a. |
Individual Income Taxes: Marriage Penalty, Capital Income, Indexation
| Variable | Indiana | Illinois | Kentucky | Michigan | Ohio |
|---|---|---|---|---|---|
| Marriage Penalty | No | No | No | No | Yes (differs) |
| Married Couples Can File Separately on One Return | No | No | Yes (differs) | No | No |
| Convenience Rule | No | No | No | No | No |
| Interest Taxed | Yes | Yes | Yes | Yes | Yes |
| Dividends Taxed | Yes | Yes | Yes | Yes | Yes |
| Capital Gains Taxed | Yes | Yes | Yes | Yes | Yes |
| Combined Capital Gains Tax Rate | 4.755% | 4.95% (differs) | 3.5% (differs) | 6.2% (differs) | 3.125% (differs) |
| Tax Brackets Indexed for Inflation | Yes | Yes | Yes | Yes | No (differs) |
| Standard Deduction Indexed for Inflation | Yes | Yes | Yes | Yes | Yes |
| Personal Exemption Indexed for Inflation | No | Yes (differs) | Yes (differs) | Yes (differs) | No |
| Progressivity Ratio | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
Individual Income Taxes: Other Individual Base Variables
| Variable | Indiana | Illinois | Kentucky | Michigan | Ohio |
|---|---|---|---|---|---|
| Federal Income Used as State Tax Base | Yes | Yes | Yes | Yes | Yes |
| Conformity Status | Static (current) | Rolling (differs) | Static (current) | Rolling (differs) | Static (current) |
| Credits for Taxes Paid to Other States | Yes | Yes | Yes | Yes | Yes |
| AMT Levied | No | No | No | No | No |
| Recognition of S Corporation Status | Yes | Yes | Yes | Yes | Yes |
| Section 179 Expensing Limit | $25,000 | $2,560,000 (differs) | $100,000 (differs) | $1,250,000 (differs) | $446,667 (differs) |
| Tips | Exempt | Taxable (differs) | Taxable (differs) | Exempt | Taxable (differs) |
| Overtime | Exempt | Taxable (differs) | Taxable (differs) | Exempt | Taxable (differs) |
| Filing and Withholding Threshold Index | 10 | 10 | 0 (differs) | 0 (differs) | 0.169 (differs) |
Individual Income Taxes: Other Individual Income Variables
| Variable | Indiana | Illinois | Kentucky | Michigan | Ohio |
|---|---|---|---|---|---|
| Income Recapture | No | No | No | No | No |
Sales Taxes: Sales and Excise Tax Rates
| Variable | Indiana | Illinois | Kentucky | Michigan | Ohio |
|---|---|---|---|---|---|
| State Sales Tax Rate | 7.00% | 6.25% (differs) | 6.00% (differs) | 6.00% (differs) | 5.75% (differs) |
| Average Local Sales Tax Rate | 0.00% | 2.73% (differs) | 0.00% | 0.00% | 1.54% (differs) |
| Maximum Local Sales Tax Rate | None | 4.75% (differs) | None | None | 2.25% (differs) |
| Gasoline Tax (Cents per Gallon) | 63.10 | 70.40 (differs) | 26.40 (differs) | 53.40 (differs) | 38.50 (differs) |
| Diesel Tax (Cents per Gallon) | 64 | 77.9 (differs) | 23.4 (differs) | 53.4 (differs) | 47 (differs) |
| Cigarette Tax (Dollars per Pack of 20) | $2.995 | $2.98 (differs) | $1.103 (differs) | $2.00 (differs) | $1.60 (differs) |
| Beer Tax (Dollars per Gallon) | $0.115 | $0.231 (differs) | $0.8906 (differs) | $0.2032 (differs) | $0.18 (differs) |
| Spirits Tax (Dollars per Gallon) | $2.68 | $8.55 (differs) | $9.56 (differs) | $14.61 (differs) | $12.33 (differs) |
| Vapor Tax Ratio to Cigarette Tax | 78.50% | 117.75% (differs) | 83.3333% (differs) | n.a. (differs) | 10.00% (differs) |
Sales Taxes: Business-to-Business Exemptions
| Variable | Indiana | Illinois | Kentucky | Michigan | Ohio |
|---|---|---|---|---|---|
| Business Inputs | Some Taxable | Some Taxable | Some Taxable | Some Taxable | Some Taxable |
| Farm Equipment | Exempt | Exempt | Exempt | Exempt | Exempt |
| Office Equipment | Taxable | Taxable | Taxable | Taxable | Taxable |
| Manufacturing Machinery | Exempt | Exempt | Partial (differs) | Exempt | Exempt |
| Manufacturing Raw Materials | Exempt | Exempt | Exempt | Exempt | Exempt |
| Business Fuel and Utilities | Exempt | Exempt | Exempt | Exempt | Exempt |
| Business Leases and Rentals | Taxable | Taxable | Taxable | Taxable | Taxable |
| Information Services | Exempt | Exempt | Exempt | Exempt | Taxable (differs) |
| Software as a Service (SaaS) | Exempt | Exempt | Taxable (differs) | Exempt | Taxable (differs) |
| Platform as a Service (PaaS) | Exempt | Exempt | Taxable (differs) | Exempt | Taxable (differs) |
| Digital B2B Products | Exempt | Exempt | Taxable (differs) | Exempt | Taxable (differs) |
| Payroll Services | Exempt | Exempt | Exempt | Exempt | Taxable (differs) |
| Data Center Purchases | Exempt | Taxable (differs) | Exempt | Exempt | Taxable (differs) |
| Digital Advertising Tax | No | No | No | No | No |
Sales Taxes: Consumer Goods and Services in the Base
| Variable | Indiana | Illinois | Kentucky | Michigan | Ohio |
|---|---|---|---|---|---|
| Groceries | Exempt | Alternate Rate (differs) | Exempt | Exempt | Exempt |
| Clothing | Taxable | Taxable | Taxable | Taxable | Taxable |
| Prescription Medication | Exempt | Alternate Rate (differs) | Exempt | Exempt | Exempt |
| Nonprescription Medication | Taxable | Alternate Rate (differs) | Taxable | Taxable | Taxable |
| Gasoline | Exempt | Taxable (differs) | Exempt | Exempt | Exempt |
| Landscaping | Exempt | Exempt | Taxable (differs) | Exempt | Taxable (differs) |
| Repair Services | Exempt | Exempt | Exempt | Exempt | Taxable (differs) |
| Real Estate Services | Exempt | Exempt | Exempt | Exempt | Exempt |
| Parking | Exempt | Taxable (differs) | Taxable (differs) | Exempt | Exempt |
| Dry Cleaning | Exempt | Exempt | Taxable (differs) | Taxable (differs) | Taxable (differs) |
| Fitness Services | Exempt | Exempt | Taxable (differs) | Exempt | Taxable (differs) |
| Barber Services | Exempt | Exempt | Exempt | Exempt | Exempt |
| Veterinary Services | Exempt | Exempt | Taxable (differs) | Exempt | Exempt |
| E-Books | Taxable | Exempt (differs) | Taxable | Exempt (differs) | Taxable |
| Streaming Video | Taxable | Exempt (differs) | Exempt (differs) | Exempt (differs) | Taxable |
| Medical Services | Exempt | Exempt | Exempt | Exempt | Exempt |
| Legal Services | Exempt | Exempt | Exempt | Exempt | Exempt |
| Financial Services | Exempt | Exempt | Exempt | Exempt | Exempt |
| Accounting Services | Exempt | Exempt | Exempt | Exempt | Exempt |
| Sales Tax Holiday | No | Yes (differs) | No | No | Yes (differs) |
Sales Taxes: Sales Tax Structure
| Variable | Indiana | Illinois | Kentucky | Michigan | Ohio |
|---|---|---|---|---|---|
| Uniform Base Definitions | Yes | Yes | Yes | Yes | Yes |
| Unified Tax Administration | Yes | Yes | Yes | Yes | Yes |
| Safe Harbor for Remote Sellers | Gross Sales Threshold | Gross Sales Threshold | Sales or Transactions Threshold (differs) | Sales or Transactions Threshold (differs) | Sales or Transactions Threshold (differs) |
Property Taxes: Property and Capital Stock Tax Rates
| Variable | Indiana | Illinois | Kentucky | Michigan | Ohio |
|---|---|---|---|---|---|
| Property Tax Collections per Capita | $1,487 | $3,016 (differs) | $1,118 (differs) | $1,894 (differs) | $1,688 (differs) |
| Property Tax as a Percentage of Personal Income | 2.32% | 4.04% (differs) | 1.92% (differs) | 2.96% (differs) | 2.61% (differs) |
| Assessment Limit | No | No | No | Yes (differs) | No |
| Levy Limit | Yes | Yes | No (differs) | Yes | Yes |
| Capital Stock Tax Rate | None | 0.1% (differs) | None | None | None |
| Capital Stock Tax Maximum Payment | n.a. | $2,000,000 (differs) | n.a. | n.a. | n.a. |
| Payment Options for Capital Stock and Corporate Income Taxes | n.a. | Pay both (differs) | n.a. | n.a. | n.a. |
Property Taxes: Property Tax Bases
| Variable | Indiana | Illinois | Kentucky | Michigan | Ohio |
|---|---|---|---|---|---|
| Tangible Personal Property Tax | Yes | No (differs) | Yes | Yes | No (differs) |
| Tangible Personal Property De Minimis Exemption | $2,000,000 | n.a. (differs) | $1,000 (differs) | $180,000 (differs) | n.a. (differs) |
| Intangible Property Tax | No | No | Yes (differs) | No | No |
| Inventory Tax | No | No | Yes (differs) | Partial (differs) | No |
| Real Estate Transfer Tax | No | Yes (differs) | Yes (differs) | Yes (differs) | Yes (differs) |
| Split Roll | No | Yes (differs) | No | No | No |
| Split Roll Ratio | 1.00 | 2.50 (differs) | 1.00 | 1.00 | 1.00 |
| Estate Tax | No | 16% (differs) | No | No | No |
| Inheritance Tax | No | No | 16% (differs) | No | No |
| Gift Tax | No | No | No | No | No |
Unemployment Insurance Taxes: UI Tax Rates
| Variable | Indiana | Illinois | Kentucky | Michigan | Ohio |
|---|---|---|---|---|---|
| Minimum Rate | 0.50% | 0.75% (differs) | 0.30% (differs) | 0.06% (differs) | 0.55% (differs) |
| Maximum Rate | 7.40% | 7.05% (differs) | 9.00% (differs) | 12.20% (differs) | 10.25% (differs) |
| Taxable Wage Base | $9,500 | $14,250 (differs) | $12,000 (differs) | $9,500 | $9,000 (differs) |
| Most Favorable Schedule: Minimum Rate | 0.00% | 0.20% (differs) | 0.00% | 0.00% | 0.00% |
| Most Favorable Schedule: Maximum Rate | 5.40% | 6.40% (differs) | 9.00% (differs) | 6.30% (differs) | 6.30% (differs) |
| Least Favorable Schedule: Minimum Rate | 0.75% | 0.20% (differs) | 1.00% (differs) | 0.00% (differs) | 0.30% (differs) |
| Least Favorable Schedule: Maximum Rate | 10.20% | 6.40% (differs) | 10.00% (differs) | 6.30% (differs) | 6.70% (differs) |
| Employer Contributions as a Share of Total Wages | 0.25% | 0.57% (differs) | 0.37% (differs) | 0.47% (differs) | 0.42% (differs) |
| Employer Contributions as a Share of Taxable Wages | 1.32% | 2.80% (differs) | 1.62% (differs) | 2.75% (differs) | 2.44% (differs) |
| Trust Fund Solvency Ratio | 0.77 | 0.23 (differs) | 0.7 (differs) | 0.5 (differs) | 0.43 (differs) |
| New Employer Rate | 2.50% | 2.70% (differs) | 2.70% (differs) | 2.70% (differs) | 2.70% (differs) |
Unemployment Insurance Taxes: Experience Formulas and Charging Methods
| Variable | Indiana | Illinois | Kentucky | Michigan | Ohio |
|---|---|---|---|---|---|
| Experience Formula Based On | Reserve Ratio | Benefits Ratio (differs) | Reserve Ratio | Benefits Ratio (differs) | Reserve Ratio |
| Benefits Charged in Proportion to Base-Period Wages | No (base-period employers in inverse chronological order) | No (most recent or principal employer) (differs) | No (most recent or principal employer) (differs) | Yes (differs) | Yes (differs) |
| Charged If Employee's Benefit Award Is Reversed | No | No | No | Yes (differs) | No |
| Charged for Reimbursements on Combined Wage Claims | No | No | No | No | No |
| Charged If Employee Left Voluntarily | No | No | No | No | No |
| Charged If Employee Was Discharged for Misconduct | No | No | No | No | No |
| Charged If Employee Refused Suitable Work | Yes | No (differs) | No (differs) | No (differs) | No (differs) |
| Charged If Employee Continues to Work Part-Time | No | No | No | No | No |
Unemployment Insurance Taxes: Other UI Base Variables
| Variable | Indiana | Illinois | Kentucky | Michigan | Ohio |
|---|---|---|---|---|---|
| Solvency Tax | No | Yes (differs) | No | Yes (differs) | Yes (differs) |
| Taxes for Socialized Costs or Negative Balance Employers | No | No | No | Yes (differs) | Yes (differs) |
| Loan and Interest Repayment Surtaxes | Yes | No (differs) | Yes | Yes | No (differs) |
| Reserve Taxes | No | No | No | No | No |
| Surtaxes for UI Administration or Non-UI Purposes | No | No | Yes (differs) | No | Yes (differs) |
| Temporary Disability Insurance | No | No | No | No | No |
| Voluntary Contributions | Yes | No (differs) | Yes | Yes | Yes |
| Years to Qualify for Experience Rating | 3 | 3 | 3 | 1 (differs) | 1.5 (differs) |
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About the Authors
Janelle Fritts is a Senior Policy Analyst with the Tax Foundation’s Center for State Tax Policy. She is the lead researcher on the annual State Tax Competitiveness Index and serves as a resource to policymakers in their efforts to modernize and improve the structures of their state tax codes. Her work has been cited in The New York Times, the Associated Press, Bloomberg, and numerous state media outlets across the country.
Jared Walczak is a Senior Fellow at the Tax Foundation, where he spent five years as Vice President of State Projects, and president of Walczak Policy Consulting.
Nicole Fox is a Policy Analyst with the Center for State Tax Policy at the Tax Foundation, where she serves as a resource to policymakers in their efforts to modernize and improve the structure of their state tax codes.
Katherine Loughead is the Vice President of State Tax Policy at the Tax Foundation, where she oversees the state tax policy team’s research agenda and serves as a resource to policymakers in their efforts to modernize and improve the structure of their state tax codes.
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