Taxes in Indiana

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 rank?  Below, we have highlighted a number of tax rates, ranks, and measures detailing Indiana’s income tax, business tax, sales tax, and property tax systems. Click the tabs below to explore!

Top Individual Income Tax Rate

3.23%

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State and Local Individual Income Tax Collections per Capita

$975

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State and Local Tax Burden

9.5%

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Tax Freedom Day

April 17

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Top Corporate Income Tax Rate

6.00%

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State Business Tax Climate Index Ranking

9

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State Sales Tax Rate

7%

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Combined State and Average Local Sales Tax Rate

7.00%

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State and Local General Sales Tax Collections per Capita

$1100

State Gasoline Tax Rate (cents per gallon)

41.9¢

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State Cigarette Tax Rate (dollars per 20-pack)

$0.995

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Property Taxes Paid as a Percentage of Owner-Occupied Housing Value

0.87%

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State and Local Property Tax Collections Per Capita

$975

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Lunch Links: Mnuchin Promises Tax Reform within First 90 Days of Trump Administration; Chopping Itemized Deductions Not Panacea in Trump Tax Plan; Massachusetts Latest State to Consider Soda Tax

December 1, 2016

Lunch Links: Mnuchin as Treasury Secretary Favors Tax Reform; Trump-Pence Negotiate to Keep Carrier Jobs in Indiana; States Planning Projects for Infrastructure Funding in New Administration

November 30, 2016

Lunch Links: Not So Sweet Soda Taxes Have Multi-City Appeal; Trump Includes Tax Reform in Efforts to Keep Carrier from Bolting; Christie Cites ‘Blood Money’ Tax Revenue in Shunning Marijuana Legalization for N.J.

November 28, 2016

Lunch Links: Debating Small, Progressive Taxes vs. Larger, Less Progressive; More Blowback on Brownback’s Kansas Tax Policy; Plea Agreement Reached by Tax Court Judge

October 25, 2016

Lunch Links: New Jersey Lawmakers Set to Vote on Gas Tax Hike; Tax Experts Weigh in on Trump’s Reported Losses; Kansas Shortfall Extended

October 4, 2016

2017 State Business Tax Climate Index Released Today!

September 28, 2016

Lunch Links: Republican VP Candidate Pence Releases Tax Returns; Germany’s Finance Minister Calls for European Tax Cuts; Philadelphia Downgraded by Moody’s for Perilously Low Cash Fund Balances

September 12, 2016

Lunch Links: Trump Takes Hits from Clinton (Release Tax Returns) and Forbes (Troublesome Pass-Through Rate Reduction); NCSL Calls on Congress for Marijuana Reforms

August 11, 2016

Lunch Links: Indiana Surplus; New Pennsylvania Taxes Begin; Virginia County Cracking Down on Car Tax Avoidance

August 1, 2016

Lunch Links: Boring Tax Decrees and Ancient Egypt; 40% E-Cig Tax in Pennsylvania; Mississippi Tax Reform Effort Launched

July 15, 2016

State Tax Changes Taking Effect July 1, 2016

June 30, 2016

Lunch Links: Congressman Beats State Tax Commission; Rhode Island Revelations; Paying Property Taxes with $1 Bills

June 16, 2016