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

$986

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State and Local Tax Burden

9.5%

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Tax Freedom Day

April 9

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Top Corporate Income Tax Rate

5.75%

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State Business Tax Climate Index Ranking

10

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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

$1133

State Gasoline Tax Rate (cents per gallon)

42.9¢

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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

0.82%

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State and Local Property Tax Collections Per Capita

$967

Featured Articles

Tax Trends at the Dawn of 2020

January 6, 2020

Local Income Taxes in 2019

July 30, 2019

State Tax Changes as of July 1, 2019

July 11, 2019

2019 State Business Tax Climate Index

September 26, 2018

Help from Our Friends: What States Can Learn from Tax Reform Experiences across the Country

May 15, 2018

Six Thoughts About the Carrier Deal

December 1, 2016

Related Articles

Tax Trends at the Dawn of 2020

January 6, 2020

Local Income Taxes in 2019

July 30, 2019

State Tax Changes as of July 1, 2019

July 11, 2019

Indiana Chips Away at Tangible Personal Property Taxes

April 5, 2019

Facts and Figures 2019: How Does Your State Compare?

March 19, 2019

Results of 2018 State and Local Tax Ballot Initiatives

November 6, 2018

Top State Tax Ballot Initiatives to Watch in 2018

October 22, 2018

2019 State Business Tax Climate Index

September 26, 2018

State Tax Changes Taking Effect July 1, 2018

June 26, 2018

Indiana Passes Conformity Bill in One-Day Special Session

May 22, 2018

Is Every Tax Cut Kansas?

May 16, 2018

Help from Our Friends: What States Can Learn from Tax Reform Experiences across the Country

May 15, 2018

State Tax Changes Taking Effect July 1, 2017

June 27, 2017

Indiana Gas Tax Proposal: Existing User Taxes & Fees Cover Less than Half of Road Costs

January 11, 2017

Several States Will Start 2017 with Corporate Tax Reductions

December 30, 2016

Six Thoughts About the Carrier Deal

December 1, 2016

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