Taxes in Indiana

Indiana Tax Rates, Collections, and Burdens

How does Indiana’s tax code compare? Indiana has a flat 3.23 percent individual income tax rate. There also are jurisdictions that collect local income taxes. Indiana has a 4.90 percent corporate income tax rate. Indiana has a 7.00 percent state sales tax rate and does not levy any local sales taxes. Indiana’s tax system ranks 9th overall on our 2022 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: How Does Your State Compare?

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

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

Indiana Tackles Throwback Rule and Personal Property Tax

June 30, 2015

Gov. Pence’s Plan Gets it Right on Sales Tax Simplification

February 5, 2015

Taxes in Many States Changing January 1, 2015

December 31, 2014