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. 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?

Indiana Budget Includes Income Tax Reduction

February 12, 2013

Indiana’s State and Local Tax Burden

October 23, 2012

The Wacky World of Business Inputs Taxation: Indiana Edition

June 11, 2012

Taxpayers Win One in Ohio, Lose One in Indiana

June 5, 2012

Indiana: Indy 500 Race Car Engines Exempt from Sales Tax; Tires Are Not

April 24, 2012

Indiana Legislature Approves Plan to Eliminate Inheritance Tax

March 13, 2012

Supreme Court Hears Challenge to Arbitrary Tax Refund Policy

March 1, 2012

Taxpayers Who Pay a Cancelled Tax Should Get Refunds: Armour v. City of Indianapolis

January 5, 2012

Tennessee Looks for Ways to Increase Lottery Revenue

October 7, 2011

Tax Foundation Legal Brief: Taxpayers Who Pay a Cancelled Tax Should Get Refunds

September 12, 2011

Indiana Department of Revenue Rivals the Ministry of Silly Procedures in Tax Refund Case

July 11, 2011

Mitch Daniels Sets the Example

May 17, 2011

Tax Competition Alive and Well in the Midwest

May 13, 2011

Indiana Approves Tax Changes, Including Corporate Tax Rate Reduction

May 2, 2011

Tax Foundation Experts Testifying in California, Indiana, and Minnesota

January 31, 2011

Arizona Joins Corporate Tax Cut Parade

January 19, 2011

Today is Tax Freedom Day for Oklahoma, Indiana and New Hampshire

April 6, 2010

Indiana Gov. Daniels and Balancing the State Budget

February 24, 2010

Who Really Wins the Indiana Lottery?

August 7, 2009

Some States Approve Last Minute Budgets

July 1, 2009