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?

Related Articles

Indiana’s 2014 Tax Package Continues State’s Pattern of Year-Over-Year Improvements

April 7, 2014

Indiana House and Senate Pass Business Personal Property Tax Reform

January 31, 2014

Fiscal Times Features Best and Worst States for Taxes

January 29, 2014

Indiana House Unanimously Approves Incentive Study Commission

January 24, 2014

Examining the Indiana Business Personal Property Tax

January 15, 2014

Should Nebraska Follow the Example of Illinois or Indiana?

January 10, 2014

Indiana Senate Tax Reform Proposal Would Improve Business Tax Climate Ranking

January 9, 2014

2013 Outstanding Achievement in State Tax Reform

January 7, 2014

Indiana’s Gov. Pence Proposes Business Personal Property Tax Phase Out

December 20, 2013

Tax Foundation’s Scott Drenkard Testifies on Tax Credits in Indiana

November 20, 2013

Are Tax Incentives Part of a Competitive Tax Code? Testimony before the Indiana Commission on State Tax and Financing Policy

November 18, 2013

Taxes and Economic Outcomes: Indiana and Wyoming Edition

October 11, 2013

Lessons from the Indiana Toll Road

June 26, 2013

Indiana Retroactively Reinstates Local Income Taxes, Over Governor’s Veto

June 13, 2013

Indiana Approves Income Tax Reduction

May 14, 2013

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