Taxes » State Tax Rates » IndianaIndiana's state tax rate is a flat 3.4 percent of a taxpayer's federal adjusted gross income. Counties also assess separate income taxes. More on Indiana taxes can be found in the tabbed pages below.IncomeSalesPropertyEstateOtherPersonal income taxIndiana collects from its residents a flat tax of 3.4 percent of federal adjusted gross income with modification.Indiana tax returns are due on April 15, or the next business day if that date falls on a weekend or holiday.Most Indiana counties also collect income tax. The state of Indiana's Department of Revenue releases a list of counties and their tax rates.Sales taxesOn April 1, 2008, Indiana's state sales tax rate increased to 7 percent.The increase, the first since 2002, was due to the addition of a penny to the state sales tax to offset property tax cuts.Personal and real property taxesProperty taxes are administered at the local level with oversight by the Indiana Department of Local Government Finance.The Department of Local Government Finance has developed summaries to provide taxpayers information about property taxes in their counties. Each county summary provides a property tax breakdown and shows the shift of property tax burden between property classes. Additionally, the summaries break down where each property tax dollar goes, show comparisons of local spending by unit and list recent debt issued by unit.Inheritance and estate taxesAn inheritance tax return, IH-6, must be filed by an estate's personal representative within nine months of an Indiana resident's death. The return is not required if the amount left to an heir is less than the allowable exemption, which ranges from the entire estate, if left to a spouse or charitable organization, to $100 for other beneficiaries.Indiana does not collect an estate tax. Other Indiana tax factsQualified Indiana taxpayers can file state returns at I-File, the Indiana Department of Revenue's free Web-based tax filing service.Indiana law requires the Revenue Department to post online all businesses whose registered retail merchant certificates have expired due to nonpayment of delinquent sales tax.A list of Indiana's various taxes and their rates can be found on the Indiana Department of Revenue website. Additional information is available at the Indiana Department of Revenue website.To download tax forms on this site, you will need to install a free copy of Adobe Acrobat Reader. Click here for instructions. advertisementRelated Links:New rules to report capital gains, lossesTax breaks for the unemployedTax breaks dead until Congress revives themRelated Articles:10 tax law changes to knowDeducting job-search costsMortgage loan tax breaks
Indiana's state tax rate is a flat 3.4 percent of a taxpayer's federal adjusted gross income. Counties also assess separate income taxes. More on Indiana taxes can be found in the tabbed pages below.
To download tax forms on this site, you will need to install a free copy of Adobe Acrobat Reader. Click here for instructions.