Personal income tax
Indiana collects from its residents a flat tax of 3.4 percent of federal adjusted gross income with modification.
Indiana tax returns are due 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.
On 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 taxes
Property 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 taxes
An 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 facts
Qualified 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.