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.

Income Sales Property Estate Other

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. You can find a list of counties and their tax rates on page two of this document. Sales tax On April 1, 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. Find more on the new law here. Personal and real property taxes Property taxes are imposed on real and personal property in Indiana and are administered by the Department of Local Government Finance. Property is subject to taxation by a variety of taxing units (schools, counties, townships, cities and towns, libraries, etc.), making the total tax rate the sum of the tax rates imposed by all taxing units in which a property is located. In October 2007, Indiana Gov. Mitch Daniels proposed property tax cuts which would be offset by adding a penny to the state sales tax. Find more on the proposal here. 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. 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. In Indiana, aircraft are subject to an aircraft excise tax and registration fee that is in lieu of the ad valorem property tax levied for state or local purposes. Please contact the Indiana Department of Revenue at (317) 232-1497 or check this Web page for applicable forms. This Web page contains a list of Indiana's various taxes and their rates.

Additional information is available at the Indiana Department of Revenue Web site.

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