State taxes: Indiana


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Overview of Indiana Taxes

The Indiana state tax rate is currently 3.3% of a taxpayer’s federal adjusted gross income. However, the income tax rate may be more than 6% in some counties. 91 out of 92 counties levy their own taxes, which range from 0.1% to 3.13%, in addition to the 3.3% state rate. More on Indiana taxes can be found in the tabbed pages below.

Personal income tax

Indiana collects from its residents a flat tax of 3.3% 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.

Sales taxes

On April 1, 2008, Indiana’s state sales tax rate increased to 7%.

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 with 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

Legislation enacted in 2013 retroactively repealed Indiana’s inheritance tax effective Jan. 1, 2013. The law also established a procedure for inheritance tax refund claims, which can be made by filing Form IH-5 with the Indiana Department of Revenue.

Indiana does not collect an estate tax.

Other Indiana tax facts

Qualified Indiana taxpayers can file state returns at INfreefile, 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 on the Indiana Department of Revenue website.

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