Indiana

What's New



By the Numbers

Personal Income Tax Features
Range of Tax Rates 3.3%
Standard Deduction
  • None
  • Personal Exemption $1,000
    Dependent Exemption $1,000
    Earned Income Tax Credit (EITC) 9% Refundable
  • Flat income tax rate scheduled to fall to 3.23% in 2017
  • Offers low-income credit designed to offset personal income taxes for elderly taxpayers
  • Deduction for up to $2,500 of residential property taxes or $3,000 of rent paid
  • Corporate Income Tax Features
    Range of Tax Rates Offers low-income credit designed to offset personal income taxes for elderly taxpayers
    Income Level at Which Top Rate Applies Deduction for up to $2,500 of residential property taxes or $3,000 of rent paid
    Combined Reporting 7.0%, dropping to 6.5% on July 1, 2015
    Apportionment Factor (Payroll) All
    Apportionment Factor (Property) No
    Apportionment Factor (Sales) 0%
    Sales Tax Features
    State Sales Tax Rate 7.00%
    Average Local Sales Tax Rate N/A
    Average Combined State & Local Sales Tax Rate 7.00%
    State Sales Tax Treatment of Groceries Exempt
    Local Sales Tax Treatment of Groceries N/A
    Number of Services Taxed 24 out of 168 surveyed (2007)
    Streamlined Sales Tax Membership Full
  • Vendor Compensation available without ceiling
  • State sales tax applies to gasoline
  • Sales tax applies to digital goods and services
  • Property Tax Features
  • Property taxes capped at 1%, 2%, or 3% of assessed value, depending on type of property
  • Provides one of the largest property tax homestead exemptions in the country
  • Offers income tax credit equal to 5% of property taxes paid
  • Other Tax & Revenue Features
    Gasoline Tax Rate (per gallon) $0.299
    Diesel Tax Rate (per gallon) $0.498
    Cigarette Tax Rate (per pack) $0.995
    Estate or Inheritance Tax No
    Net Lottery Sales Per Capita $106 (2010)
    Tax Policy Oversight
    Tax Expenditure Report One-time release only
    Tax Incidence Analysis Capability None

    Last updated January 13, 2015