Tool | August 2016

State-by-State Guide to Taxes

Compare state tax rates and rules -- on income, ordinary purchases, gas, "sin" products, property, and more -- across the U.S.

Indiana

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The Bottom Line
Map of Indiana

Mixed Tax Picture

The Hoosier State taxes income at a flat rate of 3.3% (and it’s going lower), but many counties in Indiana also impose their own income taxes. The state sales tax is high.

Sales Tax

State levy of 7%. No local taxes.

Income Tax Range

The Hoosier State taxes income at a flat rate of 3.3% (it will drop to 3.23% in 2017), but counties levy their own income taxes, at rates ranging from 0.2% (Vermillion County) to 3.38% (Pulaski County).

See Kiplinger.com’s Retiree Tax Map to learn how Indiana taxes Social Security income and other forms of retirement income.

Motor Fuel Taxes

Gasoline: $0.32.
Diesel: $0.40.

Property Taxes

The median property tax on Indiana's median home value of $124,300 is $1,081.

See Kiplinger.com’s Retiree Tax Map for details on tax breaks for seniors in Indiana.

Vehicle Taxes

Sales tax is due on purchases. An annual excise tax is also levied , based on a car’s original MSRP and discounted for age. The amount due on a three-year old car that cost $20,000 would be $189.

Sin Taxes

Cigarettes: $1.00 per pack
Other tobacco products: 24% of wholesale price

Beer, flavored malt beverages and hard cider: $0.12 per gallon
Wine: $0.47 per gallon
Liquor: $2.68 per gallon

Travel Taxes

Hotel: There’s no statewide lodging tax, but localities can levy one. Rates are as high as 10% (Indianapolis). Sales tax is also charged.

Rental cars: 4% auto rental excise tax. Marion County (Indianapolis) adds another 6%. Sales tax is also due.

Taxes On Wireless Service

11.1%

Inheritance and Estate Taxes

Indiana has no estate or inheritance tax.

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