State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families. Go to the Kiplinger Tax Map Indiana Add to State Compare List | View List View State Compare List (0) selected | Compare up to 5 The Bottom Line Not Tax-Friendly The Hoosier State dropped its flat income tax a smidge in 2017, from 3.3% to 3.23%. But many counties in Indiana also impose their own income taxes, with levies between 0.35% and 3.38%. The state's general sales tax is high, though municipalities don't get to add to it. Income Tax Range Indiana has a flat rate of 3.23% of state adjusted gross income after modifications. Counties also levy income taxes. Sales Tax 7% state levy. No local taxes.Groceries: ExemptClothing: TaxableMotor Vehicles: TaxablePrescription Drugs: Exempt Real Property Taxes In Indiana, the median property tax rate is $810 per $100,000 of assessed home value. Motor Fuel Taxes Gasoline: 42.16¢ per gallon. Diesel: 52¢ per gallon. Sin Taxes Cigarettes: $1 per packSnuff: $0.40 per ounceOther tobacco products: 24% of wholesale priceBeer: $0.12 per gallonWine: $0.47 per gallonLiquor: $2.68 per gallon Annual Car Taxes and Fees An annual vehicle excise tax based on a car's sticker price (MSRP) and age is imposed. Estate and Inheritance Taxes No estate or inheritance tax.