Tool | October 2017

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

Tax Friendly

The Hoosier State dropped its flat income tax a hair in 2017, from 3.3% to 3.23%, but many counties in Indiana also impose their own income taxes. The state sales tax is high, though municipalities don't get to add to it.

Sales Tax

State levy of 7%.

Income Tax Range

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

Effective income tax rate: 3.3%/individual, 5.1%/joint (Calculated using Indianapolis as domicile)

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: $0.42.
Diesel: $0.48.

Property Taxes

The median property tax on Indiana's median home value of $124,200 is $1,085.

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

11.22%

Inheritance and Estate Taxes

Indiana has no estate or inheritance tax.

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