Tool | January 2018

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.


Add to State Compare List | View List
(0) selected | Compare up to 5

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’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’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


Inheritance and Estate Taxes

Indiana has no estate or inheritance tax.

About our methodology