The Kiplinger Tax Map: Guide to State Income Taxes, State Sales Taxes, Gas Taxes, Sin Taxes
Tool | Updated October 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.


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The Bottom Line
Map of Indiana

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 an average levy of 1.56%. 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 as high as 3.38% (Pulaski County). The average is 1.56%, according to the Tax Foundation.

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 $126,500 is $1,100.

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
Snuff: $0.40/ounce.
Other tobacco products: 24% of wholesale price

Beer: $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.

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