Indiana
What's New
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blog
September 29, 2017Indiana’s Tax Cuts Under Mike Pence Are Not a Model for the Nation
In announcing a new tax cut framework this week in Indianapolis that was negotiated with House and Senate leaders, President Trump claimed that “Indiana is a tremendous example of the…
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ITEP Work in Action
August 15, 2017Indiana Institute for Working Families: Trump Tax Plan Would Shortchange Indiana, Middle Class & Working Families (But Would Let Them Eat Cake)
A new analysis of the Trump tax plan from the Institute for Taxation and Economic Policy shows that Indiana would only get an 87% share of tax cuts relative to…
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blog
May 17, 2017Investors and Corporations Would Profit from a Federal Private School Voucher Tax Credit
A new report by the Institute on Taxation and Economic Policy (ITEP) and AASA, the School Superintendents Association, details how tax subsidies that funnel money toward private schools are being…
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report
May 17, 2017Public Loss Private Gain: How School Voucher Tax Shelters Undermine Public Education
One of the most important functions of government is to maintain a high-quality public education system. In many states, however, this objective is being undermined by tax policies that redirect… -
ITEP Work in Action
January 9, 2017Indiana Institute for Working Families: Tax Rate Cuts to Offset Gas and Cigarette Tax Increases? There are Better Ways
Ensuring Indiana has funding needed to adequately repair its roads and bridges over the next several years is a top priority among lawmakers this legislative session. Among the proposed… -
ITEP Work in Action
January 20, 2015Indiana Institute for Working Families: The Status of Working Families in Indiana – 2015
The Status of Working Families is a biennial report that analyzes the general state of Indiana’s economy as it relates to working families by examining data on poverty, labor force…
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ITEP Work in Action
March 18, 2014Indiana Institute for Working Families: What Corporate Tax Burden
On the immediate heels of significantly cutting taxes for corporations and high income individuals, lawmakers are close to making a deal to deliver additional tax breaks to some businesses including… -
report
April 26, 20135% Cut in Indiana’s Income Tax is Stacked in Favor of the Wealthy
Indiana Governor Mike Pence and the state's legislative leaders recently announced a budget agreement that, among other things, phases the state's flat personal income tax rate down from 3.4 percent… -
report
April 8, 2013Indiana Senate’s Income Tax Cut: Just as Lopsided as the Governor’s
The Indiana Senate Appropriations Committee recently approved a budget cutting the state's personal income tax rate from 3.4 percent to 3.3 percent beginning in 2015. Although this proposal costs less…
By the Numbers
| Personal Income Tax Features (2015) | |
|---|---|
| Range of Tax Rates | 3.3% |
| Standard Deduction |
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| Personal Exemption | $1,000 |
| Dependent Exemption | $1,000 |
| Earned Income Tax Credit (EITC) | 9% Refundable |
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| Corporate Income Tax Features (2015) | |
|---|---|
| Range of Tax Rates | Offers low-income credit designed to offset personal income taxes for elderly taxpayers |
| Income Level at Which Top Rate Applies | Deduction for up to $2,500 of residential property taxes or $3,000 of rent paid |
| Combined Reporting | 7.0%, dropping to 6.5% on July 1, 2015 |
| Apportionment Factor (Payroll) | All |
| Apportionment Factor (Property) | No |
| Apportionment Factor (Sales) | 0% |
| Sales Tax Features (2015) | |
|---|---|
| State Sales Tax Rate | 7.00% |
| Average Local Sales Tax Rate | N/A |
| Average Combined State & Local Sales Tax Rate | 7.00% |
| State Sales Tax Treatment of Groceries | Exempt |
| Local Sales Tax Treatment of Groceries | N/A |
| Number of Services Taxed | 24 out of 168 surveyed (2007) |
| Streamlined Sales Tax Membership | Full |
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| Property Tax Features (2015) | |
|---|---|
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| Other Tax & Revenue Features (2015) | |
|---|---|
| Gasoline Tax Rate (per gallon) | $0.299 |
| Diesel Tax Rate (per gallon) | $0.498 |
| Cigarette Tax Rate (per pack) | $0.995 |
| Estate or Inheritance Tax | No |
| Net Lottery Sales Per Capita | $106 (2010) |
| Tax Policy Oversight | |
|---|---|
| Tax Expenditure Report | One-time release only |
| Tax Incidence Analysis Capability | None |
Last updated January 13, 2015
RESOURCES
State Tax & Revenue Information
- Indiana Department of Revenue
- Indiana State Budget Agency
- Indiana Department of Local Government Finance
- Indiana General Assembly - Handbook of Taxes, Revenues, and Appropriations
- Indiana General Assembly - Fiscal Reports
- Indiana General Assembly - Property Tax Studies
- Purdue University - Indiana Local Government Information