- Statewide: 7.0%
- Counties cannot levy an additional sales tax.
- Common Exceptions at State Level:
- Prescription Medicine: Exempt
- Unprepared Foods: Exempt
- Prepared Foods: 9%
- Gasoline Tax: 68.19 cents/gallon (Includes all state, local, and federal taxes)
- Diesel Fuel Tax: 78.40 cents/gallon (Includes all state, local, and federal taxes)
Personal Income Tax
- Personal Income Tax Rate Range: 3.15%
- Standard deduction: None
- Personal Exemption Allowance: $1,000. Dependent Exemption: $1,000 (may be able to take an additional $1,500 for certain dependents. Age 65 and over or blind: $1,000)
- Itemized Deductions Allowed?: Generally not allowed
- State allows county- and city-level income tax.
- Retirement Income
- Social Security: Exempt
- IRAs: Taxable at ordinary income tax rates
- 401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates
- Private pensions: Taxable at ordinary income tax rates
- Public Pensions: Taxable at ordinary income tax rates except federal pensions for taxpayers 62 and older who may deduct $16,000 from Adjusted Gross Income less Social Security
- Military Pay
- Active Duty Pay: Up to $5,000 exempt. Remainder taxable to the extent included in federal AGI. All military pay exempt as of July 1, 2023 (Source).
- Military Retirement Pay: Exempt.
- Military Disability Pay: Exempt
- VA Disability Dependency & Indemnity Compensation Benefits: Exempt
- SBP/SSBP/RCSBP/RSFPP: Exempt
- Local municipalities average .83% of the property's assessed value.
- Calculation of assessed value: 100% of fair market value.
- Relief programs for:
- Owner-occupied: Can exempt the lesser of 60% of assessed value or $45,800; supplemental deduction of 25% to 35% available.
- 65 and over: Can exempt the lesser of half of assessed value or $14,000 if income less than $30,000 ($40,000 for married filing jointly) and assessed value is under $240,000.
- 65 and over Freeze: Assessed value cannot increase more than 2% if income less than $30,000 ($40,000 for married filing jointly) and assessed value is under $240,000.
- Disabled Veterans/Surviving Spouse: Can exempt up to $24,960 of assessed value if has service-connected disability of at least 10% and served in war (World War Isurviving spouse: $18,720).
- Totally Disabled Veteran or Veteran 62 or over with service-connected disability of 10% or more: Up to $14,000 can be exempt.
- Blind/Disabled: Can exempt $12,480 of assessed value if income less than $17,000.
- Personal Property Tax: Yes. Rates and exemptions vary.
Inheritance & Estate Taxes: None
Department of Revenue website: www.in.gov/dor