- 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)
- Cigarette Tax: .995 cents/pack of 20
Personal Income Tax
- Personal Income Tax Rate Range: 3.23%
- Standard deduction: None
- Personal Exemption Allowance: $1,000. Dependent Exemption: $1,000 (may take an additional $1,500 if dependents meet certain conditions)
- 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
- Military Retirement Pay: Up to $6,250 exempt if 60 and over (plus 75% in 2021); new law will phase in an exemption that will be 100% for taxable years beginning with 2022 tax year.
- Military Disability Pay: Exempt
- VA Disability Dependency & Indemnity Compensation Benefits: Exempt
- SBP/SSBP/RCSBP/RSFPP: Up to $6,250 exempt (plus 75% in 2021). Fully exempt beginning with 2022 tax year.
- Local municipalities average .85% 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 $45,000; supplemental deduction available.
- 65 and over: Can exempt the lesser of half of assessed value or $14,000 on house value of less than $200,000 if income less than $30,000
- 65 and over Freeze: Assessed value cannot increase more than 2% if income less than $30,000
- Disabled Veterans/Surviving Spouse (not remarried): Can exempt up to $24,960 of assessed value if meet certain requirements (WWI surviving spouse: $18,720)
- 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