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Below is a snapshot of key features of Indiana's tax system. (Scroll Down)
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State & Local Revenue (FY08)
- General Revenue, Own-Source (GROS): $35.7 billion
- General Revenue as a Share of Income: 16.4%
- Tax Revenue: $23 billion
- Tax Revenue as Share of income: 10.6%
- Personal Income Tax (Share of Tax Revenue): 23.5% (27 out of 51)
- Corporate Income Tax (Share of Tax Revenue): 4% (23 out of 51)
- Sales & Excise Tax (Share of Tax Revenue): 37% (20 out of 51)
- Property Tax (Share of Tax Revenue): 30.2% (26 out of 51)
- Other Taxes (Share of Tax Revenue): 4.2% (17 out of 51)
Personal Income Tax Features (2011)
- Range of Tax Rates: 3.4%
- Standard Deduction: None
- Personal Exemption: $1,000
- Dependent Exemption: $1,000
- Earned Income Tax Credit (EITC): 9% Refundable
- Flat income tax rate structure
Corporate Income Tax Features (2011)
- Range of Tax Rates: 8.50%
- Income Level at Which Top Rate Applies: All
- Combined Reporting: No
- Apportionment Factor (Payroll): 0%
- Apportionment Factor (Property): 0%
- Apportionment Factor (Sales): 100%
Sales Tax Features (2011)
- 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
- Streamlined Sales Tax Membership: Full
- Vendor Compensation available without ceiling
- State sales tax applies to gasoline
Property Tax Features (2011)
- Property taxes capped at 1%, 2%, or 3% of assessed value, depending on type of property
- Provides one of the largest property tax homestead exemptions in the country
- Offers income tax credit equal to 5% of property taxes paid
Other Tax & Revenue Features (2011)
- Gasoline Tax Rate (per gallon): $0.436
- Diesel Tax Rate (per gallon): $0.521
- Cigarette Tax Rate (per pack): $0.995
- Estate or Inheritance Tax: Yes
- Net Lottery Sales Per Capita: $120
Tax Policy Oversight
- Tax Expenditure Report: One-time release only
- Tax Incidence Analysis Capability: None
Last Updated August 25, 2011
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