Indiana Tax Overview
Indiana has one of the lowest flat income tax rates in the country at 3.05%, scheduled to decrease further in coming years. However, Indiana counties also levy their own income taxes ranging from 0.5% to 2.9%, which can significantly increase the total tax burden. The state offers a relatively low cost of living and moderate property taxes.
Indiana Tax Quick Facts (2026)
| Income Tax | flat (top rate: 3.0%) |
| Sales Tax (State) | 7.00% |
| Property Tax (Avg Effective) | 0.79% |
| Median Household Income | $63,660 |
| Capital | Indianapolis |
| Population | 6.9 million |
Frequently Asked Questions About Indiana Taxes
Does Indiana have a state income tax?+
Yes, Indiana has a flat income tax system with a top marginal rate of 3.0%.
What is the property tax rate in Indiana?+
The average effective property tax rate in Indiana is approximately 0.79% of assessed home value. On a $300,000 home, that is about $2,370 per year.
What is the sales tax rate in Indiana?+
The state sales tax rate in Indiana is 7.00%. Local jurisdictions may add additional sales tax.
What is the median household income in Indiana?+
The median household income in Indiana is approximately $63,660 per year.
How does Indiana's tax burden compare to other states?+
Indiana's total tax burden depends on income tax, property tax, and sales tax combined. Use the calculator above to compare your specific situation.
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James Whitfield, CPA, MST
James Whitfield is a Certified Public Accountant with a Master of Science in Taxation. He specializes in US federal and state tax calculations and ensures all tax-related tools meet current IRS guidelines. Last updated: April 2026. Uses 2026 tax year data from state revenue departments and IRS publications.