Indiana Income Tax Rate 2025
Indiana has a flat income tax rate of 3.05% on adjusted gross income. Indiana's rate is among the lowest flat rates of any state, and the state has been gradually reducing it from 3.23% as part of a multi-year plan.
Tax Type
Flat Rate
Income Tax Rate
3.05%
Tax Brackets
1 (flat)
How It Works
With a flat tax, your Indiana state income tax is simply 3.05% of your adjusted gross income after applicable deductions. Indiana is notable for also having county-level income taxes that range from 0.5% to 2.864%, which are added on top of the state rate. Your total Indiana income tax depends on which county you reside in.
Indiana exempts Social Security benefits from state income tax. The state sales tax rate is 7%, which is one of the higher rates in the country. Indiana uses federal adjusted gross income as the starting point for state tax calculations.