Indiana (IN) Tax Rates — 2026

Income Tax

Type: Flat rate — 3.05% on all taxable income

Standard Deduction: N/A (uses personal exemptions or credits instead)

Sales Tax

Groceries: Exempt

+0.43% vs national avg

Property Tax

-0.28% vs national avg (1.07%)

Retirement Income Tax

Estate & Inheritance Tax

Has Estate Tax: NO

Corporate Tax

Corporate Income Tax Rate: 4.9%

Additional Notes

Indiana has a flat income tax rate of 3.05%, scheduled to decrease further. Uses personal exemptions rather than a standard deduction. Counties impose additional local income taxes (0.5%-2.9%).