TAX & LICENSE / STATE TAX SYSTEM

Indiana relies on a number of taxes to generate revenue and provide quality services for all residents. In addition to the state income tax, some counties impose either a County Option Tax or County Income Tax on residents and nonresidents whose principal place of employment is within the county. The county may also impose an Economic Development Tax. The rates on all of these county-level taxes vary and not all counties participate. In addition to the following list of state taxes, Indiana imposes a number of miscellaneous or special taxes. For complete information on taxes in Indiana, contact:

Department of Revenue
800-457-8283
www.in.gov/dor

 

Frequently Called Numbers

Aircraft License Excise Taxes
317-615-2544

Individual Income Tax
317-232-2240

Inheritance Tax          
317-232-2154

Motor Vehicle Excise Tax       
317-615-2710

Sales Tax
317-233-4015

Tax Forms & Publications

By Phone        
317-615-2581

 

MAJOR INDIANA TAXES

Individual State Income Tax
Indiana imposes a rate of 3.4 percent on the federal adjusted gross income. The state allows numerous “add-backs” or credits for individual residents, partners, and nonresidents with Indiana income sources.

 

Sales and Use Tax
The state imposes a 6 percent tax on purchases of tangible personal property, public utility service and some renter transactions is collected at the retail. This includes gasoline, collected at the wholesale level.

 

Estate Tax
Taxes are based on the difference between the State Death Tax Credit allowed at the federal level and the amount paid in state inheritance tax.

 

Food and Beverage Tax
Tax of 1 percent of retail sales price is determined locally for purchases of food and beverages.

 

Inheritance Tax
Taxes are based on the taxpayer’s class (transferee’s relationship to deceased) and residency status, the property’s taxable value, and sites of real and tangible property and intangible property.

 

Marion County Admission Tax
Specific taxes are applied to the RCA Dome, Victory Field, and Conseco Fieldhouse in Indianapolis for any sporting event at a rate of 5 percent of the admission.

Online Resources

Electronic Services
www.in.gov/dor/epay

Tax Forms
www.in.gov/dor/3489.htm

 

Property Tax Information
Property taxes are the primary source of revenue for local governments in Indiana. The taxpayer owes the government the tax rate multiplied by the assessed value of the property. The state government collects a very small part of the property tax, at a rate of one cent per $100 assessed value. The property tax is administered on the state level by the State Board of Tax Commissioners or the Department of Local Government Finance, and on the local level by the county and township assessors. For answers to specific questions on property taxes, contact:

County Assessors

Boone 765-482-0140
http://boonecounty.in.gov/Offices/Assessor

Hamilton 317-776-9617
www.hamiltoncounty.in.gov/404/Assessors-Office

Hancock 317-477-1102
www.hancockcoingov.org

Hendricks 317-745-9207
www.co.hendricks.in.us

Johnson 317-346-4701
www.co.johnson.in.us

Madison 765-641-9401
http://madisoncty.com/CountyAssessor.html

Marion 317-327-4907
www.indygov.org/assessor

Morgan 765-342-1065
www.morgancounty.in.gov/government/assessor

Shelby 317-392-6305
www.co.shelby.in.us/Assessor.aspx