Taxation in Indiana

Updated on Friday 10th August 2018

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Having an idea about the tax regime in Indiana will help foreign investors decide on the business type and activities they will perform in this state. The tax benefits in Indiana are linked to the fact that there is no privilege tax and no franchise tax, letting foreign entrepreneurs concentrate on their investments and opportunities. Our company formation agents in USA are at the disposal of business persons who want to open a company in USA and who want to find out more details about the taxes they need to pay.

What is the income tax rate in Indiana?

Corporations in Indiana are levied on the gross income at flat rates that will decrease each year until 2021, as seen in the table below:
Date Tax Rate
July 1, 2017 – June 30, 2018 6%
July 1, 2018 – June 30, 2019 5.75%
July 1, 2019 – June 30, 2020 5.5%
July 1, 2020 – June 30, 2021  5.25%
Starting with June 30, 2021 4.9%

What is the sales tax rate in Indiana?

Indiana imposes a sales tax of 7% for goods and services for sale purposes. It is good to know that municipalities in Indiana do not impose their own city sales tax, meaning that the flat rate of 7% will suffer no modifications.

Our general guide to company incorporation in Indiana is at your disposal with information and guidelines about how you can set up a business in this state. If you want to start a company in USA, we invite you to talk to our team of advisors for complete support.

Taxes for LLCs in Indiana

The limited liability companies in Indiana are preferred structures for businesses which are subject to varied tax rules. For instance, the incomes of an LLC are distributed individually to the members that formed this type of company who will have to pay the state's personal income tax of 3.23% imposed on the federal adjusted gross income.

Tax facts for Indiana

The personal income tax in Indiana is set at 3.23% and it is payable by all residents in this state. Besides this rate, counties in Indiana have their own income taxes ranging from 0.35% to 3.38%. There is no estate tax in Indiana and the inheritance tax was abolished in January 2013, with the mention that citizens in Indiana can claim this tax if paid before 2013. 

Please feel free to contact our team of company incorporation specialists in USA to find out complete information about the taxes you need to pay in Indiana.