Indiana Taxes 2025
Complete tax guide and OBBBA calculator for IN residents
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Indiana Tax Overview 2025
State Income Tax
3.15%
Flat rate structure
Combined Sales Tax
7.00%
State 7.00% + Local 0.00%
Avg Property Tax
0.85%
Near-average property taxes
💼 Indiana Income Tax 2025
Indiana has a flat income tax rate of 3.15%, plus local taxes.
When filing your Indiana state tax return, your income tax liability depends on your taxable income and filing status. Indiana uses a flat income tax structure.
Indiana Income Tax Quick Facts
🛒 Indiana Sales Tax 2025
Indiana's combined average sales tax rate is 7.00%, which includes both state and local components. The state sales tax rate is 7.00%, while local jurisdictions add an average of 0.00%.
Sales Tax Breakdown
💡 Tip: Local sales tax rates vary by city and county. Your actual rate may be higher or lower depending on where you shop.
🏠 Indiana Property Tax 2025
Indiana's average effective property tax rate is 0.85%. Near-average property taxes.
Property taxes in Indiana are assessed at the local level by counties and municipalities. Rates can vary significantly between jurisdictions.
Example Annual Property Tax
| Home Value | Est. Annual Tax | Monthly |
|---|---|---|
| $250,000 | $2,125 | $177 |
| $400,000 | $3,400 | $283 |
| $600,000 | $5,100 | $425 |
OBBBA Tax Benefits for Indiana Residents
Indiana's low flat tax plus OBBBA deductions provide good overall savings.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several new federal tax deductions that Indiana residents can claim starting with their 2025 tax returns.
Available OBBBA Deductions for IN Residents:
Calculate Your Indiana Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Indiana resident.
Calculate My SavingsHow Indiana Compares
| Tax Type | IN Rate | US Average | Comparison |
|---|---|---|---|
| Income Tax (Top Rate) | 3.15% | 5.1% | Varies |
| Sales Tax | 7.00% | 7.12% | Below Avg |
| Property Tax | 0.85% | 1.10% | Below Avg |
Frequently Asked Questions
What is the income tax rate in Indiana?
Indiana has a flat income tax with rates of 3.15%. Indiana has a flat income tax rate of 3.15%, plus local taxes.
What is the sales tax in Indiana?
The combined average sales tax rate in Indiana is 7.00%. This includes the state rate of 7.00% plus an average local rate of 0.00%.
How do OBBBA deductions benefit Indiana residents?
Indiana's low flat tax plus OBBBA deductions provide good overall savings. Indiana residents can claim tips, overtime, auto loan interest, SALT, and senior bonus deductions on their federal returns.
When are Indiana taxes due?
For tax year 2025, Indiana state taxes are due on April 15, 2026, the same date as federal taxes. Extensions may be available if you need more time to file.