CORPORATE INCOME TAX
The Indiana Corporate Income Tax Reduction is 6.0%.GROSS RECEIPTS AND INVENTORY TAX
Indiana has no gross receipts tax and no inventory tax.
INDIVIDUAL INCOME TAX
Indiana’s personal income tax is 3.3 percent of federal adjusted gross income (with certain exemptions and deductions).
HOOSIER HEADQUARTERS RELOCATION
TAX CREDIT
When a business relocates its corporate headquarters (defined as the location of the principal office of the principal executives) to Indiana, it is entitled to a credit against its state tax liability equal to half of the costs incurred in relocating the headquarters. A company must have global annual revenue of at least $100 million to qualify.
PROPERTY TAX
Real and personal property tax is assessed at 100 percent of market value. Tax rates and exemptions vary among local jurisdictions. Homeowner property taxes are capped at 1 percent of a home’s assessed value, apartments and agriculture land are capped at 2 percent of assessed value, and business property taxes are capped at 3 percent of assessed value.
SALES AND USE TAX
Indiana’s Sales and Use Tax is tax is calculated at a rate of 7 percent. In manufacturing, the following are exempt from the sales tax: raw materials, equipment, power, electricity, and utilities. Wholesale sales, items used directly in production, and sales made in interstate commerce are exempt. In addition, the purchase of research and development equipment is exempt from the tax.
SINGLE-SALES FACTOR
Indiana uses a single-sales factor for apportioning corporate income tax. Indiana had determined its share of an interstate or international corporation's taxable income by weighing the Indiana portion of a company's property and the proportion of its employees in Indiana. The single-sales factor will calculate the Indiana portion based solely on the portion of a company's sales in Indiana.
