Indiana

IN2026 Tax Data
Income Tax
3.15%
Sales Tax
7.00%
Property Tax
0.80%

Indiana Tax Overview 2026

Indiana has a flat income tax rate of 3.15%. The state sales tax rate is 7.00% and property taxes average 0.80% of home value.

  • Sales Tax: Base rate 7.00%. Combined rate up to 7.00% with local taxes.
  • Groceries: Subject to full sales tax
  • Prescriptions: Exempt from sales tax
  • Clothing: Subject to sales tax
  • Property Tax: Effective rate of 0.80% on a median home value of $149,400

Indiana Tax FAQ

What is the income tax rate in Indiana for 2026?

Indiana's income tax rate ranges from 3.15% (flat rate). Use our Indiana income tax calculator above to estimate your specific tax.

What is the sales tax rate in Indiana?

The base state sales tax rate in Indiana is 7.00%. With local taxes, the combined rate can reach up to 7.00%. Groceries are generally subject to sales tax.

Does Indiana tax retirement income?

Indiana taxes retirement income such as pensions and 401(k) distributions as ordinary income. Check with a tax professional for specific retirement tax rules.

What is the standard deduction in Indiana for 2026?

The standard deduction for single filers in Indiana is $14,600 and $29,200 for married couples filing jointly.

How do Indiana tax rates compare to other states?

Indiana's top income tax rate of 3.15% is around the national average. Combined state and local sales tax rates in Indiana are 7.00%. Use our comparison tools to see how Indiana stacks up against neighboring states.