Taxes in Indiana
Every state-level tax in Indiana, in one place—income, sales, property, corporate, estate, transfer, and excise taxes. Figures sourced from the IRS, U.S. Census Bureau, and Tax Foundation.
Indiana’s gas tax ranks third-highest of all 51 jurisdictions, a striking distinction for a state better known for its central location than for aggressive taxation. Anyone who drives regularly—commuters, truckers, rural residents covering long distances—should expect to feel that ranking at the pump more than they might in most other states. For relocators weighing where their money goes, this single fact signals that Indiana’s road-related charges carry unusual weight, even if other parts of the tax picture look different. If you log heavy mileage or run a vehicle-dependent household, that third-place finish deserves a place in your calculations before you decide.
State income tax
2.95% flat rate.
Local income tax: Indianapolis levies an income tax of 2.02%. See all local income taxes.
Sales tax
The combined state + local sales tax rate is 7.00%. State rate 7.00% plus an average 0.00% local.
Estate & inheritance tax
Indiana imposes no state estate or inheritance tax—only the federal estate tax applies.
Real estate transfer tax
Indiana levies a transfer tax of 0.000% — No state transfer tax.
Cigarette Tax
Indiana levies a cigarette tax of $3.00 per pack of 20. Federal excise adds $1.01 per pack.
Gas Tax
Indiana levies a gas tax of 63.10¢ per gallon. Federal excise adds 18.4¢ per gallon. Excludes local taxes and environmental/carbon-related costs.
Beer Tax
Indiana levies a beer tax of $0.115 per gallon. Federal excise adds $0.113–$0.581 per gallon depending on brewery size.
Wine Tax
Indiana levies a wine tax of $0.470 per gallon. Federal excise adds $1.07 per gallon (11% still wine). MS, NH, PA, UT, WY are control states with no published excise rate.
Spirits Tax
Indiana levies a spirits tax of $2.680 per gallon. Federal excise adds $5.40 per gallon (40% ABV). NH and WY are control states with an effective $0.00 rate.
Property tax by county
The state's median county effective property tax rate is 0.66%. Compare counties below for local rates.
Counties in Indiana by property tax rate
| County | Effective rate | Median home value |
|---|---|---|
| Lake County | 0.92% | $230,600 |
| Marion County | 0.91% | $224,000 |
| Vigo County | 0.88% | $148,500 |
| Hamilton County | 0.88% | $405,500 |
| St. Joseph County | 0.86% | $192,800 |
| Porter County | 0.83% | $281,500 |
| Elkhart County | 0.82% | $210,400 |
| Blackford County | 0.81% | $107,500 |
| Wayne County | 0.81% | $140,200 |
| Hendricks County | 0.81% | $307,600 |
| Vanderburgh County | 0.80% | $184,000 |
| Randolph County | 0.79% | $113,400 |
| Allen County | 0.79% | $214,900 |
| Pike County | 0.78% | $154,900 |
| Boone County | 0.78% | $376,200 |
| Benton County | 0.77% | $151,000 |
| Newton County | 0.77% | $171,500 |
| Adams County | 0.77% | $178,400 |
| Clark County | 0.77% | $222,900 |
| LaPorte County | 0.77% | $195,500 |
| Crawford County | 0.75% | $117,700 |
| Bartholomew County | 0.75% | $232,800 |
| Delaware County | 0.74% | $139,400 |
| Madison County | 0.74% | $161,300 |
| Dearborn County | 0.73% | $243,400 |
| Henry County | 0.73% | $154,400 |
| Fayette County | 0.73% | $130,700 |
| Gibson County | 0.72% | $180,000 |
| Grant County | 0.72% | $122,300 |
| Howard County | 0.72% | $165,000 |