Indiana taxes — property, income, sales, retirement

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Property tax, income tax, sales tax, and retirement-income treatment in Indiana. Quick read for movers, retirees, and remote workers.

Flat 3.05% income tax (lowering further). Modest property tax. 7% sales. Retirement income largely untaxed.
Effective property tax
0.83%
of home value/yr
Income tax (top rate)
3.05%
Sales tax (state)
7.00%
local adds more
SS taxed by state?
No

Property tax

Indiana’s effective property tax rate is approximately 0.83% of assessed home value per year. On a $350,000 home that’s about $2,905/yr. Rates vary by county and municipality — this is a state-wide average.

Income tax

Top marginal rate: 3.05%. Brackets vary by income. For wage earners, the effective rate depends on filing status, deductions, and credits.

Sales tax

State base rate: 7.00%. Local municipal and county additions can raise the combined rate by 1-4 percentage points.

Retirement income

Social Security: Not taxed by state. Pensions & 401(k) withdrawals: Partial exclusion / credit available.

Top cities in Indiana

Fort Wayne · pop 273,203 · momentum 75

Evansville · pop 115,395 · momentum 71

Fishers · pop 103,986 · momentum 69

South Bend · pop 103,713 · momentum 76

Carmel · pop 103,606 · momentum 74

Bloomington · pop 79,986 · momentum 66

Compare to other states: All 50 state tax overviews · All Indiana cities · Best Indiana cities for retirees

Sources: Tax Foundation effective property tax rankings, state DOR publications, AARP retirement tax guide. 2024/2025 representative figures — verify with a CPA for your specific situation.