Ranked by the Tax Foundation as one of the best tax environments in the United States, Indiana’s business-friendly tax climate creates a thriving landscape for innovative businesses and growth. Compared to surrounding states, Indiana boasts a total tax burden lower than Ohio, Illinois, Wisconsin and Michigan.
Creating an environment that’s good for business is something Indiana takes seriously. Due to legislation in 2011, Indiana’s corporate income tax rate fell by 2 percent. This was the continuation of a scheduled multiyear reduction, which will ultimately see the corporate income tax rate reduced to 4.9 percent by 2022, which would make Indiana’s the second-lowest corporate tax rate of any state levying the tax.
|Corporate Income Tax||4.9%|
|Sales and Use Tax||7%|
|Individual Income Tax||3.23%|
|Gross Receipts and Inventory Tax||0%|
Source: State of Indiana
Property taxes in Northeast Indiana vary by township and range. Pursuant to state law, property taxes are capped at 1% of assessed value for homesteads, 2% for other residential and agricultural properties and 3% for business property.
Property tax rates on real and personal property are frequently abated for up to 10 years to support economic development projects.