Indiana individual income tax
Indiana has an individual income tax that applies to all residents and nonresidents of the state. The tax is calculated based on an individual's federal-adjusted gross income and has a flat tax rate of 3.23%.
April 18
Return due in 2023
3.23%
Flat tax rate
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Pay income tax online
Visit the official state government’s website to pay individual income tax online.
Visit IndianaDOR
What is Indiana income tax?
Individual income tax
Individual income tax is a type of direct tax levied by Indiana on individuals that meet the taxable criteria.
Taxable incomes
Indiana taxes incomes from wages, dividends, interests and capital gains.
Tax brackets
Indiana has flat tax rate of 3.23%.
Standard deduction
Indiana does not have any standard deductions.
Personal exemption
Personal exemption is $1,000 for single filers and $2,000 for joint filers for the year 2022.
2022 tax rates
The following is the list of income tax rates for the tax year of 2022
| Indiana taxable income | Tax rate |
|---|---|
| Flat tax rate | 3.23% |
Individual income tax
The State of Indiana requires you to pay taxes if you are a resident (regardless of the whether they were earned within the state or not) or a non-resident that earns income from Indiana.
Types of taxable incomes
The income types on which tax is levied are:
In Indiana, all types of income are generally subject to personal income tax unless they are specifically exempt by state law. This includes, but is not limited to, wages and salary, dividends, capital gains, royalties, and other types of income.
File return
To file a tax return in Indiana, taxpayers must complete and submit a tax return form. The tax return form requires taxpayers to report their taxable income and any credits or deductions they are eligible to claim. Taxpayers must also calculate their tax liability and pay any taxes owed by the due date.
Indiana provides an auto extension of filing returns, if you have already availed for a federal extension.
Extension is only for filing and not for payment of taxes.
Extension can be filed using the INTIME portal if 90% of the tax due has been paid by the April 18, 2023 deadline.
File extension
Due
quarterly or annually
Pay taxes
Taxes in Indiana are due by 18 April, 2023. Go to the official Indiana Department of Revenue website.
If your tax liability is more than $1000 or if your income is not withheld for tax purposes, you are required to pay estimated taxes quarterly.
Estimated taxes are to be made quarterly in instalments by the 15th of April, June, September, and January the next year.
Type of tax
flat rate tax
Due
quarterly or annually
Deductions
Tax deductions are a reduction in the amount of income that is subject to taxation. It allows taxpayers to lower the amount of taxable income they have, which in turn reduces the amount of tax they owe. Tax deductions are available for a wide range of expenses, such as charitable donations, mortgage interest, medical expenses, and business expenses.
Credits
A tax credit allows taxpayers to reduce the amount of taxes they are required to pay. This is different from a tax deduction, which reduces the amount of income that is subject to taxation. Tax credits are applied directly to the tax liability, while deductions are applied to the taxable income.
Exclusions
Tax exclusions are an amount of money or income that is not subject to taxation. This means that taxpayers do not have to pay taxes on this income.
Residency
Residency in Indiana refers to an individual's permanent home or place of residence in the state.
Indiana resident
An Indiana resident is someone who is domiciled in Indiana, or who maintains a permanent place of residence in the state for the entire year.
If you have been temporarily out of the state, with a permanent residence, driver's license and voting rights in Indiana, you're still considered a resident.
Indiana part-year resident
An Indiana Part-Year Resident is someone who moved into or out of the state during the tax year.
Income earned while the individual was a resident of Indiana is subject to state taxes.
Indiana non-resident
An Indiana Nonresident is someone who does not have a permanent residence in the state.
Nonresidents who receive income from Indiana sources are required to pay Indiana taxes. This includes income from Indiana properties and personal services performed in the state.
Frequently asked questions
Business entities in Indiana
There are several business entities in Indiana
Indiana LLC
Page sponsorWhy we like StartGlobal?
My genuine thoughts
Willy Justin
Founder, Statepedia
StartGlobal: Legal + Taxes + Bookkeeping for solopreneurs
Product
For small businesses, managing taxes, accounting and everything legal is just a pain. Nobody wants to do it, but they have to. Instead of working with CPAs, attorneys and others separately, Start brings all of them under a single subscription. It’s just smooth.
Team
I know the team behind StartGlobal very well. It’s a very hardworking group of individuals who are genuinely passionate about small businesses. They are backed by successful founders like Balaji Srinivasan, Biz Stone(Twitter) and others.
Price
Getting a CPA or attorney is a matter of thousands of dollars. It’s just unfair to pay so much when you’re a small business. Start has a single subscription that covers it all. It is a definite money saver.
$599 one-time