How much are state taxes in Indiana?

3.23%
Overview of Indiana Taxes Indiana has a flat tax rate, meaning you’re taxed at the same 3.23% rate regardless of your income level or filing status. All 92 counties in the Hoosier State also charge local taxes. These local taxes could bring your total Indiana income tax rate to over 6.00%, depending on where you live.

What is Indiana state income tax rate for 2020?

Indiana Tax Brackets for Tax Year 2020 Indiana has an adjusted gross income flat tax rate of 3.23%.

What are the Indiana tax brackets?

Federal Income Tax Rates

Tax Rate Married Filing Jointly or Qualified Widow(er) Single
12% $20,550 – $83,550 $10,275 – $41,775
22% $83,550 – $178,150 $41,775 – $89,075
24% $178,150 – $340,100 $89,075 – $170,050
32% $340,100 – $431,900 $170,050 – $215,950

Does Indiana have high taxes?

Indiana. The Hoosier State dropped its flat income tax a smidge in 2017, from 3.3% to 3.23%, but many counties in Indiana also impose their own income taxes, with an average levy of 1.56%, according to the Tax Foundation. The state’s general sales tax is high, though municipalities don’t get to add to it.

What state has the highest income tax?

Residents of New York state face the country’s highest tax burden, according to a new WalletHub study.

Is Indiana a tax friendly state?

Indiana is moderately tax-friendly toward retirees. Social Security income is not taxed. Withdrawals from retirement accounts are fully taxed. Wages are taxed at normal rates, and your marginal state tax rate is 5.90%.

What is the Indiana tax rate for 2021?

State income tax rate remains at 3.23% The law also required that both residents and nonresidents living and/or working in a county pay at one local income tax rate, increasing the local taxes paid by nonresidents.

Is Indiana a tax-friendly state?

What is the least taxed state?

Alaska
Alaska had the lowest tax burden in the U.S. in 2021, though it was also one of the least affordable states to live in.