The 1851 Constitution of the State of Indiana established various local government structures to administer state and local laws and ordinances. This includes elected and appointed representatives for mayors, councils, commissions, courts, sheriffs, clerks, auditors, coroners, surveyors and boards. Primary elections are held on the second Tuesday of May, and general elections are on the second Tuesday in November.
Indiana is one of the most competitive, low-tax states in the country.
Corporate Income Tax
Corporate tax rates in Indiana are based on a corporation's adjusted gross income at a flat rate. Currently, the Indiana corporate tax rate is set to decrease every 12 months through at least 2021:5.5 percent from July 1, 2019, to June 30, 2020
5.25 percent from July 1, 2020, to June 30, 2021
4.9 percent after June 30, 2021
Incentives are available to qualifying companies, including credit for headquarters relocated from out of state, research and development, and more. Indiana applies the single-sales factor, meaning it will calculate the Indiana portion of a corporation’s income tax based solely on the portion of the company’s sales in Indiana.
Sales and Use Tax
This is a flat seven percent. Most services are not subject to tax. Some exemptions are available, including manufacturing equipment and materials, utilities, research and development equipment, and more.
Personal Income Tax (Resident)
Personal income tax is a flat 3.23 percent of adjusted gross income, plus one percent (Johnson County residents) or 1.77 percent (Marion County residents) of adjusted gross income.
Property tax rates vary among Indiana counties and townships. Real and personal property is assessed at 100 percent of market value. Taxes are capped at one percent for residential, two percent for rental and farmland, and three percent for business. Incentives (including abatements) are available to qualifying companies.
Our communities have a bold vision for land development and use thorough comprehensive master plans. We share a common goal to encourage and accommodate growth while maintaining our excellent quality of life. Our local government planning departments and commissions take into consideration economic development, land use, site plan reviews, and construction.