Indiana State Income Tax

Indiana residents are required to file state and federal income taxes. For the tax year 2023, the Indiana State Income Tax rate was 3.15%. The rate is reduced to 3.05% for the tax year 2024. Plans are also in place to gradually decrease it further to 2.9% by 2027. For 2024, the Department of Revenue is accepting filings for both Indiana tax forms. Generally, Indiana residents pay state income taxes through their employers, who withhold these funds from their paychecks. However, self-employed individuals and investors who receive capital gains from investment activities must pay Indiana income tax through their individual returns.

In addition, Indiana imposes county income taxes on residents and nonresidents with a principal place of business or employment in the county. The county income tax rates are the same for residents and nonresidents. However, each county has a different local property tax rate. These taxes are based on the value of your residence, but several exemptions can reduce your Indiana property tax bill.

How to Make a Payment to Indiana DOR?

If you owe Indiana income tax, you can make your payments online through the INTIME system. To do so, you must first create an account on the INTIME website by entering your personal information as prompted. Once you have an account, you can use the website to pay your taxes through electronic check or credit card. If you are unable to pay your tax debt in full, you can also set up a payment plan through INTIME.

Indiana Income Tax Due Dates

Indiana’s state income tax filing deadline is April 15. Like the IRS, Indiana uses a calendar-based filing system for individual tax returns. For employers, the withholding tax payment due date is based on how much your company withholds each month. Each year, this is reevaluated, and the withholding due date is adjusted accordingly.

If you need more time to complete your returns, you can apply for an extension using Form IT-65, available through the Department of Revenue website. Indiana also supports e-filing for amended returns. You can use this feature by checking the “Amended” box on the main menu of your return or by selecting it from the Additional Questions menu.

Indiana Income Tax Exemptions

Indiana does not have standard deductions you can claim on your state income tax return. However, you can claim personal exemptions to lower your taxable income. You can claim one or more personal exemptions for yourself, your spouse, and your children. You can also claim a credit for medical expenses and property taxes.

If you’re a member of the National Guard, you can deduct from your taxable income wages you earned while serving in Indiana on state active duty or federally mandated overseas missions. This includes both traditional members and dual status military technicians. You can also claim a tax credit for certain education expenses.