Retirement Tax Breakdown for Indiana Residents

Complete Indiana retirement tax guide: income tax rates, capital gains treatment, Social Security and pension taxation, property taxes, and sales tax. Overall retiree-friendliness rank: #30 of 51.

State Income Tax
3.05% top rate

1 bracket(s)

Capital Gains Rate
3.05%

Treated as ordinary income

Property Tax Rate
0.84%

#27 (Above Avg)

Sales Tax Rate
7%

State 7% + local avg 7%

Less Tax-Friendly State

Indiana's flat 3.05% income tax is low, but it taxes retirement account withdrawals and pensions. Social Security is exempt. Sales tax is high.

Retirement Income Taxation

Social Security

Not taxed

Pension Income

Taxable

Retirement Exemption

None

Tax Comparison Summary

State income tax3.05% top
Capital gains3.05%
Property tax0.84% effective
Sales tax7% combined
Overall retiree rank#30 of 51

Indiana Income Tax Brackets

State Tax Bracket Schedule

RateFromTo
3.05%$0No limit

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