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.
1 bracket(s)
Treated as ordinary income
#27 (Above Avg)
State 7% + local avg 7%
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.
Not taxed
Taxable
None
| Rate | From | To |
|---|---|---|
| 3.05% | $0 | No limit |
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