Tax Rates

According to the Tax Foundation's, 2013 State Business Tax Climate Index, Indiana has the 11th most business friendly tax climate. The index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential.

In February 2012, Indiana became the 23rd state in the nation to pass right-to-work legislation. This legislation offers Indiana as competitive location for new business investment.

Indiana's tax structure is competitive and is intended to reward investments and business innovation. State and local government levels know the significance in providing the populace equitable services and strong transportation networks while upholding a fair and impartial tax structure.

Indiana is also phasing in the Single-Sales Factor for apportioning corporate income tax. Indiana had determined its share of an interstate or international corporation's taxable income by weighing the Indiana portion of a company's property and the proportion of its employees in Indiana. The single-sales factor will calculate the Indiana portion based solely on the portion of a company's sales in Indiana. This change is being phased in and will be completed by 2011.