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Indiana Income Tax
Indiana has a flat tax of 3.4% on federal AGI. Indiana tax returns are due by April 15th. Most of Indiana’s counties have additional income tax. A listing of counties and their respective tax rates can be found on the Indiana website.
Indiana Tax Filing Guide
Here are detailed instructions for filing taxes in the state of Indiana.
Consider using TurboTax to E-File your Indiana taxes.
Indiana Residents
You are a resident of Indiana if you maintained legal residence in Indiana from January 1st to December 31st. Legal residents don’t have to be physically present in Indiana for the entire year, as long as they leave only temporarily. Retirees may maintain full-year Indiana residency, even if they leave several months a year, if they intend to return to Indiana, retain a Indiana driver’s license, and retain Indiana voting rights.
If you are a full year resident of Indiana whose gross income was more than your total exemptions, you must file a Indiana resident tax return. Indiana residents must file a resident returns with Indiana using either Form IT-40 or Form IT-40EZ. Form IT-40EZ can be used if you claim no dependents, have only Indiana sourced income, and have no withholding credits. If you do not qualify to file using Form IT-40EZ, you will need to file your return using From IT-40. Both forms are attached below along with the IT-40 Instructional Book, which can be used to gather additional information no matter which from you use to file your return.
Related Tax Forms
- Form IT-40 - Indiana Individual Resident Income Tax Return (Long)
- Form IT-40EZ - Indiana Individual Resident Income Tax Return (Short)
Part-Year Indiana Residents
If you were an Indiana resident for only part of the year, perhaps because you moved in or out of Indiana during the tax year, you are a part-year resident of indiana. If you are a Indiana part-year residents who received income during the time that you were an Indiana residents need to file Form IT-40PNR. If you received income from Indiana while you were a resident of a different state, you need to file Form IT-40PNR. Form IT-40 PNR may also be used, if you (and/or your spouse; pending you are filing jointly) were an Indiana resident(s) for only part of the year, and you will not qualify to file your return using Form IT-40 RNR.
Related Tax Forms
- Form IT-40RNR - Indiana Individual Reciprocal Non-resident Income Tax Return
- Form IT-40PNR - Indiana Individual Part-Year and Non-resident Income Tax Return
Indiana Residents who work in another state
You are a resident of Indiana if you maintained legal residence in Indiana from January 1st to December 31st. Legal residents don’t have to be physically present in Indiana for the entire year, as long as they leave only temporarily. Retirees may maintain full-year Indiana residency, even if they leave several months a year, if they intend to return to Indiana, retain a Indiana driver’s license, and retain Indiana voting rights.
If you are a full year resident of Indiana whose gross income was more than your total exemptions, you must file a Indiana resident tax return. Indiana residents must file a resident returns with Indiana using either Form IT-40 or Form IT-40EZ. Form IT-40EZ can be used if you claim no dependents, have only Indiana sourced income, and have no withholding credits. If you do not qualify to file using Form IT-40EZ, you will need to file your return using From IT-40. Both forms are attached below along with the IT-40 Instructional Book, which can be used to gather additional information no matter which from you use to file your return.
If you are a Indiana resident that works in another state, and you were taxed by the state in which you earned the income in, you maybe able to claim 2 different types of credits; a credit for local taxes paid to a city, county, town, or other local governmental entity outside Indiana and a credit for state taxes paid to another state. The local credit can be found on Line 1 while the state credit can be found on Line 5.
Please note: If the state you work in was Kentucky, Michigan, Ohio, Pennsylvania, or Wisconsin you should not have to file taxes with these states due to reciprocal agreements. Your employer should withhold Indiana taxes because of the reciprocal agreements for Indiana. Should your employer withhold taxes for another state, not Indiana, you need to make sure to have the withheld income released, because no credit will be awarded from Indiana towards these states. No credit will be awarded from Indiana because you were not supposed to pay taxes to these states.
If the state you work in was Arizona, California, Oregon, or Washington D.C., you will not be awarded any Indiana credits because these states should not tax you on any income. You should make sure you employer does not withhold taxes for these states, since no credit will be awarded from Indiana towards these states.
If the state you work in was Alaska, Florida, Nevada, South Dakota, Texas, Washington, or Wyoming you will not be awarded any Indiana credit because these states have no income tax, thus you will need to pay Indiana tax on any income earned from these states.
Related Tax Forms
- Form IT-40 - Indiana Individual Resident Income Tax Return (Long)
- Form IT-40EZ - Indiana Individual Resident Income Tax Return (Short)
Non-Residents who work in Indiana
If you were a legal resident of a state besides Indiana (see exceptions below), but made income from one or more of the Indiana sources listed below, you will need to file a nonresident return with Indiana on that income.
Taxable income according to Indiana includes income from:
1. Winnings from gambling or lotteries
2. Commission (which includes salaries, wages, tips etc.)
3. Any business, partnership, or S corp. operating in Indiana
4. Any property in Indiana
5. Stocks, bonds, notes, bank deposits, patents, or any other intangible business property
7. Trusts and estates given to nonresident heirs
If your home state is Kentucky, Michigan, Ohio, Pennsylvania or Wisconsin, and the only income you received from Indiana sources is commission, you may file your return using Form IT-40RNR. However, if you are from a state other than Kentucky, Michigan, Ohio, Pennsylvania or Wisconsin, or if you had income from an Indiana source other than commission, you need to file your return using Form IT-40PNR.
State Exceptions
1. If you live in Kentucky, Michigan, Ohio, Pennsylvania or Wisconsin, you will not need to pay taxes to Indiana if your only source of income was commission, however you will need to file Form IT-40RNR.
2. If the state you live in was Alaska, Florida, Nevada, South Dakota, Texas, Washington, or Wyoming, you will have to file a return with Indiana because these states have no income tax so you will need to pay Indiana tax on any income made from Indiana sources.
3. If you are from Alabama, Arkansas, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virginia, West Virginia, or any foreign countries you will need to file a tax return with Indiana for income earned from Indiana sources and receive credit from your home state to avoid dual taxation on such income.
Related Tax Forms
- Form IT-40RNR - Indiana Individual Reciprocal Non-resident Income Tax Return
- Form IT-40PNR - Indiana Individual Part-Year and Non-resident Income Tax Return
Non-Residents who sold property in Indiana
If you were a legal resident of a state besides Indiana (see exceptions below), but made income from one or more of the Indiana sources listed below, you will need to file a nonresident return with Indiana on that income.
Taxable income according to Indiana includes income from:
1. Winnings from gambling or lotteries
2. Commission (which includes salaries, wages, tips etc.)
3. Any business, partnership, or S corp. operating in Indiana
4. Any property in Indiana
5. Stocks, bonds, notes, bank deposits, patents, or any other intangible business property
7. Trusts and estates given to nonresident heirs
If your home state is Kentucky, Michigan, Ohio, Pennsylvania or Wisconsin, and the only income you received from Indiana sources is commission, you may file your return using Form IT-40RNR. However, if you are from a state other than Kentucky, Michigan, Ohio, Pennsylvania or Wisconsin, or if you had income from an Indiana source other than commission, you need to file your return using Form IT-40PNR.
State Exceptions
1. If you live in Kentucky, Michigan, Ohio, Pennsylvania or Wisconsin, you will not need to pay taxes to Indiana if your only source of income was commission, however you will need to file Form IT-40RNR.
2. If the state you live in was Alaska, Florida, Nevada, South Dakota, Texas, Washington, or Wyoming, you will have to file a return with Indiana because these states have no income tax so you will need to pay Indiana tax on any income made from Indiana sources.
3. If you are from Alabama, Arkansas, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virginia, West Virginia, or any foreign countries you will need to file a tax return with Indiana for income earned from Indiana sources and receive credit from your home state to avoid dual taxation on such income.
Related Tax Forms
- Form IT-40RNR - Indiana Individual Reciprocal Non-resident Income Tax Return
- Form IT-40PNR - Indiana Individual Part-Year and Non-resident Income Tax Return
Indiana State Tax Forms
- Form IT-40PNR - Indiana Individual Part-Year and Non-resident Income Tax Return
- Schedule CT-40 - Indiana County Tax Schedule
- Schedule 5 - Indiana Credit Schedule
- Schedule 6 - Indiana Offset Credits
- Schedules 3 & 4 - Indiana Exemptions and Other Taxes Schedules
- Schedule IT-2210 - Indiana Individual Underpayment of Estimated Tax
- Schedule IT-2210A - Indiana Annualized Schedule of Underpayment of Estimated Tax
- Form IT-40RNR - Indiana Individual Reciprocal Non-resident Income Tax Return
- Form IT-40 - Indiana Individual Resident Income Tax Return (Long)
- Form IT-40EZ - Indiana Individual Resident Income Tax Return (Short)
- Form IT-9 - Indiana Application for Extension of Time to File
Relevant Links
- State of Indiana Tax Website - Official Site
- State of Indiana E-File Service - Offered by Indiana's Official Website
- Additional Tax return - A Comprehensive Collection of Indiana Tax Forms
Indiana Mailing Address
Wondering where to mail your Indiana taxes? Here's the address:If Enclosing Payment Mail To:
Indiana Department of Revenue
P.O. Box 7224, Indianapolis, IN 46207-7224.
Mail All Other Returns To:
Indiana Department of Revenue
P.O. Box 40, Indianapolis, IN 46206-0040
Indiana Sales Tax
Indiana has a 7% sales tax.
