Indiana is in the LOWEST tax favorable quintile of all the United States. Can you believe that? Indiana is actually 2 quintiles behind…Illinois! Crazy…I know it.
Pulaski County adds 3.3% tax on top of the tax the state assesses as well. Which means you really need to look at the county you’re going to live in to get a better gauge of your total income tax in Indiana.
The state of Indiana doesn’t tax much, only 3.3%. But man, oh man, the county can hammer you. Bigly!
Not much in terms of exemptions either. IRAs, 401ks and out of state pensions all fully taxed.
Homestead exemptions is beyond my ability to comprehend here. So, if you live in Indiana DEFINITELY go to your county office and make sure you’re getting all the exemptions you are entitled!
Maybe even ask a local realtor if they know how to figure out the exemptions you may get in your county.
Cars sales tax is based on MSRP! It is NOT based on your purchase price. Crazy.
It appears there is no local sales tax though. Only the state and that is actually much more favorable in its entirety.
Overall, Indiana is not favorable in taxation. Not in the least. So, just keep that in mind as your figure out where you want to retire.