TAXES

Indiana’s tax climate makes it easy to say “yes” to Hamilton County.

That’s not just us saying it; here’s what the Tax Foundation had to say when it published its 2014 State Business Climate Index, which ranked Indiana No. 10 among the states:

“Texas has been a top ten state in the Index for several years, but this year was ousted by Indiana, which made steady strides to improve its code in recent years.”

State Taxes

  • Indeed, Indiana is phasing down its corporate income tax rate from a rate of 8.5 percent to 4.9 percent in 2022 – second lowest in the country.
  • Indiana’s individual income tax rate also is being phased down from its current rate of 3.4 percent rate to 3.3 percent in 2015 to 3.23 percent in 2017.
  • Sales Tax: 7 percent. Groceries, prescription drugs and services are exempt from sales tax.
  • Miscellaneous State Tax Rates
  • Gasoline Tax: Rolling rate of 7 percent of the average price of gasoline the previous month.
BizTax is published by the Indiana Department of Revenue to help businesspeople understand state tax laws and the tax-filing process.

Local Taxes

  • Food & Beverage Tax: Hamilton County and three of its major cities – Carmel, Noblesville and Westfield – each adopted a 1 percent food and beverage tax in 2005. The food and beverage tax is added to the sales tax, so prepared food and beverages are taxed at 9 percent.
  • Uniform Innkeepers Tax: Hamilton County’s lodging properties collect a 5% lodging tax under the locally adopted Indiana Uniform Innkeepers Tax Code. Payment is due by the 20th of each month, and those who pay promptly may retain .83%.
  • County Option Income Tax: Hamilton County residents pay 1% percent.
  • Property Taxes: In 2010, voters approved an amendment that capped property taxes. The cap, called a "circuit breaker cap", limits property tax bills to 1% of value for residential, 2% of value for rental property and farmland and 3% of value for business property. As a result, the actual county tax rate can be higher but the maximum paid after deductions is capped through the circuit breaker. School referendum and debt services are exempt from the circuit breaker resulting in variation among taxing units and tax bills greater than the capped rate. Payments are made on a semi-annual basis and are due, generally, around May 10 and November 10.
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Tim
Monger
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Christy
Ellison Lugo
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Bradley
Coffing
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Musall
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