Indiana
Taxes and business formation • USA 2025–2026
TL;DR
Indiana at a glance — 2026 figures
State filing fees and tax position for individuals and companies registered in Indiana.
| Parameter | Value |
|---|---|
| Personal income tax | See the income tax section below |
| LLC formation fee | $100.00 |
| LLC annual report fee | $32.00 |
| LLC annual report deadline | Annually, on the last day of the registration-anniversary month |
| LLC dissolution fee | $30.00 |
| Corporation formation fee | $100.00 |
| Corporation annual report fee | $32.00 |
State filing fees are set by the Secretary of State and change without notice — the official source is linked in each section below. Federal figures for tax year 2026 are on the 2026 tax cheat sheet.
Updated: August 2026
LLC in Indiana
Corporation in Indiana
Tax system of Indiana
Income Tax
Indiana levies a flat personal income tax on individuals. The rate for 2025 is 3.05%, with a gradual reduction to 2.9% planned by 2027. In addition, each county levies a local income tax (County Income Tax), with rates ranging from 1% to 3.4% depending on the taxpayer's place of residence. The tax applies to all types of income.
Sales Tax
Indiana's base sales tax rate is 7% and is uniform throughout the state, with no additional local surcharges. The sales tax applies to most goods and certain services, including equipment rentals, digital products, and repairs. Groceries, prescription drugs, certain medical items, and manufacturing equipment are exempt. Determining the taxable base and the correct sales tax rate requires knowledge of state law and an understanding of the specifics of each business. Our firm provides services for obtaining a Sales Tax Certificate and for preparing and filing the Sales and Use Tax Return. We advise business owners on registration, calculation, and reporting.
Property Tax
In Indiana, property tax is regulated at the county and local municipal level. The average effective rate is about 0.85% of assessed value. Rates can vary significantly depending on the region and the intended use of the property. Indiana applies caps on tax growth for owners of a primary residence (homestead), farmland, and rental properties.
Business Taxes
C-corporations are subject to income tax at a rate of 4.9% in 2025. The tax base is determined as federal Adjusted Gross Income (AGI) with certain modifications. LLCs, corporations, and partnerships are required to file a Business Entity Report with the Indiana Secretary of State. The filing deadline is every two years, by the end of the month in which the company was registered.
Excise Taxes
Indiana levies excise taxes on the following categories: fuel (gasoline, diesel), alcohol, tobacco products, gaming machines, and so on. Some excise taxes depend on the location of sale and the category of consumer.
Favorable Tax Conditions
Indiana is recognized as one of the most business-friendly states in the Midwest thanks to: • Its low flat personal income tax rate, • A uniform sales tax with no local surcharges, • Simple reporting and registration requirements, • The absence of estate and gift taxes, • A moderate property tax with protections for primary residences.
Compared to Other States
Compared to Illinois, Michigan, and Ohio, Indiana offers a lower overall tax burden and a more predictable reporting system. The absence of a gross receipts tax makes the state attractive for high-volume, low-margin companies, while the relatively low property tax, simple company registration, and accessible infrastructure support the growth of small and medium-sized businesses.
Frequently asked questions
Does Indiana have a personal income tax?+
Yes. Indiana levies a personal income tax on residents. The current rates and brackets are set out in the income tax section on this page, with a link to the state tax authority — rates are revised by the legislature, so always check the official source before filing.
How much does it cost to register an LLC in Indiana?+
The state filing fee in Indiana is $100.00. On top of that you need a registered agent with a physical address in the state, and FinTaxes charges from $299 for the formation service itself.
When is the annual report due for a Indiana LLC?+
The Indiana annual report fee is $32.00, due Annually, on the last day of the registration-anniversary month. Missing it typically triggers a late penalty and, if left unresolved, administrative dissolution of the company.
Do I need to live in Indiana to open an LLC there?+
No. You do not need to live in Indiana — or in the United States at all — to own an LLC registered there. Non-residents can form and own a US LLC; what the state requires is a registered agent with a physical in-state address. Your own tax residency is a separate question and decides which returns you file.
Can FinTaxes file my Indiana state return remotely?+
Yes. FinTaxes prepares and e-files federal and Indiana state returns entirely remotely, for clients anywhere in the US or abroad, as an Authorized IRS e-file Provider.
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