Indianapolis Economic Development – Competitive by Nature

Corporate Adjusted Gross Income Tax
Net Effective Rate	8.50%

Corporate Franchise Tax

None

Personal Income Tax
State Rate	3.40%
Local Option Tax
Resident	0.70%
Non-Resident	0.18%

Sales and Use Tax	6.00%
Exemptions include: manufacturing raw materials, manufacturing equipment directly used in direct production, pollution abatement equipment, and software. In addition, most services are not subject to this tax.

Unemployment Insurance
New Employer Rate	2.70%
Experienced Employer Average Rate	1.30%
Taxable Wage Base	$7,000

Workers' Compensation (per $100 of payroll)
Average Rate for Manufacturing	$2.46
Average Rate for Distribution	$3.71
Average Rate for Office	$0.27

Property Tax¹ (per $100 of fair market value in use)
Real and Personal Property	Average Net Tax Rate	Range by Taxing Districts
Marion County (Indianapolis)	$3.21	$2.79 - $4.13
Inventory destined for out-of-state shipments may be exempt. In tax year 2006 payable 2007, the inventory tax is completely eliminated.

	View Property Tax Formulas
	Learn about Property Tax Abatement

1. 2001 payable 2002, Indiana Department of Revenue, Indiana Tax Commission.
2. Worker's Compensation Board of Indiana, Indiana Compensation Ratings Bureau, Department of Workforce Development-Unemployment Insurance Division/US Dept. of Labor.