Indiana Form IT-40PNR is the state income tax return you use if you lived in Indiana for only part of 2025 or lived elsewhere but earned income from Indiana sources. You file it with the Indiana Department of Revenue, report your full federal income, identify the Indiana portion, and pay state and county tax on that portion at Indiana’s flat 3.0% rate.1Indiana General Assembly. Indiana Code 6-3-2-1 – Imposition of Tax; Tax Rate; Calculation and Certification of Individual Adjusted Gross Income Tax Rate The 2025 return is due April 15, 2026, and it must be filed with Schedules A, B, D, H (both pages), and CT-40PNR attached.2Indiana Department of Revenue. Current Year Individual Tax Forms
Who Should Use This Form
Two situations point you to the IT-40PNR. The first is part-year residency: you moved into or out of Indiana during the year, and Indiana taxes the income you earned while living here plus any Indiana-sourced income you received during the rest of the year. The second is full-year nonresidency with Indiana-sourced income, such as wages from an Indiana employer, rent from Indiana property, or business income earned in the state.3Indiana Department of Revenue. Individual Income Tax Overview
There is one mixed case: a married couple filing jointly where one spouse was a full-year Indiana resident and the other was not. That couple uses the IT-40PNR rather than the standard IT-40.4Indiana Department of Revenue. Indiana 2025 IT-40 Full-Year Resident Individual Income Tax Booklet Your filing status on the IT-40PNR must match the status on your federal return.
If You Live in a Reciprocity State
Indiana has reciprocal tax agreements with Illinois, Kentucky, Michigan, Ohio, Pennsylvania, and Wisconsin.5Legal Information Institute. 45 IAC 3.1-1-76 – Reciprocity If you live in one of those states and your only Indiana income was salaries, wages, or commissions, Indiana will not tax those earnings; you report them to your home state instead.6Indiana Department of Revenue. Income Tax Information Bulletin #28 You would still file the IT-40PNR if an Indiana employer withheld Indiana tax by mistake, so you can claim it back. Reciprocity does not cover rental income, self-employment income, or other Indiana-sourced income, so if you have any of those, you owe Indiana tax and must file.
If You Are a Military Spouse
Under the Military Spouses Residency Relief Act, the spouse of an active-duty service member stationed in Indiana can deduct Indiana-sourced earned income if both spouses share a domicile in another state, the service member is in Indiana on orders, and the spouse is here only to accompany them. Attach Schedule IN-2058SP to claim the deduction.7Indiana Department of Revenue. Military Service Members
What to Gather Before You Start
- Your completed federal Form 1040. Most Schedule A income figures come straight from it.
- W-2s and 1099s, so you can identify Indiana withholding and separate Indiana-sourced income from the rest.
- Social Security numbers for you, your spouse, and any dependents.
- The exact dates your Indiana residency began or ended, if you moved during the year. Schedule H requires them.
- The two-digit county code for the Indiana county where you lived on January 1, or if you lived out of state, the county where your principal place of work was located on January 1.8Indiana Department of Revenue. County Income Tax Rates and County Codes
Working Through the Return
The IT-40PNR runs on its schedules. You fill those in first, and their totals feed the main form where the tax gets calculated.
Schedule A: Proration of Income
Schedule A is the core of the return. Column A holds your total income from the federal 1040. Column B holds only the portion attributable to Indiana. You work through wages, business income, rental income, capital gains, and every other category, filling in both columns.2Indiana Department of Revenue. Current Year Individual Tax Forms
At the bottom, divide Indiana income (line 21B) by total income (line 21A) to produce a proration percentage, carried to three decimal places.9Indiana Department of Revenue. Indiana 2024 IT-40PNR Part-Year and Full-Year Nonresident Individual Income Tax Booklet Two edge cases: if line 21B is a loss, enter zero. If line 21A is a loss but line 21B is positive, use 1.00. That percentage flows to Schedule D and scales your exemptions to the Indiana share of your income.
Schedule B: Add-Backs
Indiana does not accept every federal deduction. Common items you have to add back include:
- State and local income taxes deducted on a federal itemized return.
- Federal net operating loss deductions.
- Interest from non-Indiana municipal bonds acquired after December 31, 2011.
- Bonus depreciation claimed under IRC Section 168(k).
- Section 179 expense above Indiana’s $25,000 cap.
Schedule D: Exemptions
Schedule D is where you claim personal exemptions for yourself, your spouse, and your dependents. The Schedule A proration percentage reduces those exemptions to match the Indiana portion of your income, so a nonresident with a small share of Indiana income does not claim the same exemption amount as a full-year resident.
Schedule H: Residency Information
Both pages of Schedule H are required. Part-year residents enter the date they moved in or out. Nonresidents confirm they did not live in Indiana at any point during the year. The Department cross-checks these dates against your Schedule A proration.
Schedule CT-40PNR: County Tax
Most Indiana counties impose a local income tax on top of the state rate. Enter the two-digit code for your county of residence on January 1, or your county of principal work on that date if you lived outside Indiana.10Indiana Department of Revenue. Departmental Notice #1 Rates run from under 1% to nearly 3%, and the Department publishes the full list annually.8Indiana Department of Revenue. County Income Tax Rates and County Codes
The Main Form
With the schedules complete, totals move to the front of the IT-40PNR. The 3.0% state rate applies to your Indiana adjusted gross income, county tax from Schedule CT-40PNR gets added, and credits and withholding you have already paid come off.1Indiana General Assembly. Indiana Code 6-3-2-1 – Imposition of Tax; Tax Rate; Calculation and Certification of Individual Adjusted Gross Income Tax Rate What remains is your refund or balance due.
Deadline, Extensions, and Late Penalties
The 2025 IT-40PNR is due April 15, 2026. If you file a federal extension with the IRS, Indiana automatically grants a matching state extension; no separate form is needed. You can also request an Indiana-only extension by filing Form IT-9 or submitting the request through the INTIME portal before April 15.11Indiana Department of Revenue. Extension of Time to File
An extension moves the filing deadline to November 16, 2026, but not the payment deadline. Interest starts accruing on any unpaid balance after April 15. The late-payment penalty is waived if you pay at least 90% of what you owe by April 15 and pay the rest with interest by November 16.11Indiana Department of Revenue. Extension of Time to File Missing the deadline without an extension triggers a penalty of 10% of the unpaid tax or $5, whichever is greater, plus interest.12Indiana Department of Revenue. Fines, Fees and Penalties
Estimated Payments During the Year
If you expect to owe $1,000 or more in combined state and county tax beyond what is withheld, you owe quarterly estimated payments. This tends to catch nonresidents with Indiana rental income, self-employment income, or investment income, where no employer is withholding. Due dates are April 15, June 15, September 15, and January 15 of the following year, shifting to the next business day when a due date lands on a weekend or holiday. You can pay through INTIME or mail a check with a payment voucher.13Indiana Department of Revenue. Estimated Payments
How to Submit Your Return
The fastest route is electronic filing through INTIME, the Department’s online portal, or through approved tax software that supports Indiana e-filing.14Indiana Department of Revenue. E-file Options You get confirmation of receipt and can pay any balance at the same time.
Paper filers use one of two addresses, depending on whether you owe money:
- With payment: Indiana Department of Revenue, P.O. Box 7224, Indianapolis, IN 46207-7224.
- Refund or no balance due: Indiana Department of Revenue, P.O. Box 40, Indianapolis, IN 46206-0040.
Using the wrong box slows processing.15Indiana Department of Revenue. Mail in Tax Forms
After You File
The Department’s “Where’s My Refund?” tool tracks your return. E-filed returns take up to three weeks to process; paper returns can take up to twelve.16Indiana Department of Revenue. Check the Status of Your Refund
If you catch an error later, you can amend. For tax years 2021 forward, you amend by selecting “Amended” on Form IT-40 through INTIME rather than filing a separate form, and you include every schedule that changed. You have three years from the original due date, or from the date the tax was paid, whichever is later. Do not amend for math errors; the Department fixes those on its own. If additional tax is owed on the amended return, pay it quickly to stop interest from growing. A federal amendment goes to the IRS separately on Form 1040X.17Indiana Department of Revenue. Amend A Return