Indiana income tax is a flat 2.95% of your Indiana adjusted gross income for the 2026 tax year, plus a county income tax between 0.5% and 3.0% depending on where you lived on January 1. Returns for the 2025 tax year are due April 15, 2026, and most people file electronically through the state’s INTIME portal.
What You’ll Pay
Indiana uses a single flat rate with no brackets. Multiply your Indiana adjusted gross income by 0.0295 and you have your state liability for 2026.{1Indiana Department of Revenue. Rates, Fees and Penalties}
That rate has been dropping on a schedule written into state law:
- 2024: 3.05%
- 2025: 3.00%
- 2026: 2.95%
- 2027 through 2029: 2.90%
Further cuts after 2029 are conditional on the state’s general fund growing by at least 3.5% in each of four consecutive fiscal years. If that happens, the rate drops another 0.05 percentage points.{2Indiana General Assembly. Indiana Code 6-3-2-1}
On top of the state rate, every Indiana filer owes a county income tax. The county that controls your rate is the one you lived in on January 1 of the tax year, and that choice sticks for the whole year even if you move. Rates vary across all 92 counties, from a low of 0.5% in Porter County to a high of 3.0% in Randolph County, with most falling between 1% and 2.5%.{3Indiana Department of Revenue. Indiana County Income Tax Rates and County Codes} The Department of Revenue publishes the full county schedule each year in Departmental Notice #1. The county tax is calculated separately and added to your state liability on the same return.
Who Files and Which Form
Anyone who lived in Indiana and had income during the year needs to file, and so do nonresidents who earned Indiana-sourced income. Your residency status for the year determines the form.
- Form IT-40 if you (and your spouse, if filing jointly) lived in Indiana the entire year.
- Form IT-40PNR if you were a part-year resident, a nonresident with Indiana income, or filing jointly with one full-year resident and one who was not.{}4Indiana Department of Revenue. IT-40PNR Part-Year and Full-Year Nonresident Individual Income Tax Booklet
- Form IT-40RNR, a shorter nonresident form, if your only Indiana income came from wages, salaries, tips, or similarly simple sources.
All three forms are available on the Department of Revenue website or inside INTIME.
Deductions, Exemptions, and Credits
Indiana starts with your federal adjusted gross income and then applies its own set of modifications. A few are worth knowing before you file, because they can meaningfully shrink what you owe.
Personal and Dependent Exemptions
Every taxpayer and spouse on a joint return gets a $1,000 exemption. Each dependent is worth another $1,000, with an added $500 for a qualifying child under 19 (or a full-time student under 24). The first year you claim a new dependent child, that added amount is $1,500 instead. Adopted children under 19 qualify for a $3,000 exemption. Filers who are 65 or older or blind can claim an extra $500 if their federal adjusted gross income is under $40,000, or $20,000 if married filing separately.{5Indiana General Assembly. Indiana Code 6-3-1-3.5}
Renter’s Deduction
If you rented your main home in Indiana, you can deduct up to $3,000 of the rent you paid during the year.{6Indiana General Assembly. Indiana Code 6-3-2-6} It is one of the most commonly missed deductions and does not require special documentation beyond knowing the total you paid.
Homeowners and Other Common Items
Homeowners can deduct a portion of the property taxes paid on an Indiana residence. On the other side of the ledger, Indiana requires you to add back any state income tax deductions you claimed on your federal return, which is a frequent surprise for filers comparing the two numbers. Other deductions cover certain disability retirement income, civil service annuities, and contributions to Indiana 529 college savings plans.{5Indiana General Assembly. Indiana Code 6-3-1-3.5}
Unified Tax Credit for the Elderly
Low-income residents 65 or older may qualify for a small credit of $40 to $140. You must have lived in Indiana at least six months during the year, and household federal adjusted gross income must be under $10,000.{7Indiana General Assembly. Indiana Code 6-3-3-9} The highest amounts go to the lowest-income households and to couples where both spouses are 65 or older.
When to File and Pay
The 2025 Indiana return and any tax owed are due April 15, 2026.{8Indiana Department of Revenue. Individual Income Tax Filings Open} If you need more time, filing a federal extension automatically extends your Indiana deadline, or you can submit Indiana Form IT-9. Either route moves the filing deadline to November 16, 2026.{9Indiana Department of Revenue. Extension of Time to File}
An extension to file is not an extension to pay. Interest starts accruing on any unpaid balance after April 15 regardless of whether you have a valid extension. The Department of Revenue will waive late-filing penalties if you pay at least 90% of what you owe by April 15 and clear the rest, plus interest, by November 16.{9Indiana Department of Revenue. Extension of Time to File}
Estimated Payments for Self-Employed and Investment Income
If you have income that isn’t subject to withholding and expect to owe $1,000 or more in combined state and county tax, you need to make quarterly estimated payments.{10Indiana Department of Revenue. Payment of Indiana Estimated Tax by Individuals} The 2026 deadlines are April 15, June 15, September 15, and January 15, 2027. You can skip the January payment if you file your full return and pay any balance due by February 1, 2027. Each quarterly payment should cover at least 20% of the current year’s total tax or 25% of the prior year’s tax, whichever is less. Short payments trigger an underpayment penalty.{11Indiana General Assembly. Indiana Code 6-3-2.1-6}
How to File
INTIME, the Department of Revenue’s online portal, is the fastest option. You create an account, enter your information, sign electronically, and get immediate confirmation of any payment. Electronic returns are generally processed in two to three weeks.{12Indiana Department of Revenue. INTIME}
If you file on paper, the address depends on whether you are enclosing a payment. Returns with a payment go to Indiana Department of Revenue, P.O. Box 7224, Indianapolis, IN 46207-7224. Returns without a payment go to P.O. Box 40, Indianapolis, IN 46206-0040. Paper returns can take up to eight weeks to process.{13Indiana Department of Revenue. IT-40 Full Year Resident Individual Income Tax Booklet} However you file, you can check refund status on the Department of Revenue website with your Social Security number and the exact refund amount.
If You Can’t Pay or Miss the Deadline
Indiana charges a flat 10% penalty on any tax not paid by the deadline, whether you filed late or paid short on a timely return. If you don’t file at all and the department has to prepare a return for you, the penalty is 20% of the unpaid tax. Deliberate evasion carries a 100% penalty. The total penalty cannot exceed 100% of the unpaid tax, and the minimum is $5.{14Justia. Indiana Code Title 6, Article 8.1, Chapter 10}
Interest runs on top of the penalty. The rate is recalculated each year based on the average investment yield on state general fund money plus two percentage points, and the current figure appears in Departmental Notice #3. If you missed a deadline for a legitimate reason, you can request a penalty waiver by submitting a written explanation under penalty of perjury showing reasonable cause. The department can waive the penalty but not the interest.
Installment Plans
If you owe more than $100 and can’t pay in full, you can set up a monthly installment plan through INTIME once your return is processed. The maximum length depends on the balance:{15Indiana Department of Revenue. Payment Plans}
- $100 or less: no plan available; pay in full.
- $101 to $1,000: up to 12 months.
- $1,001 to $5,000: up to 24 months.
- $5,001 and above: up to 36 months.
Interest keeps accruing on any unpaid balance while the plan is active. If you pick up a new liability while already on a plan, you have to contact the Department of Revenue to fold it in rather than start a second plan.