1/21/2024 0 Comments Indiana income tax brackets 2021![]() The state does not levy any local sales taxes, meaning that the average combined sales tax was 7 percent. Indiana's state sales tax was 7 percent in 2015. Additionally, many states allow the levying of local sales taxes, which are then added to the state's tax. Source: Tax Foundation, "The High Burden of State and Federal Capital Gains Tax Rates," accessed September 29, 2015Īlmost all states employ a statewide sales tax, which ranges from 2.9 percent in Colorado to 7.5 percent in California. Uppermost capital gains tax rates by state, 2015 The table below summarizes uppermost capital gains tax rates for Indiana and neighboring states in 2015. The combined uppermost federal and state tax rates totaled 27.8 percent, ranking 33rd highest in the nation. In Indiana, the uppermost capital gains tax rate was 3.4 percent. While the federal government taxes capital gains at a lower rate than regular personal income, states usually tax capital gains at the same rates as regular income. Capital gains are taxable at both the federal and state levels. Examples of capital assets include stocks, businesses, land parcels, homes, personal items and more. Personal exemptions, 2015Ĭapital gains tax See also: Capital gains taxĪ capital gains tax is a tax levied on the profit gleaned from the sale of a capital asset. These exemptions were equal to about $2,500 in 2015. Indiana regulations also allow filers to receive exemptions for dependents. Exemptions for those filing as a married couple were equal to $2,000 in 2015. In Indiana, state personal exemptions for single filers were equal to $1,000, which was second lowest among its neighbors that allowed for personal income tax exemptions. The state exemptions for Indiana and its neighboring states as reported by the Tax Policy Center are reported in the chart below. Both state and federal taxes allow exemptions. Įxemptions work by reducing the amount of an individual's taxable income. The personal exemption indicates that only a person's income above a certain level is subject to taxation. States that collect a personal income tax allow individuals to claim personal exemptions on income taxes each year. Source: Tax Policy Center, "Individual State Income Tax Rates 2000-2015," accessed September 29, 2015 Note: For complete notes and annotations, please see the source below. Because some states are excluded from the rankings and a few share common uppermost rates, there are 34 numerical rankings, with 1 indicating the highest uppermost rate and 34 indicating the lowest. Numerical rankings are tabulated by excluding states with no personal income tax (as well as New Hampshire and Tennessee, which charge income tax only on dividends and interest) and are based on the highest possible tax rate for which an individual might be liable. The table below summarizes personal income tax rates for Indiana and neighboring states in 2015. Indiana utilizes a flat personal income tax rate of 3.3 percent in determining an individual's personal income tax liability. Tax rates Personal income tax See also: Personal income tax The state's tax revenues per capita were $2,554, ranking 27th highest in the United States. In 2014, according to the Federation of Tax Administrators, Indiana collected $16.847 billion in tax revenues. The primary types of taxes levied by state governments include personal income tax, general sales tax, excise (or special sales) taxes and corporate income tax. The rest comes from non-tax sources, such as intergovernmental aid (e.g., federal funds), lottery revenues and fees. Tax collections comprise approximately 40 percent of the states' total revenues. States levy taxes to help fund the variety of services provided by state governments. The state derives its constitutional authority to tax from Article 10 of the state constitution. Indiana generates the bulk of its tax revenue by levying a personal income tax, a general sales tax and select sales taxes (otherwise known as excise taxes). ![]() For more current information regarding tax policy, click here. The historical Indiana tax policy information below is presented as it was written on Ballotpedia in 2015. If you would like to help our coverage grow, consider donating to Ballotpedia. This article does not contain the most recently published data on this subject.
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