New ratings are out for the state of Indiana and their tax climate.
TaxFoundation.org had this to say about the Hoosier state:
Indiana saw consistent rate reductions through a series of responsible tax reform efforts between 2011 and 2016. Subsequent legislation established a further schedule of corporate income tax reductions through fiscal year 2022. For 2018, the corporate income tax rate declined from 6.25 to 6.0 percent. These changes, however, were not enough to improve Indiana’s already enviable ranking on the Index, where the Hoosier State and Utah are functionally tied for the best rankings among states which impose all the major taxes.
Here’s more from Indiana Economic Digest:
The Tax Foundation rankings draw on 114 tax variables sorted into five components — income tax, sales tax, corporate tax, property tax and unemployment insurance tax — which then are weighted to reach a component and final score and rank for each of the 50 states and Washington, D.C.
Ironically, Indiana’s sales tax rank, which includes fuel and other excise taxes, improved two spots to ninth in the country, notwithstanding the gas tax hike approved by the Republican-controlled General Assembly and Republican Gov. Eric Holcomb.
The Tax Foundation also credited Indiana for not allowing local sales taxes to be stacked on top of the 7 percent state rate, for having a broad sales tax base with few exemptions and for not taxing business inputs so only the ultimate purchaser of a product pays sales tax.
Indiana ranked fourth in the country for property taxes, thanks in large part to its constitutionally mandated property tax caps of 1 percent on homesteads, 2 percent on rental property and farmland and 3 percent on business and industrial property.
The Hoosier State also ranked 10th for individual income tax and unemployment insurance tax, and 23rd for corporate income tax.
Hershman expects Indiana’s corporate income tax rank will improve in the years ahead as previously enacted tax cuts take the rate from the current 6 percent to 4.9 percent by 2021. The rate was 8.5 percent five years ago.