Taxes in Jackson County, Indiana

Indiana is one of only a few states in the nation to cut taxes by near 25% while maintaining its AAA CREDIT RATING.

Workers’ Compensation
Indiana boasts the lowest workers compensation rates in the Midwest and among the very lowest in the country.

  • Average rate for manufacturing is $2.46 per $100 of Indiana payroll

Inventory Tax
No inventory tax. (Indiana eliminated the inventory tax beginning in the tax year 2006.)

Electric Rates
Indiana’s costs for industrial electricity are the second lowest in the nation.

Corporate Income Tax
Reducing corporate income tax rate to $4.9% by 2021
July 2012    8.0%
July 2013    7.5%
July 2014    7.0%
July 2015    6.5%
July 2016    6.25%
July 2017    6.0%
July 2018    5.75%
July 2019    5.5%
July 2020    5.25%
July 2021    4.9%

Single-Sales Factor
Indiana has single-sales factor for apportioning corporate income tax. Indiana had determined its share of an interstate of international corporation’s taxable income by weighing the Indiana portion of a company’s property and the proportion of its employees in Indiana. The single-sales factor will calculate the Indiana portion based solely on the portion of a company’s sales in Indiana.

Individual Income Tax

  • Indiana’s personal income tax is 3.3% of federal adjusted gross income (with certain exemptions and deductions).  Tax rate with further reduce to 3.23% for 2016.
  • Jackson County Personal Income Tax is 1.6 percent.

Sales and Use Tax
Indiana’s Sales and Use Tax is calculated at a rate of 7 percent. In manufacturing, the following are exempt from the sales tax: raw materials, equipment, power, electricity, and utilities. Wholesale sales, items used directly in production, and sales made in interstate commerce are exempt. In addition, the purchase of research and development equipment is exempt from the tax.

Property Tax
Real and personal property tax is assessed at 100 percent of market value. Tax rates and exemptions vary among local jurisdictions. Business property tax rate 3% cap.

  • Average real property net rate is 2.15%
  • Average business personal property net rate is 2.48%

Unemployment Insurance

  • New employer rate 2.5%
  • Taxable wage base $9,500

Source: Indiana Economic Development Corporation
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