The State of Indiana's Tax Laws
The State of Indiana holds its residents and businesses liable for a number of taxes in order to gain revenue for public services. These taxes are calculated in a number of different areas, including property taxes, sales taxes, individual income and business income taxes. The specific amount of tax that an individual pays is related to his specific situation, such as property value or marital status.
Other People Are Reading
-
Individual Income Tax
-
You must file an individual income tax in Indiana if you live in Indiana and income exceeds tax exemptions or you live outside Indiana but had income sourced in Indiana. To determine an estimate of Indiana exemptions, figure $1,000 for each federal tax exemption, as well as $1,500 for each dependent child.
You may figure $1,000 for each person in the household 65 years or older, another $1,000 for each legally blind person, as well as $500 for each person over the age of 65 with a federal adjusted gross income under $40,000.
Sales Tax
-
As of April 1, 2008, the Indiana sales tax is set at seven percent. Some localities are liable for a food and beverage tax as well.
-
Property Taxes
-
Property taxes are mailed to tax payers annually by the County Treasurer. It is determined by multiplying the tax rate, which is issued in the Department of Local Government Finance's annual budget order to each county, and multiplied by the taxable appraised value of each property. Certain exemptions, such as the homestead exemption, may apply in individual cases.
Business Income Taxes
-
The state of Indiana also taxes business based upon the business type. Sole proprietors, general partnerships, corporations, limited liability corporations, S corporations, partnerships and limited liability partnerships are all responsible for business income taxes. Nonprofits are exempt providing they qualify by obtaining an exempt status with the state of Indiana.
-
References
- Photo Credit dollars image by peter Hires Images from Fotolia.com
