Indiana

Moving from Georgia to Indiana would RAISE your total state and local tax burden from 8.9% of income to 9.5% of income — an increase of +0.6 pts. On a $100K household budget, that is roughly $600 more per year in combined state and local taxes.

Indiana top marginal income tax rate is 3.00%, versus 5.19% in Georgia. Compare across your expected income bracket — top rates kick in at different thresholds in each state.

Indiana state sales tax is 7.00%. With average local add-ons, the combined rate is 7.00%. This applies to most retail purchases but rules on groceries, prescriptions, and services vary.

Indiana median effective property tax rate is 0.75% of home value. On a $400,000 home, that is roughly $3,000/year. Property tax typically funds schools, municipalities, and county services — rates vary sharply within a state by school district.

Indiana has NO state estate tax and NO state inheritance tax. Heirs are subject only to federal estate tax (over $13.99M in 2025). This is favorable for wealth transfer.

In Indiana: Social Security is not taxed. Pensions and 401(k)/IRA withdrawals are fully taxed.

Indiana capital gains treatment: Taxed at 3.00% flat rate as ordinary income. Compare to federal long-term capital gains rates (0%, 15%, or 20%) — some states offer preferential treatment for long-term holdings, while others tax capital gains as ordinary income.

Indiana gas tax is 34.0¢/gal — 1.8¢/gal higher than Georgia's 32.3¢/gal. For a 15,000 mile/year driver getting 25 mpg, each 1¢/gal of gas tax = about $6/year.

Indiana allows local income, occupational, or earnings taxes. All 92 counties levy a Local Income Tax (LIT) ranging from 0.5% to 3.0% on top of state rate. These are often overlooked but can add 1–3% to your effective rate.

Indiana residency rules: Domicile + 183-day presumption. Nonresident return required for Indiana-source income. To establish residency for tax purposes, typical steps include: update driver's license and vehicle registration, register to vote, file a homestead declaration, close home-state bank accounts where possible, and spend clearly more than 183 days in your new state. If your former state is aggressive (e.g., CA, NY, NJ, OR), keep documentation of every day spent in each state.

Indiana recent tax law changes: State rate cut to 3.00% in 2025 (from 3.05% in 2024 and 3.15% in 2023). Further cuts to 2.9% scheduled by 2027.

For the most current tax information in Indiana, visit the official source at https://www.in.gov/dor/. Tax laws change annually; verify rates and rules before making a permanent move. Consult a CPA for advice specific to your situation.