Indiana imposes a flat 4.9% corporate income tax and 7% sales tax. Indianapolis does not levy a separate gross-receipts or business license tax. Marion County collects business personal property tax, capped at the state rate, on equipment over $80,000 in cost.
Indiana sets corporate income tax at a flat 4.9% (IC 6-3-2-1) — among the lowest in the Midwest — and the state sales tax at 7%. Indianapolis does not impose a gross-receipts tax or local business license tax beyond regulatory permits. The Marion County Assessor administers business personal property tax on equipment, machinery, and inventory, with the state-mandated $80,000 cost-basis exemption (IC 6-1.1-3-7.2) shielding small businesses from filing. Indiana also imposes a state-collected food and beverage tax of 1% in Marion County (IC 6-9-12) on prepared meals. The local-option income tax (LOIT) on individuals stands at 2.02%.
Failing to register with the Indiana Department of Revenue, missing personal-property filings with the Marion County Assessor, or failing to remit food and beverage tax. Indiana DOR penalties include interest and tax-warrant collection.
See how Indianapolis's business tax classification rules stack up against other locations.
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