Residents of Indiana know that Hoosiers are "fortunate" enough to be charged Indiana state and local taxes on their income. The same is true for businesses; in addition, businesses also must pay taxes on real property they own (not inventory; Indiana abolished its inventory tax in 2007). When combined, these taxes can create a headache. It's important that you find solid Indiana state and local tax resources on which you can rely.
For businesses in Indiana, local tax resources can be confusing. In many areas, the local Indiana tax you pay doesn't just depend on your county, but also your township and even your school district. Not only do you need to know this for your business for tax purposes, but also for each of your employees to properly collect their Indiana state taxes. By finding solid Indiana state tax resources, you can make this chore much less worrisome.
When looking for information about Indiana state and local taxes, consider these points:
1. The amount of Indiana state and local tax you need to collect on your employees' income.
2. The Indiana state and local tax resource information on sales taxes.
3. The local Indiana tax resources available to you regarding property taxes.
Action Steps
The best contacts and resources to help you get it done
Verify the amount of Indiana state and local tax you should collect on your employees' income
When determining how much to deduct from your employees' payroll for Indiana state tax, resources are available to you that allow you to appropriately calculate this amount. The most important information you need for this calculation is your company's county Indiana tax rate, and the county of residence for your employee.
I recommend: PayPerShop.com makes a variety of Indiana state tax information available to you in one convenient place.
Collect the appropriate amount of Indiana state tax based on your sales
If your company sells durable goods, you are required by law to collect Indiana sales tax at the time of purchase. In Indiana, not only is the sales tax determined by your location, but also on the type of goods being sold in that specific location. There are several Indiana state taxes based on restaurant or hotel receipts in specific areas that may be important to your company.
I recommend: Due to the ever-changing information about Indiana state and local taxes on items sold, it's important to go straight to the
Indiana Department of Revenue's Sales Tax Information Bulletins.
Purchase Indiana property carefully after consulting Indiana local tax resources
Indiana property taxes seem to some to be fairly high. For businesses, this is even more true. Therefore, it's extremely important to scout the area where you want to purchase property carefully to ensure that you're purchasing in an area that has low property taxes.
I recommend: Indiana University provides a
statistical calculator for property taxes that allows you to see tax rates for a given geographic region over time.
Tips & Tactics
Helpful advice for making the most of this Guide
- If your company is in one Indiana county but one or more of your employees live in another, be sure they understand how county/local Indiana tax is calculated for non-residents of your company's county. County taxes are lower for out-of-county residents than residents, but still could cost the employee hundreds come mid-April.
The official source of Indiana State and Local Tax Resources is
the Indiana State and Local Tax Resources page at Business.com
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