Indiana Sales Tax Calculator
Calculate sales tax in Indiana. The IN state sales tax rate is 7%. Add local rates for your total sales tax. Free calculator with instant results.
Indiana at a Glance
$220,000
Median Home Price
0.81%
Property Tax Rate
$1,400
Avg Home Insurance
$472,030
FHA Loan Limit
Loading calculator
Preparing Indiana Sales Tax Calculator...
Reviewed & Methodology
Every calculator is built using industry-standard formulas, validated against authoritative sources, and reviewed by a credentialed financial professional. State-specific data is sourced from official government publications.
Sales Tax Calculator in Indiana
The median home price in Indiana is $220,000, which is 48% below the national average of $420,000. Indiana's effective property tax rate of 0.81% is 0.29 percentage points lower than the national average of 1.1%.
| Metric | Indiana (IN) | National Avg | vs National Average |
|---|---|---|---|
| Median Home Price | $220,000 | $420,000 | -48% |
| Property Tax Rate | 0.81% | 1.1% | -0.29% |
| Home Insurance (Annual) | $1,400 | $2,300 | -39% |
| State Sales Tax | 7% | 5% | +2.0% |
| FHA Loan Limit | $472,030 | $472,030 | Standard |
| Conforming Loan Limit | $766,550 | $766,550 | Standard |
Indiana offers a homestead exemption of $48,000, which reduces the taxable value of your primary residence. The state uses an assessment ratio of 100% to determine the assessed value for property tax purposes.
Homeownership in Indiana
Indiana offers genuinely affordable homeownership, with a statewide median around $220,000 and strong buyer protections in the form of a circuit breaker cap limiting property taxes to 1% of assessed value for primary residences. The state's economy has diversified from its manufacturing roots and now includes life sciences (Eli Lilly is headquartered in Indianapolis), logistics, and tech. Indianapolis has been one of the more affordable Midwest metros even as it attracts corporate relocations.
Tips for Indiana Homebuyers and Homeowners
- Indiana's property tax circuit breaker is one of its most buyer-friendly laws -- taxes on a primary residence cannot exceed 1% of the assessed value, regardless of local millage rates.
- The Supplemental Homestead Deduction reduces assessed value by 35% on the first $600,000 of residential value, then 25% above that -- on a $220,000 home, the deduction is $77,000.
- Indiana has a flat 3.05% state income tax rate -- one of the lowest flat rates in the country, making take-home pay predictably higher than in many neighboring states.
- Local income taxes (COIT/EDIT) vary by county and can add 1-3% on top of the state rate -- factor in the combined rate when comparing counties for your home search.
Indiana Programs and Assistance
- Indiana Housing and Community Development Authority (IHCDA) Next Home Program -- provides 3.5% down payment assistance as a forgivable second mortgage for first-time and repeat buyers.
- IHCDA Helping to Own (H2O) Program -- offers lower down payment amounts and mortgage insurance options for buyers with limited savings.
- Mortgage Credit Certificate (MCC) through IHCDA -- allows a federal tax credit of 20% of annual mortgage interest paid, reducing tax liability each year.
Did you know? Indiana's property tax circuit breaker, passed via constitutional amendment, guarantees that homeowners never pay more than 1% of assessed value in property taxes -- a protection that is unique among U.S. states.