Year after year, Indiana is consistently recognized for being pro-business. With a favorable legal and regulatory environment and growing workforce - Indiana is powered by a competitive environment. Indiana is a right-to-work state which offers Terre Haute as a competitive location for new business investment.
Indiana has the 8th most business friendly tax climate with its Corporate Income Tax Rate and is steadily decreasing each year, from the current 6.25% to 4.9% by 2021.
Other competitive tax incentives include:
- Property - Real and Personal Property Tax is assessed at 100% of market value with tax rates and exemptions varying among local jurisdictions. Indiana's property taxes are capped at 1% of a home's assessed value, apartments and agriculture land are capped at 2% of assessed value, and business property is capped at 3% of assessed value.
- Sales and Use Tax is calculated at a rate of 7%. In manufacturing, used in direct production of product, the following are exempt from the sales tax: raw materials, equipment, electrical energy, natural gas and other utility services. Wholesale items used directly in production and sales made in interstate commerce are exempt. In addition, the purchases of research and development equipment is exempt from the tax.
- Indiana has no Gross Receipts/Inventory Tax.
- For Gasoline and Diesel Fuel Tax, the combined federal, state and local tax on gasoline in Indiana is $0.61.4 cents per gallon. The combined federal state and local tax on diesel fuel in Indiana is $0.76.2 cents per gallon.
- Unemployment Insurance - The first $9,500 in wages paid to each employee are subject to this tax. The new employer premium rate for most industries, including manufacturing sector is 2.5%. Minimum and maximum experience rates are 0.5% and 7.4%, respectively.