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Indiana Tax Resources

Income Tax Rate: 3.4% Flat (Indiana has a Flat Income Tax Rate)
Governor: Mitch Daniels
Income Tax Revenue (2007): $14,008,033,000.00
Indiana Population 6,335,862

Indiana Mailing Address

Wondering where to mail your Indiana taxes? Here's the address:

If Enclosing Payment Mail To:
Indiana Department of Revenue
P.O. Box 7224, Indianapolis, IN 46207-7224.

Mail All Other Returns To:
Indiana Department of Revenue
P.O. Box 40, Indianapolis, IN 46206-0040



Indiana Tax Filing Guide

Here are detailed instructions for filing taxes in the state of Indiana.

Indiana Residents

You are a resident of Indiana if you maintained legal residence in Indiana from January 1st to December 31st. Legal residents don’t have to be physically present in Indiana the entire year as long as they leave only temporarily. Retirees may maintain full-year Indiana residency even if they leave several months a year if they intend to return to Indiana, retain a Indiana driver’s license, and retain Indiana voting rights.

If you are a full year resident whose gross income was more than your total exemptions you must file a tax return. Indiana residents must file a return using either Form IT-40 or Form IT-40EZ. Form IT-40EZ can be used if you claim no dependants and you have only Indiana income and withholding credits. If you do not qualify to file using Form IT-40EZ you will need to file your return using From IT-40. Both forms are attached below along with the IT-40 Instructional Book, which can be used to gather additional information.

Related Tax Forms

  • Form IT-40 - Indiana Individual Income Tax Return (The Long Form)
  • Form IT-40EZ - Indiana Individual Income Tax Return (The Shortest Form)

Indiana Residents who lived in Indiana for part of the year

If you were an Indiana resident for only part of the year or moved in or out of Indiana during the tax year you are a part-year resident. If you are a part-year resident who received income during the time that you were an Indiana resident you need to file Form IT-40PNR. If you received income from Indiana while you were a resident of a different state you need to file Form IT-40PNR. Form IT-40 PNR may also be used if you (and/or your spouse; pending you are filing jointly) were an Indiana resident for only part of the year and you will not qualify to file your return using Form IT-40 RNR.

Related Tax Forms

  • Form IT-40 RNR - Reciprocal Nonresident Indiana Individual Income Tax Return
  • Form IT-40 PNR - Indiana Income Tax Return for Part-Year Residents or Full-Year Indiana Nonresidents

Indiana Residents who work in another state

You are a resident of Indiana if you maintained legal residence in Indiana from January 1st to December 31st. Legal residents don’t have to be physically present in Indiana the entire year as long as they leave only temporarily. Retirees may maintain full-year Indiana residency even if they leave several months a year if they intend to return to Indiana, retain a Indiana driver’s license, and retain Indiana voting rights.

If you are a full year resident whose gross income was more than your total exemptions you must file a tax return. Indiana residents must file a return using either Form IT-40 or Form IT-40EZ. Form IT-40EZ can be used if you claim no dependants and have only Indiana income and withholding credits. If you do not qualify to file using Form IT-40EZ you will need to file your return using From IT-40. Both forms are attached below along with the IT-40 Instructional Book, which can be used to gather additional information.

If you are a Indiana resident that works in another state and you were taxed by the state you earned the income in you maybe able to claim 2 different types of credits; a credit for local taxes paid to a city, county, town, or other local governmental entity outside Indiana and a credit for state taxes paid to another state. The local credit can be found on Line 1 while the state credit can be found on Line 5.

Please note: If the state you work in was Kentucky, Michigan, Ohio, Pennsylvania, or Wisconsin you should not have to file taxes with these states due to reciprocal agreements. Your employer should withhold Indiana taxes because of the reciprocal agreements for Indiana. Should your employer withhold taxes for another state, not Indiana, however you need to make sure to have the withheld income released as no credit will be awarded from Indiana towards these states since you are not supposed to pay taxes to these states.

If the state you work in was Arizona, California, Oregon, or Washington D.C. you will not be awarded any Indiana credit because these states should not tax you at all. You should make sure you employer does not withhold taxes for these states since no credit will be awarded from Indiana towards these states.

If the state you work in was Alaska, Florida, Nevada, South Dakota, Texas, Washington, or Wyoming you will not be awarded any Indiana credit because these states have no income tax so you will need to pay Indiana tax on any income from these states.

Related Tax Forms

  • Form IT-40 - Indiana Individual Income Tax Return (The Long Form)
  • Form IT-40EZ - Indiana Individual Income Tax Return (The Shortest Form)

Nonresidents who work in Indiana

If you were a legal resident of a state besides Indiana (see exceptions below) but made income from an Indiana source listed below you will need to file a return with Indiana for that income.

Taxable income according to Indiana includes income from:

1. Winnings, gambling, or lotteries

2. Commission (salaries, wages, tips etc.)

3. Any business, partnership, or S corp. operating in Indiana

4. Any property in Indiana

5. Stocks, bonds, notes, bank deposits, patents, or any other intangible business property

7. Trusts and estates given to nonresident heirs

If your home state is Kentucky, Michigan, Ohio, Pennsylvania or Wisconsin and the only income you have received from Indiana sources is commission (see sources of income) you may file your return using Form IT-40RNR. However if you are from a different state or have income from a different source you need to file your return using Form IT-40PNR.

State Exceptions

1. If you live in Kentucky, Michigan, Ohio, Pennsylvania or Wisconsin you will not need to pay taxes to Indiana if your only source of income was commission but you will need to file Form IT-40RNR.

2. If the state you live in was Alaska, Florida, Nevada, South Dakota, Texas, Washington, or Wyoming you will have to file a return with Indiana because these states have no income tax so you will need to pay Indiana tax on any income made from Indiana sources.

3. If you are from Alabama, Arkansas, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virginia, West Virginia, or any foreign countries you will need to file a tax return with Indiana and receive credit from your home state to avoid dual taxation.

Related Tax Forms

  • Form IT-40 RNR - Reciprocal Nonresident Indiana Individual Income Tax Return
  • Form IT-40 PNR - Indiana Income Tax Return for Part-Year Residents or Full-Year Indiana Nonresidents

Nonresidents who sold property in Indiana

If you were a legal resident of a state besides Indiana (see exceptions below) but made income from an Indiana source listed below you will need to file a return with Indiana for that income.

Taxable income according to Indiana includes income from:

1. Winnings, gambling, or lotteries

2. Commission (salaries, wages, tips etc.)

3. Any business, partnership, or S corp. operating in Indiana

4. Any property in Indiana

5. Stocks, bonds, notes, bank deposits, patents, or any other intangible business property

7. Trusts and estates given to nonresident heirs

If your home state is Kentucky, Michigan, Ohio, Pennsylvania or Wisconsin and the only income you have received from Indiana sources is commission (see sources of income) you may file your return using Form IT-40RNR. However if you are from a different state or have income from a different source you need to file your return using Form IT-40PNR.

State Exceptions

1. If you live in Kentucky, Michigan, Ohio, Pennsylvania or Wisconsin you will not need to pay taxes to Indiana if your only source of income was commission but you will need to file Form IT-40RNR.

2. If the state you live in was Alaska, Florida, Nevada, South Dakota, Texas, Washington, or Wyoming you will have to file a return with Indiana because these states have no income tax so you will need to pay Indiana tax on any income made from Indiana sources.

3. If you are from Alabama, Arkansas, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virginia, West Virginia, or any foreign countries you will need to file a tax return with Indiana and receive credit from your home state to avoid dual taxation.

Related Tax Forms

  • Form IT-40 RNR - Reciprocal Nonresident Indiana Individual Income Tax Return
  • Form IT-40 PNR - Indiana Income Tax Return for Part-Year Residents or Full-Year Indiana Nonresidents

Indiana Tax Forms

  • Form IT-40 - Indiana Individual Income Tax Return (The Long Form)
  • Form IT-40EZ - Indiana Individual Income Tax Return (The Shortest Form)
  • Form IT-40 RNR - Reciprocal Nonresident Indiana Individual Income Tax Return
  • Form IT-40 PNR - Indiana Income Tax Return for Part-Year Residents or Full-Year Indiana Nonresidents
  • Form IT-9 - Application for Extension of Time to File
  • Schedule 1 - Indiana Deductions and Credits

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