Indiana
Our ranking: Tax-friendly
State income tax: Flat 3.23%
Average state and local sales taxes: 7%
Gas taxes and fees: 43 cents per gallon
The Hoosier State dropped its flat income tax a smidge in 2017, from 3.3% to 3.23%, but many counties in Indiana also impose their own income taxes, with an average levy of 1.56%, according to the Tax Foundation. The state sales tax is high, though municipalities don’t get to add to it.
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