Overall Rating for Taxes on Retirees: Least tax-friendly
State Sales Tax: State levy of 7%.
State Income Tax Range: The Hoosier State taxes income at a flat rate of 3.23%, but counties levy their own income taxes, at rates ranging from 0.2% (Vermillion County) to 3.38% (Pulaski County).
State Taxes on Social Security: Benefits are not taxed.
Property Taxes: The median property tax on Indiana’s median home value of $126,500 is $1,100.
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