Indiana Taxes

Indiana State Taxes - 4 Basic Facts Indiana Residents Must Know

Author: Abhishek Agarwal


Read this article to get a lot of information about the state taxes of Indiana. Indiana levies taxes at the rate 3.4 percent of your federal adjusted gross income. You can also asses your income tax separately.



From December 2002, the Indiana state sales tax became six percent.



1. Due Date to File Returns



In Indiana, the due date for filing tax returns is April 15 of every financial year. If the due date comes on a holiday or a weekend, it is shifted to the next working day. During the financial year 2007, the due date was shifted to April 17, a Tuesday.



The taxpayers in Hoosier State also get an extra day to file their taxes. Residents of Indiana can pay their income taxes at the county level as well.



2. Real and Personal Property Taxes



The Department of Local Government Finance administers taxes imposed on personal as well as real property. Usually, tax rates are calculated in dollars for every hundred dollars of assessed value. A number of taxing units, such as schools, townships, cities, libraries, counties, towns, and so on can issue a tax on property. This means that the total rate of taxes is equal to the sum of the rates imposed by all the taxing units in which the property is located.



The Two Percent Circuit Breaker Law was enacted in Indiana in the year 2006. As soon as this law comes into effect, it will ensure that the tax on the value of the properties of house owners would not be higher than two percent. The Circuit Breaker is believed to become compulsory in 2007 for all residential properties in the state. It is believed to include all types of property in 2009.



In accordance with the advalorem property tax for local or state purposes, owners of aircraft have to pay registration fees and aircraft excise taxes.



3. Estate and Inheritance Taxes



A personal representative of an estate should file IH-6, an inheritance tax return, within nine months of the death of a resident of Indiana. In case the heir is a spouse or a charitable institution, there is no need to pay this tax, provided the amount inherited is lower than the exempted amount, ranging from the entire estate to $100 for individual beneficiaries.



4. More about Taxes in Indiana



Qualified taxpayers of Indiana can file their taxes at i-File, a website of the Indiana Department of Revenue, which offers tax filing services free of cost. For extra information on the taxes in Indiana, visit the website of the Indiana Department of Revenue.

Article Source: http://www.articlesbase.com/taxes-articles/indiana-state-taxes-4-basic-facts-indiana-residents-must-know-708577.html

About the Author

Abhishek is a Tax Consultant and he has got some great tips on Filing And Understanding Taxes! Download his FREE 84 Pages Ebook, "Taxes Made Easy!" from his website http://www.taxes-guru.com/777/index.htm. Only limited Free Copies available.