Tax Incentives

Workers’ Compensation

Indiana boasts the lowest workers compensation rates in the Midwest and among the very lowest in the country.

Average premium rate index is $1.05 per $100 of payroll. 

Inventory Tax

No inventory tax. 

 Electric Rates

Indiana’s costs for industrial electricity are the second lowest in the nation. 

 Corporate Income Tax

Indiana’s corporate adjusted gross income rate is 4.9%. 

Individual Income Tax

Indiana’s personal income tax is 3.23% of federal adjusted gross income (with certain exemptions and deductions).

Washington County Personal Income Tax is 2%. 

Sales and Use Tax

Indiana’s Sales and Use Tax is calculated at a rate of 7%. In manufacturing, the following are exempt from the sales tax: raw materials, equipment, power, electricity, and utilities. Wholesale sales, items used directly in production, and sales made in interstate commerce are exempt. In addition, the purchase of research and development equipment is exempt from the tax.