Retire in Indiana: 2026 Tax & Cost of Living Guide
Low flat income tax (3.05%), no Social Security tax, no estate or inheritance tax. Local county taxes add a small surcharge.
State income tax
Flat 3.05%
Social Security
Not taxed
Estate tax
None
Property tax
0.84%
How Indiana Taxes Retirement Income
- Social Security
- Not taxed
- Public pensions (state/federal)
- Taxed
- Private pensions
- Taxed
- 401(k) / IRA withdrawals
- Taxed
Exemption / exclusion
Data not yet verified for this state. Consult a state tax professional.
What Would You Pay in State Income Tax?
Rough estimates at the top marginal rate (actual effective rate will be lower for most retirees due to brackets, exemptions, and standard deduction):
| Annual Retirement Income | Estimated State Tax | Effective Rate |
|---|---|---|
| $50,000 | $1,525 | 3.0% |
| $100,000 | $3,050 | 3.0% |
| $200,000 | $6,100 | 3.0% |
We don't have detailed cost-of-living data for a city in Indiana yet. See our city guides for 300+ other cities worldwide, or compare Indiana against other US states below.
States With No Income Tax
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Tax rates and programs are subject to change. Data is current for 2024–2025. Always consult a qualified tax professional before making relocation decisions.