Indiana tax filing: file IN state taxes online, Form IT-40, flat 3% plus county tax

Do you have to file an Indiana tax return?

You must file an Indiana return for 2025 if your gross income exceeds the total exemptions you can claim. Because Indiana uses no standard deduction, that filing point is set by your exemptions rather than a flat threshold. Full-year residents file Form IT-40; part-year residents and nonresidents with Indiana-source income file Form IT-40PNR.

A qualifying child is therefore worth $2,500 in exemptions ($1,000 base plus $1,500 extra). The rules are published by the Indiana Department of Revenue, and the state tax filing pillar compares Indiana with the other states.

Indiana state rate plus your county income tax

Indiana taxes income at a flat 3.00 percent for 2025, down from 3.05 percent, with scheduled cuts to 2.95 percent in 2026 and 2.90 percent in 2027. On top of the state rate, your county charges its own local income tax, assessed on the same Indiana adjusted gross income and filed on Schedule CT-40. Your county is the one where you lived on January 1, 2025.

Across all 92 counties the 2025 rates range from 0.5 percent to 2.95 percent. Add your county rate to the 3 percent state rate to get your total Indiana income tax rate. A resident of Indianapolis, for example, pays 3.00 plus 2.02, or 5.02 percent. TaxFile applies the correct county rate automatically from your county of residence.

Social Security, retirement and Indiana credits

Indiana does not tax Social Security or railroad retirement benefits; you subtract them to the extent they were taxed federally. Military pay and retirement get especially good treatment.

Indiana offers a state Earned Income Credit worth 10 percent of the federal EITC, claimed on Schedule IN-EIC, and a Unified Tax Credit for the Elderly of $40 to $140 for low-income residents age 65 and older. Because the county tax rides on the same return, filing the IT-40 correctly settles both your state and local income tax in one step. TaxFile applies the credits you qualify for automatically.

Indiana filing deadline, extension and filing online

Indiana's deadline is April 15, 2026 for tax year 2025 returns, matching the federal date. Indiana automatically honors a valid federal extension (IRS Form 4868), which gives you until November 16, 2026 to file, with no separate state form required. If you do not have a federal extension, you file Form IT-9 by April 15.

The extension moves the filing date, not the payment date. Pay at least 90 percent of the tax by April 15, 2026 to avoid a late-payment penalty, with the balance and interest due by November 16. Filing electronically is the practical default, and the Indiana return builds on your federal figures. TaxFile prepares both from one pass:

• Upload or talk. Drop in your W-2s and 1099s and it reads them, or describe your year and it asks what it needs.
• Federal and Indiana together. One set of documents produces both returns, with the flat state rate, your county rate, and the exemptions applied.
• Credits checked. It applies the Social Security subtraction, the military deduction, and the 10 percent state EITC where they fit.
• Error check, then you approve. Nothing is e-filed until you review and approve every line, through an authorized IRS e-file provider.

Pricing is $39 for a simple return, $89 self-employed, $199 business, plus $19 for each state return. There is no free tier. If your Indiana income comes from contract or freelance work, self-employed tax filing covers Schedule C and Schedule SE in more detail. TaxFile does not e-file federal extensions or prepare amended returns, and does not handle capital gains on Schedule D, rental income on Schedule E, or cryptocurrency. TaxFile is self-prepared tax software and does not provide personalized tax advice, and no refund amount is guaranteed.