The City of Crawfordsville, Indiana

Small City... Big Possibilities

Cost of Doing Business

Indiana’s Business Climate Overview

Our state is consistently recognized as a low tax state for business. We have no gross receipts tax and no inventory tax.

 

Corporate Income Tax

Indiana’s corporate adjusted gross income tax rate is continuing to decrease from the current 5.25% to a flat rate of 4.9% by July 1, 2021. This method of determination simplifies tax calculations for corporations and does not apply to S-corporations and not-for-profit organizations.

 Single-Sales Factor

Indiana now uses as single-sales factor for apportioning corporate income tax. The single-sales factor will calculate the Indiana portion based solely on the portion of a company’s sales in Indiana.

Sales and Use Tax Exceptions

Indiana’s Sales and Use Tax is calculated at a rate of 7 percent. 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.

 

Property Tax

Real and personal property tax is assessed at 100 percent of market value, with certain deductions and/or exemptions available. Property tax rates in Indiana vary among local jurisdictions but are capped at 3.0% for business property pursuant to state law. The rates for Montgomery County range from 3.75% - 1.403% with a median of 2.05%.

 

Individual Income Tax

Indiana’s personal income tax is 3.23 percent of federal adjusted gross income (with certain exemptions and deductions). Montgomery County's personal income tax is 2.30% for both county residents and non-residents. 

For additional information or questions, please contact Economic Development at cmorphew@crawfordsville-in.gov or (765) 364-5160.

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