How Indiana compares
Ranked against the other 49 states on the figures we hold. Rates that combine state and local components — sales tax, the minimum wage where it varies by region — are shown on this page but not ranked, because a single number would misstate them.
| Figure | IN | Nationally | In its region |
|---|---|---|---|
| PopulationUS Census Bureau, Vintage 2025 estimates, July 1, 2025 | 6,973,333 | 17th highest of 50 | 4 of 12 |
| GDP ($bn)Bureau of Economic Analysis, 2025 | 545.2 | 19th highest of 50 | 4 of 12 |
| Median household incomeUS Census Bureau, ACS 2024 1-year, 2024 | $71,959 | 41st highest of 50 | 11 of 12 |
| Unemployment rateBureau of Labor Statistics, LAUS (seasonally adjusted, preliminary), September 2026 | 3.4% | tied 14th lowest of 50 | 6 of 12 |
| Foreign-born shareUS Census Bureau, ACS 2024 1-year, 2024 | 7.0% | 29th highest of 50 | 6 of 12 |
| Property tax ratechecked Nov 2026; confirm with the Indiana legislature | 0.75% | tied 16th lowest of 50 | 1 of 12 |
| Deposit return window (days)checked Nov 2026; confirm with the Indiana legislature | 45 | tied 44th lowest of 50 | 11 of 12 |
| Eviction notice (days)checked Nov 2026; confirm with the Indiana legislature | 10 | tied 13th highest of 50 | 2 of 12 |
| Final pay deadline (days)checked Nov 2026; confirm with the Indiana legislature | 10 | 25th lowest of the 29 states that set one | 5 of 8 |
- State income tax: yes41 of 50 states answer the same way
- At-will employment: yesthe same in all 50 states — it does not set Indiana apart
- Paid sick leave required: no30 of 50 states answer the same way
- Paid family leave: no38 of 50 states answer the same way
- Workers' comp required: yes49 of 50 states answer the same way
- Rent control permitted: no46 of 50 states answer the same way
- Annual report required: yes43 of 50 states answer the same way
Statistical figures: US Census Bureau, Vintage 2025 estimates (July 1, 2025) · US Census Bureau, ACS 2024 1-year (2024) · Bureau of Economic Analysis (2025) · Bureau of Labor Statistics, LAUS (seasonally adjusted, preliminary) (September 2026) · SBA Office of Advocacy, 2025 Small Business Profiles (2025). Tax, wage, business and tenancy figures are recorded from state sources and were last checked on 2026-11-05 — confirm anything you are about to act on with the Indiana legislature.
What's changing in Indiana
Enacted changes with a fixed effective date. Contracts, payroll and leases signed now may run past these dates.
Coming up
- January 1, 2027Income tax scheduled to fall to 2.9%Source ↗
Took effect in the last 12 months
- January 1, 2026Income tax cut to 2.95%Source ↗
Checked against official sources on 2026-11-05.
How long you have in Indiana
The periods that decide whether something is on time. Days are calendar days unless the underlying rule says otherwise.
- Return a security deposit within
- 45 days
- Eviction notice before filing
- 10 days
- Final paycheck within
- 10 days
- LLC formation processed in
- 2-3 business days
- Overtime starts after
- 40 hrs/week
AI Legal Insights — Indiana
AI-generated · Updated July 2026
Indiana operates under an at-will employment doctrine, meaning employers and employees can generally terminate the relationship at any time for any lawful reason. The state's legal framework is characterized by a predictable judicial system and a relatively streamlined regulatory environment.
With a flat income tax of 3.05% and a moderate sales tax of 7.0%, Indiana offers a competitive fiscal landscape for enterprises. The state supports a robust small business sector, currently home to approximately 560,000 small businesses.
The foreign-born population in Indiana accounts for 5.3% of the total population. This demographic contributes to the state's diverse workforce and growing economic landscape.
- ›Ensure all employment agreements clearly outline at-will status to avoid ambiguity.
- ›Verify compliance with federal minimum wage standards as Indiana follows the $7.25 federal rate.
- ›Include specific clauses regarding property tax assessments if entering real estate ventures.
AI-generated insights · Verify with a licensed attorney before relying on this information.
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Employment Laws
Indiana labor regulations
Indiana is an at-will, right-to-work state with worker protections that largely mirror federal law. The state minimum wage matches the federal floor of $7.25/hr, with no increase scheduled. Indiana does not mandate paid sick leave or paid family leave — employees rely on the federal FMLA (unpaid) and employer policies. Workers' compensation is required for nearly all employers. Separated employees must be paid their final wages by the next regular payday.
| Law | IN Rule | Federal Floor |
|---|---|---|
| Minimum Wage | $7.25/hr (matches federal floor; no state increase scheduled) | $7.25/hr |
| Overtime | After 40 hrs/week at 1.5× rate (mirrors FLSA) | FLSA: after 40 hrs/week |
| Paid Sick Leave | No state mandate; employer discretion | None (federal) |
| Paid Family Leave | No state program; FMLA applies | FMLA: 12 weeks unpaid |
| Workers Comp | Mandatory for employers with 1+ employee | Federal employees: yes |
| At-Will Employment | Yes; limited statutory and public-policy exceptions | Default nationwide |
| Final Paycheck | By the next regular payday after separation | No federal requirement |
| Pay Timing | Wages must be paid at least semi-monthly or bi-weekly if requested, and within 10 business days after the end of the pay period | No federal requirement |
| Meal Breaks | Required for minors; no mandate for adults | No federal requirement |
| Child Labor | Hours and hazardous-work limits for minors under 18 | FLSA child labor standards apply |
- Indiana has been a right-to-work state since 2012 — employees cannot be required to join a union or pay union dues as a condition of employment.
- The Indiana Civil Rights Law prohibits employment discrimination based on race, color, religion, sex, national origin, disability, and ancestry.
- Employees who are not paid wages owed can recover liquidated damages and attorney fees under the Indiana Wage Payment Statute.
- Indiana has no general non-compete statute; courts apply a reasonableness test for scope, geography, and duration, and special restrictions apply to physician non-competes.
- Indiana runs its own state OSHA plan (IOSHA) for private-sector and public employers.
Sources: U.S. Department of Labor state minimum wage table · state labor agencies (checked Nov 2026)
Landlord-Tenant Laws
Indiana rental regulations
Indiana landlord-tenant law generally favors landlords. There is no statutory security deposit cap, local rent control is not allowed, and eviction procedures are relatively swift. Landlords must return deposits within 45 days of move-out with an itemized statement. A 10-day notice to pay or vacate is required before filing for non-payment. Tenants retain habitability rights and protection against retaliation.
| Topic | IN Rule |
|---|---|
| Security Deposit | No statutory limit; the amount is set by the lease |
| Deposit Return | Within 45 days after the tenancy ends and the tenant provides a forwarding address, with an itemized list of deductions; a landlord who fails to itemize may have to return the full deposit plus attorney fees |
| Rent Control | Local rent control is prohibited by state law |
| Eviction Notice (Non-Payment) | 10-day notice to pay or vacate before the landlord may file for eviction |
| Month-to-Month Termination | At least 1 month's written notice by either party |
| Habitability | Landlord must deliver and keep the unit safe, clean, and habitable and keep essential systems working; tenants can seek remedies in court after giving notice |
| Retaliation Protection | Landlord may not retaliate against a tenant for reporting code violations or habitability issues to authorities |
| Late Fees | Permitted if specified in the lease; no statutory cap |
| Self-Help Eviction | Lockouts, utility shutoffs, and removing a tenant's property without a court order are prohibited |
Both landlords and tenants have enforceable rights under Indiana law. Document all communications and keep copies of your lease agreement. Use AI review to spot risky clauses before signing.
Starting a Business
Indiana LLC formation guide
Indiana is a business-friendly state with a flat 2.95% individual income tax in 2026 (scheduled to fall to 2.9% in 2027), a 4.9% corporate rate, and no business inventory tax. Counties add their own local income tax. Its location at the intersection of major interstates makes it a logistics and manufacturing hub, with an economy of about $545 billion and roughly 592,000 small businesses. LLC formation costs $95 online ($100 on paper), and the Business Entity Report costs $31 online every two years. The Indiana Economic Development Corporation offers tax credits and grants for qualifying projects.
Step-by-step LLC formation
- 1Choose a business name — must include "LLC", "L.L.C.", or "Limited Liability Company"; check availability at inbiz.in.gov
- 2File Articles of Organization with the Indiana Secretary of State through the INBiz online portal at inbiz.in.gov
- 3Pay the LLC formation fee — $95 online or $100 by paper filing
- 4Designate a registered agent — must have a physical Indiana street address (no P.O. boxes); may be an individual or registered agent service
- 5Get an EIN from the IRS — free at irs.gov; required for banking, hiring, and Indiana tax registration
- 6Register for Indiana business taxes with the Department of Revenue through INBiz — covers sales tax, withholding, and other applicable taxes
- 7File the Business Entity Report every two years with the Secretary of State — $31 online, due by the end of the anniversary month of formation
- 8Open a business bank account using your EIN and filed formation documents
- 9Check local business license requirements with your county or city clerk — requirements vary by municipality and industry
- 10Contact the Indiana Economic Development Corporation (iedc.in.gov) to explore available tax credits and incentives
Every LLC also needs a free EIN from the IRS (Form SS-4). Apply online at irs.gov — takes about 15 minutes and is required to open a business bank account.
Popular IRS Forms
Most-filed federal forms for Indiana taxpayers
Fill these out online with plain-English guidance — every field explained, no accountant required. Download as a ready-to-file PDF when done.
The main annual federal income tax return every taxpayer files.
Fill out free →Give your SSN or EIN to a client before getting paid as a contractor.
Fill out free →Report $600+ paid to independent contractors during the year.
Fill out free →Tell your employer how much federal tax to withhold from pay.
Fill out free →Report income and expenses from a sole proprietorship or LLC.
Fill out free →Report payroll taxes withheld from employees each quarter.
Fill out free →Get an automatic 6-month extension to file your 1040.
Fill out free →The year-end wage statement employers issue to each employee.
Fill out free →Review Your Indiana Contract — Free
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Federal Offices
United States government offices in Indiana
Walk-in assistance by appointment only. Call (844) 545-5640 to schedule, or book online at irs.gov.
Immigration appointments via my.uscis.gov or call (800) 375-5283.
Free Legal Aid
Indiana legal assistance organizations
These organizations provide free or reduced-cost civil legal services to qualifying Indiana residents.
Statewide civil legal aid for low-income Hoosiers
Civil legal help for low-income Marion County residents
Pro bono civil legal services for the Evansville region
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Free AI contract review →Latest Tax & Business News
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