Arizona vs Indiana Taxes: Income, Property & Sales

Does Arizona or Indiana have lower taxes? We answer that in a variety of ways below:

Arizona vs Indiana Income Tax Comparison

	Arizona	Indiana
Income Tax Rates & Thresholds	2.55%: $0-$28,653 2.98%: $28,654+	3.23%
Median Income	$73,450	$70,030
Income Tax Paid On Median Household Income	$10,779	$10,404
Income After Tax Based on Median Household Income	$62,671	$59,626

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Arizona vs Indiana Property Tax Comparison

	Arizona	Indiana
Average Property Tax Rate	0.39%	0.74%
Average House Price By State	$429,910	$232,390
Average Property Tax Owed Per Year	$1,677	$1,720
Income After Income Taxes & Property Taxes Based On Median State Household Income	$60,994	$57,906

Arizona vs Indiana Sales Tax Comparison

	Arizona	Indiana
Average State Sales Tax	5.60%	7.00%
Average Local Sales Tax Across the State	2.80%	0.00%
Average Combined Sales Tax Rate	8.40%	7.00%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,726	$3,788
Maximum Disposable Income Based on Median Household Income	$56,268	$54,118

After Tax Comparison Earning $40,000 Per Year Filing As Single

	Arizona	Indiana
Income Tax Owed	$3,741	$4,300
After Tax Income	$36,259	$35,700
Income After Income & Property Tax	$34,582	$33,980
Maximum Disposable Income After Income, Property & Sales Taxes	$31,903	$31,757

After Tax Comparison Earning $60,000 Per Year Filing As Single

	Arizona	Indiana
Income Tax Owed	$7,331	$7,873
After Tax Income	$52,669	$52,127
Income After Income & Property Tax	$50,992	$50,407
Maximum Disposable Income After Income, Property & Sales Taxes	$47,041	$47,110

After Tax Comparison Earning $80,000 Per Year Filing As Single

	Arizona	Indiana
Income Tax Owed	$12,494	$12,919
After Tax Income	$67,506	$67,081
Income After Income & Property Tax	$65,829	$65,361
Maximum Disposable Income After Income, Property & Sales Taxes	$60,728	$61,085

After Tax Comparison Earning $100,000 Per Year Filing As Single

	Arizona	Indiana
Income Tax Owed	$17,728	$17,965
After Tax Income	$82,272	$82,035
Income After Income & Property Tax	$80,595	$80,315
Maximum Disposable Income After Income, Property & Sales Taxes	$74,350	$75,061

After Tax Comparison Earning $100,000 Per Year Filing As Married Filing Jointly

	Arizona	Indiana
Income Tax Owed	$10,539	$11,646
After Tax Income	$89,461	$88,354
Income After Income & Property Tax	$87,784	$86,634
Maximum Disposable Income After Income, Property & Sales Taxes	$80,982	$80,967

After Tax Comparison Earning $150,000 Per Year Filing As Married Filing Jointly

	Arizona	Indiana
Income Tax Owed	$22,370	$23,316
After Tax Income	$127,630	$126,684
Income After Income & Property Tax	$125,953	$124,964
Maximum Disposable Income After Income, Property & Sales Taxes	$116,193	$116,789

After Tax Comparison Earning $200,000 Per Year Filing As Married Filing Jointly

	Arizona	Indiana
Income Tax Owed	$35,455	$35,931
After Tax Income	$164,545	$164,069
Income After Income & Property Tax	$162,868	$162,349
Maximum Disposable Income After Income, Property & Sales Taxes	$150,248	$151,728

After Tax Comparison Earning $250,000 Per Year Filing As Married Filing Jointly

	Arizona	Indiana
Income Tax Owed	$49,459	$49,465
After Tax Income	$200,541	$200,535
Income After Income & Property Tax	$198,864	$198,815
Maximum Disposable Income After Income, Property & Sales Taxes	$183,454	$185,809

FAQ

Does Arizona or Indiana have lower income taxes?

Arizona’s income tax falls into the following range:

• 2.55%: $0-$28,653
• 2.98%: $28,654+

Whereas Indiana’s income tax is the following 3.23%

Does Arizona or Indiana have lower property taxes?

Arizona has an average property tax rate of 0.39%

In comparison, Indiana has an average property tax rate of 0.74%

Does Arizona or Indiana have lower sales taxes?

Arizona has a state sales tax rate of 5.60% and an average local rate of 2.80% for a combined total rate of 8.40%.

In contrast, Indiana has a state sales tax rate of 7.00% and an average local rate of 0.00% for a combined total rate of 7.00%.

Do you get to keep more money in Arizona or Indiana?

Based on median household income after income, property and sales taxes Arizona gives you a maximum amount of disposable income of $56,268

In comparison, Indiana gives you $54,118.

More Comparisons:

Arizona vs Missouri
Arizona vs Maryland
Arizona vs Wisconsin
Arizona vs Colorado
Arizona vs Minnesota

Sources:

https://en.wikipedia.org/wiki/State_income_tax#Rates_by_jurisdiction

https://www.bankrate.com/real-estate/property-tax-by-state/#by-state

https://fred.stlouisfed.org/release/tables?eid=259515&rid=249

https://www.fool.com/the-ascent/research/average-house-price-state/

https://taxfoundation.org/data/all/state/2022-sales-taxes/

https://www.forbes.com/advisor/income-tax-calculator/