Indiana vs Kentucky Taxes: Income, Property & Sales

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

Indiana vs Kentucky Income Tax Comparison

	Indiana	Kentucky
Income Tax Rates & Thresholds	3.23%	5.00%
Median Income	$70,030	$55,880
Income Tax Paid On Median Household Income	$10,404	$7,680
Income After Tax Based on Median Household Income	$59,626	$48,200

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Indiana vs Kentucky Property Tax Comparison

	Indiana	Kentucky
Average Property Tax Rate	0.74%	0.60%
Average House Price By State	$232,390	$201,033
Average Property Tax Owed Per Year	$1,720	$1,206
Income After Income Taxes & Property Taxes Based On Median State Household Income	$57,906	$46,994

Indiana vs Kentucky Sales Tax Comparison

	Indiana	Kentucky
Average State Sales Tax	7.00%	6.00%
Average Local Sales Tax Across the State	0.00%	0.00%
Average Combined Sales Tax Rate	7.00%	6.00%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$3,788	$2,660
Maximum Disposable Income Based on Median Household Income	$54,118	$44,334

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

	Indiana	Kentucky
Income Tax Owed	$4,300	$4,865
After Tax Income	$35,700	$35,135
Income After Income & Property Tax	$33,980	$33,929
Maximum Disposable Income After Income, Property & Sales Taxes	$31,757	$32,008

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

	Indiana	Kentucky
Income Tax Owed	$7,873	$8,793
After Tax Income	$52,127	$51,207
Income After Income & Property Tax	$50,407	$50,001
Maximum Disposable Income After Income, Property & Sales Taxes	$47,110	$47,171

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

	Indiana	Kentucky
Income Tax Owed	$12,919	$14,193
After Tax Income	$67,081	$65,807
Income After Income & Property Tax	$65,361	$64,601
Maximum Disposable Income After Income, Property & Sales Taxes	$61,085	$60,944

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

	Indiana	Kentucky
Income Tax Owed	$17,965	$19,593
After Tax Income	$82,035	$80,407
Income After Income & Property Tax	$80,315	$79,201
Maximum Disposable Income After Income, Property & Sales Taxes	$75,061	$74,718

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

	Indiana	Kentucky
Income Tax Owed	$11,646	$13,081
After Tax Income	$88,354	$86,919
Income After Income & Property Tax	$86,634	$85,713
Maximum Disposable Income After Income, Property & Sales Taxes	$80,967	$80,861

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

	Indiana	Kentucky
Income Tax Owed	$23,316	$25,636
After Tax Income	$126,684	$124,364
Income After Income & Property Tax	$124,964	$123,158
Maximum Disposable Income After Income, Property & Sales Taxes	$116,789	$116,187

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

	Indiana	Kentucky
Income Tax Owed	$35,931	$39,136
After Tax Income	$164,069	$160,864
Income After Income & Property Tax	$162,349	$159,658
Maximum Disposable Income After Income, Property & Sales Taxes	$151,728	$150,621

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

	Indiana	Kentucky
Income Tax Owed	$49,465	$53,555
After Tax Income	$200,535	$196,445
Income After Income & Property Tax	$198,815	$195,239
Maximum Disposable Income After Income, Property & Sales Taxes	$185,809	$184,188

FAQ

Does Indiana or Kentucky have lower income taxes?

Indiana’s income tax falls into the following range: 3.23%

Whereas Kentucky’s income tax is the following 5.00%

Does Indiana or Kentucky have lower property taxes?

Indiana has an average property tax rate of 0.74%

In comparison, Kentucky has an average property tax rate of 0.60%

Does Indiana or Kentucky have lower sales taxes?

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%.

In contrast, Kentucky has a state sales tax rate of 6.00% and an average local rate of 0.00% for a combined total rate of 6.00%.

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

Based on median household income after income, property and sales taxes Indiana gives you a maximum amount of disposable income of $54,118

In comparison, Kentucky gives you $44,334.

More Comparisons:

Indiana vs Oregon
Indiana vs Oklahoma
Indiana vs Connecticut
Indiana vs Utah
Indiana vs Iowa

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/