Texas vs Indiana Taxes: Income, Property & Sales

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

Texas vs Indiana Income Tax Comparison

	Texas	Indiana
Income Tax Rates & Thresholds	None	3.23%
Median Income	$74,640	$70,030
Income Tax Paid On Median Household Income	$9,189	$10,404
Income After Tax Based on Median Household Income	$65,451	$59,626

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Texas vs Indiana Property Tax Comparison

	Texas	Indiana
Average Property Tax Rate	1.25%	0.74%
Average House Price By State	$305,497	$232,390
Average Property Tax Owed Per Year	$3,819	$1,720
Income After Income Taxes & Property Taxes Based On Median State Household Income	$61,632	$57,906

Texas vs Indiana Sales Tax Comparison

	Texas	Indiana
Average State Sales Tax	6.25%	7.00%
Average Local Sales Tax Across the State	1.95%	0.00%
Average Combined Sales Tax Rate	8.20%	7.00%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,671	$3,788
Maximum Disposable Income Based on Median Household Income	$56,961	$54,118

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

	Texas	Indiana
Income Tax Owed	$3,040	$4,300
After Tax Income	$36,960	$35,700
Income After Income & Property Tax	$33,141	$33,980
Maximum Disposable Income After Income, Property & Sales Taxes	$30,630	$31,757

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

	Texas	Indiana
Income Tax Owed	$5,968	$7,873
After Tax Income	$54,032	$52,127
Income After Income & Property Tax	$50,213	$50,407
Maximum Disposable Income After Income, Property & Sales Taxes	$46,408	$47,110

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

	Texas	Indiana
Income Tax Owed	$10,368	$12,919
After Tax Income	$69,632	$67,081
Income After Income & Property Tax	$65,813	$65,361
Maximum Disposable Income After Income, Property & Sales Taxes	$60,826	$61,085

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

	Texas	Indiana
Income Tax Owed	$14,768	$17,965
After Tax Income	$85,232	$82,035
Income After Income & Property Tax	$81,413	$80,315
Maximum Disposable Income After Income, Property & Sales Taxes	$75,243	$75,061

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

	Texas	Indiana
Income Tax Owed	$8,481	$11,646
After Tax Income	$91,519	$88,354
Income After Income & Property Tax	$87,700	$86,634
Maximum Disposable Income After Income, Property & Sales Taxes	$81,054	$80,967

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

	Texas	Indiana
Income Tax Owed	$18,536	$23,316
After Tax Income	$131,464	$126,684
Income After Income & Property Tax	$127,645	$124,964
Maximum Disposable Income After Income, Property & Sales Taxes	$117,972	$116,789

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

	Texas	Indiana
Income Tax Owed	$29,536	$35,931
After Tax Income	$170,464	$164,069
Income After Income & Property Tax	$166,645	$162,349
Maximum Disposable Income After Income, Property & Sales Taxes	$154,016	$151,728

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

	Texas	Indiana
Income Tax Owed	$41,455	$49,465
After Tax Income	$208,545	$200,535
Income After Income & Property Tax	$204,726	$198,815
Maximum Disposable Income After Income, Property & Sales Taxes	$189,211	$185,809

FAQ

Does Texas or Indiana have lower income taxes?

Texas’s income tax falls into the following range: None

Whereas Indiana’s income tax is the following 3.23%

Does Texas or Indiana have lower property taxes?

Texas has an average property tax rate of 1.25%

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

Does Texas or Indiana have lower sales taxes?

Texas has a state sales tax rate of 6.25% and an average local rate of 1.95% for a combined total rate of 8.20%.

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 Texas or Indiana?

Based on median household income after income, property and sales taxes Texas gives you a maximum amount of disposable income of $56,961

In comparison, Indiana gives you $54,118.

More Comparisons:

Texas vs Missouri
Texas vs Maryland
Texas vs Wisconsin
Texas vs Colorado
Texas 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/