Businesses Choose Steuben County for a Friendly Tax Environment
According to the Tax Foundation’s 2023 State Business Tax Climate Index, Indiana ranks 1st in the Midwest and 9th nationally as a state with a business-friendly tax environment. Compared to surrounding states, Indiana boasts a total tax burden lower than Ohio, Illinois, Wisconsin, and Michigan.
Property taxes in Steuben County vary by township and range. Under state law, property taxes are capped at one percent of assessed value for homesteads, two percent for other residential and agricultural properties, and three percent for business property.
Due to legislation in 2011, Indiana’s corporate income tax rate fell by 2 percent. After the continuation of a scheduled multi-year reduction, the current corporate income tax rate is 4.9 percent. Indiana’s corporate income tax rate is the second-lowest rate of any state levying the tax.
A breakdown of other statewide taxes includes the following:
- Sales and Use Tax – 7%
- Individual Income Tax – 3.23%
- Gross Receipts and Inventory Tax – 0%
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.