Indiana

Indiana inheritance tax repealed in 2013; applied only to deaths on or before Dec 31 2012

“The legislature repealed the Indiana Inheritance tax in 2013. Inheritance tax previously had to be paid for individuals who passed away on or before Dec. 31, 2012.”

Note: Two verbatim sentences from the fetched page; may not be adjacent in the page layout. Departmental Notice 44 also at in.gov/dor/files/dn44.pdf.

Indiana adjusted gross income tax rate is 3.0% for TY2025

“Each taxable year, a tax at the rate of 3.0% is imposed on the adjusted gross income of every resident individual, and on that part of the adjusted gross income derived from sources within Indiana of every nonresident individual.”

Note: Rate falls to 2.95% (TY2026) and 2.90% (TY2027) under enacted legislation. Indiana also imposes a mandatory county LIT (Local Income Tax) of 0.5% to 3.0% on the same adjusted gross income base, reaching capital gains. Marion County (Indianapolis) rate is 2.02%; statewide representative rate ~1.5% to 2.5%.

Indiana mandatory county LIT of 0.5% to 3.0% applies to the same AGI base as the state tax

“A county income tax is imposed on the adjusted gross income of each county taxpayer who resides in the county on the date specified under IC 6-3.6-2-2.”

Note: County rates vary from 0.5% to 3.0%. Marion County (Indianapolis) is 2.02% (2025).

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

IN exempts IN-issued bonds; out-of-state muni bonds acquired after Dec. 31, 2011 are taxable

“Interest earned from a direct obligation of a state or political subdivision other than Indiana is taxable by Indiana if the obligation is acquired after Dec. 31, 2011. If you had interest from a bond issued by or in the name of certain Indiana government subdivisions or entities, deduct any interest or other income included in federal gross income.”

Note: Indiana IT-40 Schedule 1 Line 3 adds back out-of-state muni interest for bonds acquired after Dec. 31, 2011. Pre-2012 acquisitions are grandfathered as exempt. Indiana bonds are exempt via Schedule 2 Code 636 deduction. IC 6-8-5-1 is the primary statutory authority. URL points to the Indiana DOR individual forms page; the specific IT-40 booklet instructions were the intended source. Confidence medium pending section-specific URL.

IN exempts IN-issued bonds; out-of-state muni bonds acquired after Dec. 31, 2011 are taxable

“Interest earned from a direct obligation of a state or political subdivision other than Indiana is taxable by Indiana if the obligation is acquired after Dec. 31, 2011. If you had interest from a bond issued by or in the name of certain Indiana government subdivisions or entities, deduct any interest or other income included in federal gross income.”

Note: Indiana IT-40 Schedule 1 Line 3 adds back out-of-state muni interest for bonds acquired after Dec. 31, 2011. Pre-2012 acquisitions are grandfathered as exempt. Indiana bonds are exempt via Schedule 2 Code 636 deduction. IC 6-8-5-1 is the primary statutory authority. URL points to the Indiana DOR individual forms page; the specific IT-40 booklet instructions were the intended source. Confidence medium pending section-specific URL.

Indiana conforms to IRC §1400Z-2 QOZ gain deferral and exclusion

“'Internal Revenue Code' means the Internal Revenue Code of 1986 of the United States, as amended and in effect on January 1, 2026.”

Note: Indiana IRC conformity date updated to January 1, 2026 (2026 S.B. 243); §1400Z-2 incorporated.

Indiana conforms to IRC §1202 QSBS gain exclusion

“'Internal Revenue Code' means the Internal Revenue Code of 1986 of the United States, as amended and in effect on January 1, 2026.”

Note: Indiana IRC conformity incorporates §1202; no addback.

Indiana deduction for U.S. obligation interest requires exemption from state income taxation under federal law; FNMA and FHLMC have no such federal bondholder exemption

“If any item of income is excluded from gross income for federal income tax purposes but is required to be added under IC 6-3-1-3.5, there shall be allowed as a deduction from adjusted gross income... interest income received from United States obligations if and to the extent that the obligations are exempt from state income taxation.”

Note: IC 6-3-2-4(b)(1) deduction applies only to interest on US obligations exempt from state taxation. FNMA and FHLMC have no bondholder exemption statute. No Indiana DOR named-entity publication found; confidence: medium based on structural statutory analysis.

Indiana adjusted gross income tax rate is 3.0% for TY2025

“Each taxable year, a tax at the rate of 3.0% is imposed on the adjusted gross income of every resident individual, and on that part of the adjusted gross income derived from sources within Indiana of every nonresident individual.”

Note: Rate falls to 2.95% (TY2026) and 2.90% (TY2027) under enacted legislation. Indiana also imposes a mandatory county LIT (Local Income Tax) of 0.5% to 3.0% on the same adjusted gross income base, reaching capital gains. Marion County (Indianapolis) rate is 2.02%; statewide representative rate ~1.5% to 2.5%.

U.S. Treasury interest exempt from Indiana income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations

“Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.”

Note: 31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.

FHLB and FFCB bond interest exempt from Indiana income tax: federal enabling statutes mandate state tax exemption

“Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.”

Note: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.

Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation

“The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).”

Note: 12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

Indiana adjusted gross income tax rate is 3.0% for TY2025

“Each taxable year, a tax at the rate of 3.0% is imposed on the adjusted gross income of every resident individual, and on that part of the adjusted gross income derived from sources within Indiana of every nonresident individual.”

Note: Rate falls to 2.95% (TY2026) and 2.90% (TY2027) under enacted legislation. Indiana also imposes a mandatory county LIT (Local Income Tax) of 0.5% to 3.0% on the same adjusted gross income base, reaching capital gains. Marion County (Indianapolis) rate is 2.02%; statewide representative rate ~1.5% to 2.5%.

Indiana adjusted gross income tax rate is 3.0% for TY2025

“Each taxable year, a tax at the rate of 3.0% is imposed on the adjusted gross income of every resident individual, and on that part of the adjusted gross income derived from sources within Indiana of every nonresident individual.”

Note: Rate falls to 2.95% (TY2026) and 2.90% (TY2027) under enacted legislation. Indiana also imposes a mandatory county LIT (Local Income Tax) of 0.5% to 3.0% on the same adjusted gross income base, reaching capital gains. Marion County (Indianapolis) rate is 2.02%; statewide representative rate ~1.5% to 2.5%.

Indiana recomputes a migrating resident's capital-loss carryforward on an in-state basis (structural inference)

“Verbatim text not yet extracted; see note.”

Note: Structural inference: IC 6-3-2-1(a) imposes the tax on the adjusted gross income of every resident and on that part of the adjusted gross income derived from sources within Indiana of every nonresident, so nonresident/part-year income is recomputed on an in-state-source basis and an imported pre-residency federal section 1212 carryforward is recalculated rather than imported in full. Verbatim statutory text could not be extracted on 2026-07-03: iga.in.gov is a JavaScript single-page app that renders no statute text to curl/WebFetch, and its api.iga.in.gov backend is gated behind an x-api-key (HTTP 403). Indiana DOR bulletin ib28.pdf does not verbatim-quote the section. No accessible primary .gov source; left pending.