All corporations operating in Indiana must pay corporate income taxes. Pass-through organizations—including sole proprietors, general partnerships, limited partnerships, limited liability partnerships, S-corporations, and LLCs—are typically exempt from the corporate tax and instead pass income through to their owners' individual tax returns. Indiana's corporate income tax rate is a flat 4.9%. This rate was achieved following a multiyear reduction schedule that lowered the tax from 6.5% down to its current flat rate.
Indiana offers a competitive suite of business incentive programs, actively deploying venture capital through state-supported entities like Elevate Ventures, which manages capital injections via the Indiana Angel Network Fund to back early-stage startups. Throughout the state, there are five primary foreign-trade zone regional systems providing custom duty relief, anchored around major ports, airports, and hubs including Indianapolis, South Bend, Burns Harbor, Louisville, and Fort Wayne.
