Indiana state income tax — ITIN filer guide

Indiana taxes income at a flat 2.95% (tax year 2026), administered by the Indiana Department of Revenue. This guide covers who must file, how filing with an ITIN works, whether the state EITC applies to you, and when refunds arrive.

FLAT rate: 2.95%

  • State return form: IT-40
  • Deadline (tax year 2026): April 15, 2027
  • Who must file: Must file if gross income exceeds total exemptions claimed ($1,000 per person base; TY2025)
  • State sales tax: 7%
  • Special regime: All 92 Indiana counties levy a local income tax (roughly 0.5%-3%) on top of the state rate, based on county of residence on Jan 1
  • Scheduled change: Rate cut 3.00% -> 2.95% effective Jan 1, 2026; further cut to 2.9% scheduled Jan 1, 2027

Indiana refund timing

  • E-filed returns: Indiana DOR: e-filed returns may take up to 3 weeks to process
  • Paper returns: Indiana DOR: paper-filed returns may take up to 12 weeks
  • Check your Indiana refund status

State tax agency

  • Indiana Department of Revenue — in.gov/dor
  • Phone: 317-232-2240
  • Free filing option: INfreefile (freefile.dor.in.gov) — free federal + state filing through vendor software for lower-AGI taxpayers

Facts verified 2026-06-11 against official state sources (primary source). Figures refresh with every dataset review.

Filing with an ITIN

Your ITIN is fully accepted on the Indiana state return — states accept the IRS-issued taxpayer number, the same one you use federally. The flow is always the same:

  1. Complete your federal return first (Form 1040 + ITIN)
  2. Transfer your federal figures to IT-40
  3. Apply state-specific deductions and credits
  4. E-file — INfreefile (freefile.dor.in.gov) — free federal + state filing through vendor software for lower-AGI taxpayers
  5. Or visit a VITA site for free in-person preparation

Indiana state EITC — do ITIN filers qualify?

The federal EITC requires valid SSNs for you, your spouse, and qualifying children — ITIN filers can never claim it. What varies is the STATE credit:

Indiana Earned Income Credit — 10% of the federal EITC (refundable)

✗ SSN required (not available to ITIN filers)

Indiana DOR: taxpayers 'must have filed for the federal credit' (Schedule IN-EIC); the federal EITC requires valid SSNs, so ITIN-only filers cannot claim it. Indiana is not among the 11 states extending EITC to ITIN filers (NILC/TPC).

See how all 52 jurisdictions compare on the state tax hub and which tax credits ITIN filers can claim.

Last verified: 2026-06-11. Primary source: Indiana Department of Revenue.

General procedural information for educational purposes. Not legal or tax advice. State tax rates change frequently — verify current figures with the state agency before filing. For case-specific guidance, consult a tax professional, enrolled agent, or CPA.