Indiana Capital Gains Tax Calculator
Indiana taxes capital gains as ordinary income at the state level, which means a gain on selling shares, property or other investments is added to your other income and taxed using the Indiana income tax brackets, with no separate preferential long-term rate like the federal system provides. This calculator estimates the Indiana state tax on a capital gain by stacking the gain on top of your other taxable income and applying the sourced Indiana Department of Revenue brackets for tax year 2025, then taking the difference. Enter your gain, your other annual taxable income and your filing status to see the state tax attributable to the gain and the effective rate on it. The result is the Indiana state portion only; federal capital gains tax, which has separate short-term and long-term rates set by the IRS, is calculated separately. Because the gain stacks on your other income, the same gain is taxed at a higher rate the more you already earn. Some states provide specific exclusions or preferential treatment for certain gains; this tool uses the standard ordinary-income method and links the Indiana Department of Revenue so you can confirm any special rule that applies to you.
Indiana taxes capital gains as ordinary income. A $20,000.00 gain on top of $60,000.00 of other income (single) adds about $610.00 in Indiana state tax, an effective rate on the gain of 3.05%.
How Indiana taxes capital gains
Indiana taxes capital gains as ordinary income, so the gain is added to your other income and taxed at the Indiana bracket rates.
state tax on gain = state income tax on (other income + gain) - state income tax on (other income)
effective rate on gain = state tax on gain / gain x 100
Indiana capital gains tax: frequently asked questions
How are capital gains taxed in Indiana?
Indiana taxes capital gains as ordinary income at the state level: the gain is added to your other taxable income and taxed using the Indiana income tax brackets published by the Indiana Department of Revenue. This calculator applies those brackets to your gain. Some states provide specific exclusions or rates for particular gains; confirm your situation with the Indiana Department of Revenue.
How much state tax will I pay on a $20,000.00 capital gain in Indiana?
Stacked on $60,000.00 of other income, a $20,000.00 gain adds about $610.00 of Indiana state income tax for a single filer, an effective rate on the gain of 3.05%. Your figure depends on your total income and filing status; enter them above.
Does Indiana have a separate long-term capital gains rate?
Most states, including the default treatment here, tax long-term and short-term capital gains at the same ordinary income rates, unlike the federal system which has preferential long-term rates. Any state-specific exclusion or preferential rate is set by the Indiana Department of Revenue; this calculator uses the ordinary income method and links the source.
What is Indiana's state income tax rate for 2025?
Indiana's flat state income tax rate is 3.05% for tax year 2025. This rate applies to all adjusted gross income regardless of filing status. The rate was reduced from 3.15% as of January 1, 2025 under Indiana HEA 1001 (2023), per Indiana Code §6-3-2-1.
Does Indiana have a standard deduction?
Indiana does not have a standard deduction. Instead, Indiana allows a personal exemption of $1,000 per taxpayer. A dependent exemption of $1,500 applies for each dependent who is under age 18 or has a qualifying disability; a $500 exemption applies for other qualifying dependents. See Indiana Code §6-3-1-3.5.
Does Indiana have county income taxes?
Yes. In addition to the 3.05% state rate, each Indiana county may impose its own county income tax. County rates vary and are collected by the Indiana Department of Revenue through the same state return. Rates range roughly from 0.5% to over 3% depending on the county. You must use the county rate for the county where you lived on January 1 of the tax year.
Will Indiana's income tax rate continue to fall?
Indiana's HEA 1001 (2023) includes a schedule of further reductions subject to revenue conditions. Future planned rates are 3.0% for 2026, 2.9% for 2027, 2.8% for 2028, and so on toward a long-run target. Reductions are contingent on Indiana meeting its revenue reserve requirements each year.
Official sources
- Indiana income tax rates applied to capital gains (tax year 2025): Indiana Department of Revenue, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. General information, not financial or tax advice. State-specific exclusions, if any, are set by the Indiana Department of Revenue.