Carmel, IN Taxes (Zionsville, Hamilton: sales, how much, house)

[mnms]

My family is likely moving to Carmel or Zionsville in the next six months and I am trying to get a sense of taxes. I understand that in Carmel, property taxes are approximately 1% of the value of the house and that it could be as high as 2% in Zionsville. I also understand that Indiana has a flat income tax of 3.4%.

What I have not been able to understand is other local taxes. Other than state income tax and property taxes, what taxes (and how much) would I pay at the county or city level.

For example in Carmel:

property taxes: 1% (approximately)
state income tax: 3.4%
city income tax: ??
county income tax: ??
other:??

Thanks,

Mark

[grmasterb]

The county option income tax (COIT) is 1% for Hamilton County, which includes Carmel. Cities and towns in Indiana do not impose an income tax, counties do (with the exception of Lake). Zionsville is in Boone County, and I'm not familiar with their rate, although this information is probably available at the state's Department of Revenue site (www.in.gov/dor)

As for property taxes, the reform passed by the General Assembly capped property taxes on homestead properties at 1% of assessed value, starting next year. This can only be raised via local referendum. For now, I believe you're correct to note that property tax rates in Zionsville are a bit higher. Once the caps are fully in effect, however, taxes could still be higher in Zionsville due to higher assessed values.

Indiana's sales tax rate is 7%. Many counties in the Indy metro area assess an additional percent or two on prepared foods (restaurant tax).

Good luck!