By Olivia Smith
We’re used to paying sales tax at the store, seeing gas tax at the pump, and filing our income taxes each April, but do you know how much Indiana collects in state taxes?
Let’s begin with a couple definitions, and then dig into the numbers!
Indiana’s budget process and revenue collections don’t align with our standard calendar year, but instead are reported on a fiscal year basis. Indiana’s fiscal year (FY) runs from July 1st through June 30th of the following year, and the fiscal year is identified by the calendar year in which it ends.
- For example, the fiscal year beginning on July 1, 2024 and ending June 30th, 2025 would be referenced as FY 2025.
Indiana tax revenue is the money collected by the state through levying taxes on individuals, companies, and property, among others. Indiana’s state and local government use tax revenue to fund essential government services in areas such as public health, public education, and public safety.
The Indiana Department of Revenue supports the state in the administration of over 60 tax types, and according to its most recent annual report, the agency collected over $29.9 billion in tax revenue in FY 2024. This pie chart from the Department’s report shows their breakdown of those collections by tax type.
The Indiana State Budget Agency facilitates the processes of revenue forecasting, budget development, and budget implementation. They also publish monthly revenue reports available to the public, which show detailed breakdowns of actual revenue collections versus forecasted revenue. These reports help the governor, legislators, and the public understand Indiana’s revenue collections, and as we approach a new legislative session, these revenue reports become critical to developing the state’s budget.
So now that we have an idea of how much Indiana is collecting in taxes, and how to find that information, next time we’ll dive into how Indiana uses this information to make its budget!
TL;DR: Indiana’s fiscal year (FY) runs from July 1st through June 30th of the following year, and the fiscal year is identified by the calendar year in which it ends. Indiana tax revenue is the money collected by the state through levying taxes. The Indiana Department of Revenue is our state’s tax administrator, and the agency collected over $29.9 billion in tax revenue in FY 2024. The Indiana State Budget Agency also publishes monthly revenue reports that compare forecasted revenue collections with actual revenue collections, which informs the state’s budgeting process.