State tax debt in Indiana is collected by Indiana Department of Revenue, not the IRS.
Key facts for Indiana
- State income tax
- 2.95% for 2026, plus county income tax. Source
- Offer program
- Yes, through the Taxpayer Advocate Office. The offer must be more than $0. You must stay current for five years after. Source
- Liens
- Tax warrants are filed with county clerks. Source
- Taxpayer advocate
- Indiana has a Taxpayer Advocate Office. Source
Two debts, two sets of rules
- The IRS collects federal taxes, with its own letters and plans.
- Indiana Department of Revenue collects Indiana taxes, with its own rules.
- A plan with the IRS does not stop the state from collecting, and the other way around.
Common questions in Indiana
Who collects state taxes in Indiana?
The Indiana Department of Revenue. It is separate from the IRS. A plan with one does not stop the other from collecting.
Does Indiana take offers in compromise?
Yes, through the Taxpayer Advocate Office. The offer must be more than $0. You must stay current for five years after.
Can TaxTruce help with Indiana tax debt?
Yes. TaxTruce is a free service that connects you with tax resolution firms that work in Indiana. Answer a few questions, confirm your phone with a text code, and a firm reviews your situation and calls you back. We are not the IRS or a state agency.
Results depend on your situation. Not every case qualifies.
Sources
- Indiana Department of Revenue
- Indiana Department of Revenue: income tax rates
- Indiana Department of Revenue: offers and settlements
- Indiana Department of Revenue: liens and warrants
- Census QuickFacts Indiana (ACS 2020-2024)
- Census Reporter: Indiana profile (ACS 2024 1 year)
- Census population estimates, July 1, 2024 (share 65 and over)
Facts on this page come from Indiana Department of Revenue and are linked. Rules change. Check with Indiana Department of Revenue or a licensed tax pro before you act. We are not affiliated with Indiana Department of Revenue.