A tax is a charge or levy of money made by a governmental entity (state, local, or federal) against a taxpayer—usually a U.S. citizen or a person living or working in the United States. There are many kinds of taxes, including income tax, capital-gains tax, property tax, franchise tax, gift tax, ad valorem tax, sales tax, use tax, inheritance tax, and estate tax.

In Indiana, as in other states, taxpayers are subject to a variety of taxes imposed by state and local governments, as well as the federal government. Indiana imposes a state income tax on individuals, corporations, and certain other entities. The state's income tax rate is a flat rate, meaning all taxpayers pay the same percentage of their income, regardless of the amount earned. Capital gains are taxed as regular income at the state level. Property taxes are administered at the local level and are based on the assessed value of real and personal property. Indiana does not have an inheritance tax, as it was repealed effective January 1, 2013. However, the state does impose an estate tax, but it is limited and related to federal estate tax collection. Sales tax is also collected on the sale of most goods and some services, while use tax applies to the use, storage, or consumption of goods in Indiana if sales tax has not been paid. Gift tax is not imposed by the state of Indiana but is a consideration at the federal level. Each type of tax has specific regulations, exemptions, and filing requirements, and taxpayers must comply with both state statutes and federal law.