Indiana's corporate income tax rate fell by 0.25 percent to 6.25 percent on July 1st, in a move state legislators and the governor hope will make Indiana more attractive to businesses.
Indiana is now tied with Missouri for the 19th lowest corporate income tax rate in the country, according to the Tax Foundation.
Currently, Indiana's corporate income taxes are higher than Michigan and Kentucky, which both have marginal corporate income tax rates of 6 percent, and Ohio, which does not impose corporate income taxes. Illinois currently has a state corporate income tax rate of 7.75 percent.
State corporate income taxes in Indiana already had dropped by 8.5 percent to 6.5 percent over the last four years. In 2014, state lawmakers in Indianapolis passed a bill that will continue to gradually reduce the state's corporate tax rate until it is just 4.9 percent in 2022.
Indiana had the only corporate income tax change in the country in July, since most state's tax changes occur in January, according to the nonpartisan Tax Foundation. The Hoosier state is different because corporate taxes are imposed based on the fiscal year instead of the calendar year.