Taxes in Anderson
Anderson's tax picture pairs Indiana's genuinely low, simple flat state income tax with a real, meaningful Madison County local income tax layer and an effective property tax rate close enough to the statutory Circuit Breaker cap to matter.
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Learn moreAn effective rate near the Circuit Breaker cap
Anderson's median effective property tax rate ran 1.09% per Ownwell -- above both the Indiana statewide median (1.01%) and Madison County's own median (1.07%), and close enough to Indiana's 1% homestead Circuit Breaker cap that the cap provides real, active protection for many Anderson homeowners.
Indiana's flat state income tax, plus a real county layer
Indiana's 2.95% flat state income tax applies statewide, and Madison County adds a real, additional 2.25% local income tax (combined approximately 5.20%), with 0.5 points earmarked for property tax relief.
A simple statewide sales tax
Indiana's uniform 7% sales tax applies in Anderson with no local add-on anywhere in the state.
Key takeaways
- Anderson's effective property tax rate (1.09%) runs above the Madison County and Indiana statewide medians.
- Madison County's 2.25% local income tax layers onto Indiana's 2.95% flat state rate.
- Indiana's 7% statewide sales tax carries no local add-on.
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