Taxes in Bloomington

Bloomington's tax picture runs genuinely favorable: a low effective property tax rate and a disclosed combined income tax rate that includes Monroe County's real local layer.

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A genuinely low effective property tax rate

Bloomington's median effective property tax rate ran 0.99%, with a real, disclosed spread by ZIP code (1.09% in 47401 versus 0.79% in 47403).

Indiana's flat state tax plus Monroe County's local layer

Indiana's real, flat 2.95% state income tax applies statewide, but Monroe County separately layers a real 1.05% local income tax on top -- a combined 4.00% rate on most earned income for Bloomington residents.

A simple, uniform sales tax

Indiana's flat 7% statewide sales tax applies in Bloomington with no additional local-option county layer.

Key takeaways

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Last reviewed: 2026-08-27. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.