Taxes in Bloomington, Indiana
Complete tax guide for Bloomington, IN. State income tax up to 3.05%, 0.83% property tax, 7% sales tax. Calculate your total tax burden.
State Income Tax
3.05%
Indiana
Property Tax
0.83%
Effective rate
Sales Tax
7%
Combined rate
Tax Burden
Low
Bloomington, IN Tax Overview
Indiana University; Monroe County local income tax of 1.34%
Population
79,168
Median Income
$40,118
Cost of Living
89.3 (100 = avg)
State Income Tax
3.05%
Local Income Tax
1.34%
Median Home Price
$225,000
Bloomington Tax Calculator
Pre-filled with Bloomington median: $40,118
Total Tax Burden in Bloomington
$7,606
Take-Home: $32,512 · Effective Rate: 18.96%
Federal Tax
$2,776
6.92% eff.
IN State + Local
$1,761
4.39% eff.
FICA
$3,069
7.65% eff.
Take-Home
$32,512
81.04% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $40,118.00 | $3,343.17 |
| Federal Income Tax | -$2,775.66 | -$231.30 |
| Indiana State Tax | -$1,223.60 | -$101.97 |
| Bloomington Local Tax (1.34%) | -$537.58 | -$44.80 |
| Social Security (6.2%) | -$2,487.32 | -$207.28 |
| Medicare (1.45%) | -$581.71 | -$48.48 |
| Take-Home Pay | $32,512.13 | $2,709.34 |
Property Tax in Bloomington
Median Home
$225,000
Annual Tax
$1,868
Monthly Tax
$156
Effective Rate
0.83%
Sales Tax in Bloomington
Combined Rate
7%
State Portion
~4.5%
Local Portion
~2.5%
The combined sales tax rate in Bloomington is 7%, which is below the national average of 7.12%. On a $100 purchase, you would pay $7.00 in sales tax.
Tax Burden Comparison
| Tax Type | Bloomington | Indiana Avg | National Avg |
|---|---|---|---|
| Income Tax | 3.05% + 1.34% | 3.05% | 4.6% |
| Property Tax | 0.83% | ~0.83% | 1.1% |
| Sales Tax | 7% | ~7% | 7.12% |
| Overall Burden | Low | — | Moderate |
Tax Saving Tips for Bloomington Residents
- Indiana's income tax rate of 3.05% is competitive. You may still benefit from maximizing 401(k) contributions ($23,500 limit) to reduce your taxable income at both state and federal levels.
- Bloomington has a local income tax of 1.34%. If you work remotely, verify whether you owe city tax based on where you work or where you live. Some cities only tax people who work within city limits.
- Property tax in Bloomington (0.83%) is below the national average of 1.1%. This makes homeownership more affordable here relative to property tax burden.
- Use a Health Savings Account (HSA) if eligible. Contributions are tax-deductible ($4,300 individual, $8,550 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
Other Cities in Indiana
Calculate Your Full Indiana Tax Burden
See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Bloomington, IN?
Bloomington, Indiana has a state income tax rate up to 3.05%, plus a local income tax of 1.34%. The property tax rate is 0.83% and the combined sales tax rate is 7%. Indiana University; Monroe County local income tax of 1.34%
How much is property tax in Bloomington?
The effective property tax rate in Bloomington is 0.83%. On the median home price of $225,000, this equals approximately $1,868 per year or $156 per month. This is below the national average of 1.1%.
What is the sales tax rate in Bloomington?
The combined sales tax rate in Bloomington is 7%, which includes both state and local components. This is below the national average combined rate of approximately 7.12%.
How does Bloomington's tax burden compare to other cities?
Bloomington has a low overall tax burden. The effective total tax rate for a median-income household is approximately 25.1%. The combination of 3.05% state income tax, 0.83% property tax, and 7% sales tax determines the total burden. Cost of living index is 89.3 (100 = national average).
Are there any local taxes in Bloomington?
Yes. Bloomington imposes a local income tax of 1.34% in addition to the state income tax of 3.05%. Indiana University; Monroe County local income tax of 1.34%