Taxes in Kokomo, Indiana
Complete tax guide for Kokomo, IN. State income tax up to 3.05%, 0.85% property tax, 9.91% sales tax. Calculate your total tax burden.
State Income Tax
3.05%
Indiana
Property Tax
0.85%
Effective rate
Sales Tax
9.91%
Combined rate
Tax Burden
Moderate
Kokomo, IN Tax Overview
Population
58,211
Median Income
$38,000
Cost of Living
80.5 (100 = avg)
State Income Tax
3.05%
Local Income Tax
1.74%
Median Home Price
$115,000
Kokomo Tax Calculator
Pre-filled with Kokomo median: $38,000
Total Tax Burden in Kokomo
$7,249
Take-Home: $30,751 · Effective Rate: 19.08%
Federal Tax
$2,522
6.64% eff.
IN State + Local
$1,820
4.79% eff.
FICA
$2,907
7.65% eff.
Take-Home
$30,751
80.92% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $38,000.00 | $3,166.67 |
| Federal Income Tax | -$2,521.50 | -$210.13 |
| Indiana State Tax | -$1,159.00 | -$96.58 |
| Kokomo Local Tax (1.74%) | -$661.20 | -$55.10 |
| Social Security (6.2%) | -$2,356.00 | -$196.33 |
| Medicare (1.45%) | -$551.00 | -$45.92 |
| Take-Home Pay | $30,751.30 | $2,562.61 |
Property Tax in Kokomo
Median Home
$115,000
Annual Tax
$978
Monthly Tax
$81
Effective Rate
0.85%
Sales Tax in Kokomo
Combined Rate
9.91%
State Portion
~7.4%
Local Portion
~2.5%
The combined sales tax rate in Kokomo is 9.91%, which is above the national average of 7.12%. On a $100 purchase, you would pay $9.91 in sales tax.
Tax Burden Comparison
| Tax Type | Kokomo | Indiana Avg | National Avg |
|---|---|---|---|
| Income Tax | 3.05% + 1.74% | 3.05% | 4.6% |
| Property Tax | 0.85% | ~0.85% | 1.1% |
| Sales Tax | 9.91% | ~9.91% | 7.12% |
| Overall Burden | Moderate | — | Moderate |
Tax Saving Tips for Kokomo 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.
- Kokomo has a local income tax of 1.74%. 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 Kokomo (0.85%) is below the national average of 1.1%. This makes homeownership more affordable here relative to property tax burden.
- The combined sales tax rate of 9.91% is relatively high. Consider making large purchases in lower-tax jurisdictions or online retailers that do not charge local tax rates.
- 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.
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LowCalculate 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 Kokomo, IN?
Kokomo, Indiana has a state income tax rate up to 3.05%, plus a local income tax of 1.74%. The property tax rate is 0.85% and the combined sales tax rate is 9.91%.
How much is property tax in Kokomo?
The effective property tax rate in Kokomo is 0.85%. On the median home price of $115,000, this equals approximately $978 per year or $81 per month. This is below the national average of 1.1%.
What is the sales tax rate in Kokomo?
The combined sales tax rate in Kokomo is 9.91%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Kokomo's tax burden compare to other cities?
Kokomo has a moderate overall tax burden. The effective total tax rate for a median-income household is approximately 25.6%. The combination of 3.05% state income tax, 0.85% property tax, and 9.91% sales tax determines the total burden. Cost of living index is 80.5 (100 = national average).
Are there any local taxes in Kokomo?
Yes. Kokomo imposes a local income tax of 1.74% in addition to the state income tax of 3.05%.