Taxes in Lafayette, Indiana
Complete tax guide for Lafayette, IN. State income tax up to 3.05%, 0.85% property tax, 9.67% sales tax. Calculate your total tax burden.
State Income Tax
3.05%
Indiana
Property Tax
0.85%
Effective rate
Sales Tax
9.67%
Combined rate
Tax Burden
Moderate
Lafayette, IN Tax Overview
Population
70,373
Median Income
$42,000
Cost of Living
84.8 (100 = avg)
State Income Tax
3.05%
Local Income Tax
0.9%
Median Home Price
$175,000
Lafayette Tax Calculator
Pre-filled with Lafayette median: $42,000
Total Tax Burden in Lafayette
$7,874
Take-Home: $34,127 · Effective Rate: 18.75%
Federal Tax
$3,002
7.15% eff.
IN State + Local
$1,659
3.95% eff.
FICA
$3,213
7.65% eff.
Take-Home
$34,127
81.25% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $42,000.00 | $3,500.00 |
| Federal Income Tax | -$3,001.50 | -$250.13 |
| Indiana State Tax | -$1,281.00 | -$106.75 |
| Lafayette Local Tax (0.9%) | -$378.00 | -$31.50 |
| Social Security (6.2%) | -$2,604.00 | -$217.00 |
| Medicare (1.45%) | -$609.00 | -$50.75 |
| Take-Home Pay | $34,126.50 | $2,843.88 |
Property Tax in Lafayette
Median Home
$175,000
Annual Tax
$1,488
Monthly Tax
$124
Effective Rate
0.85%
Sales Tax in Lafayette
Combined Rate
9.67%
State Portion
~7.2%
Local Portion
~2.5%
The combined sales tax rate in Lafayette is 9.67%, which is above the national average of 7.12%. On a $100 purchase, you would pay $9.67 in sales tax.
Tax Burden Comparison
| Tax Type | Lafayette | Indiana Avg | National Avg |
|---|---|---|---|
| Income Tax | 3.05% + 0.9% | 3.05% | 4.6% |
| Property Tax | 0.85% | ~0.85% | 1.1% |
| Sales Tax | 9.67% | ~9.67% | 7.12% |
| Overall Burden | Moderate | — | Moderate |
Tax Saving Tips for Lafayette 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.
- Lafayette has a local income tax of 0.9%. 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 Lafayette (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 9.67% 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.
Other Cities in Indiana
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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 Lafayette, IN?
Lafayette, Indiana has a state income tax rate up to 3.05%, plus a local income tax of 0.9%. The property tax rate is 0.85% and the combined sales tax rate is 9.67%.
How much is property tax in Lafayette?
The effective property tax rate in Lafayette is 0.85%. On the median home price of $175,000, this equals approximately $1,488 per year or $124 per month. This is below the national average of 1.1%.
What is the sales tax rate in Lafayette?
The combined sales tax rate in Lafayette is 9.67%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Lafayette's tax burden compare to other cities?
Lafayette has a moderate overall tax burden. The effective total tax rate for a median-income household is approximately 25.7%. The combination of 3.05% state income tax, 0.85% property tax, and 9.67% sales tax determines the total burden. Cost of living index is 84.8 (100 = national average).
Are there any local taxes in Lafayette?
Yes. Lafayette imposes a local income tax of 0.9% in addition to the state income tax of 3.05%.