Taxes in Lawrence, Indiana
Complete tax guide for Lawrence, IN. State income tax up to 3.05%, 0.89% property tax, 8.79% sales tax. Calculate your total tax burden.
State Income Tax
3.05%
Indiana
Property Tax
0.89%
Effective rate
Sales Tax
8.79%
Combined rate
Tax Burden
Low
Lawrence, IN Tax Overview
Population
49,156
Median Income
$54,800
Cost of Living
79.9 (100 = avg)
State Income Tax
3.05%
Local Income Tax
0.71%
Median Home Price
$201,000
Lawrence Tax Calculator
Pre-filled with Lawrence median: $54,800
Total Tax Burden in Lawrence
$10,790
Take-Home: $44,010 · Effective Rate: 19.69%
Federal Tax
$4,538
8.28% eff.
IN State + Local
$2,060
3.76% eff.
FICA
$4,192
7.65% eff.
Take-Home
$44,010
80.31% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $54,800.00 | $4,566.67 |
| Federal Income Tax | -$4,537.50 | -$378.13 |
| Indiana State Tax | -$1,671.40 | -$139.28 |
| Lawrence Local Tax (0.71%) | -$389.08 | -$32.42 |
| Social Security (6.2%) | -$3,397.60 | -$283.13 |
| Medicare (1.45%) | -$794.60 | -$66.22 |
| Take-Home Pay | $44,009.82 | $3,667.49 |
Property Tax in Lawrence
Median Home
$201,000
Annual Tax
$1,789
Monthly Tax
$149
Effective Rate
0.89%
Sales Tax in Lawrence
Combined Rate
8.79%
State Portion
~6.3%
Local Portion
~2.5%
The combined sales tax rate in Lawrence is 8.79%, which is above the national average of 7.12%. On a $100 purchase, you would pay $8.79 in sales tax.
Tax Burden Comparison
| Tax Type | Lawrence | Indiana Avg | National Avg |
|---|---|---|---|
| Income Tax | 3.05% + 0.71% | 3.05% | 4.6% |
| Property Tax | 0.89% | ~0.89% | 1.1% |
| Sales Tax | 8.79% | ~8.79% | 7.12% |
| Overall Burden | Low | — | Moderate |
Tax Saving Tips for Lawrence 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.
- Lawrence has a local income tax of 0.71%. 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 Lawrence (0.89%) 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 8.79% 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
Indianapolis
LowFort Wayne
LowEvansville
Very LowSouth Bend
Very LowCarmel
HighBloomington
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 Lawrence, IN?
Lawrence, Indiana has a state income tax rate up to 3.05%, plus a local income tax of 0.71%. The property tax rate is 0.89% and the combined sales tax rate is 8.79%.
How much is property tax in Lawrence?
The effective property tax rate in Lawrence is 0.89%. On the median home price of $201,000, this equals approximately $1,789 per year or $149 per month. This is below the national average of 1.1%.
What is the sales tax rate in Lawrence?
The combined sales tax rate in Lawrence is 8.79%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Lawrence's tax burden compare to other cities?
Lawrence has a low overall tax burden. The effective total tax rate for a median-income household is approximately 24.9%. The combination of 3.05% state income tax, 0.89% property tax, and 8.79% sales tax determines the total burden. Cost of living index is 79.9 (100 = national average).
Are there any local taxes in Lawrence?
Yes. Lawrence imposes a local income tax of 0.71% in addition to the state income tax of 3.05%.