Indiana’s budget increased cumulatively more than the maximum rate of population growth plus inflation in state funds and all funds from 2016-25, meaning taxes are higher than the average taxpayer can afford.
- The 2025 state funds budget is $462 million higher than it would have had spending grown at the rate of population growth plus inflation over the past decade.
- Because the state funds budget grew faster than population growth plus inflation for the last ten years, the state spent $28.6 billion too much.
- The 2025 all funds budget is $6.2 billion higher than it would have been had spending grown at the rate of population growth plus inflation over the past decade.
- Because the all funds budget grew faster than population growth plus inflation over the past decade, the state spent $67.1 billion too much.



State Funds Budget Data
- Estimated FY 2026 Only State Funds Budget ($ Billions): $ 26.11
- FY 2027 Only State Funds Budget Limit ($ Billions): $ 27.05
- FY 2027 Only State Funds Budget Limit Growth (%): 3.62%
- Cost per person of only state funds budgeting more than pop+inf over the last decade in 2025 budget: $ 5,882
- Cost per family of 4 of only state funds budgeting more than pop+inf over the last decade in 2025 budget: $ 66
- Cumulative cost per person of only state funds budgeting more than pop+inf over the last decade from 2016-25: $ 4,097
- Cumulative cost per family of 4 of only state funds budgeting more than pop+inf over the last decade from 2016-25: $ 16,388
All Funds Budget Data
- Estimated FY 2026 All Funds Budget ($ Billions): $ 48.69
- FY 2027 All Funds Budget Limit ($ Billions): $ 50.45
- FY 2027 All Funds Budget Limit Growth (%): 3.6%
- Cost per person of all funds budgeting more than pop+inf over the last decade in 2025 budget: $ 9,702
- Cost per family of 4 of all funds budgeting more than pop+inf over the last decade in 2025 budget: $ 890
- Cumulative cost per person of all funds budgeting more than pop+inf over the last decade from 2016-25: $ 9,617
- Cumulative cost per family of 4 of all funds budgeting more than pop+inf over the last decade from 2016-25: $ 38,466
Other Economic and Fiscal Considerations
- Economic Freedom of North America (2023) (Rank): 10 [Fraser Institute]
- Economic Freedom (2022) (Rank): 13 [Cato Institute]
- Fiscal Policy (2022) (Rank): 21 [Cato Institute]
- Regulatory Policy (2022) (Rank): 8 [Cato Institute]
- State Tax Collections Per Capita (FY2021) ($): $3,915 [Tax Foundation]
- State Tax Collections Per Capita (FY2021) (Rank): 18 [Tax Foundation]
- State-Local Total Tax Burden per Capita (2022) ($): $5,030 [Tax Foundation]
- State-Local Tax Burden per Capita (2022) (%): 9.3% [Tax Foundation]
- State-Local Tax Burden per Capita (2022) (Rank): 14 [Tax Foundation]
- Top Income Tax Rate (2026) (%): 3.0% [Tax Foundation]
- Top Income Tax Rate (2026) (Rank): 13 [Tax Foundation]
- Flat/Progressive/Zero Income Tax (2026): F [Tax Foundation]
- Overall State Tax Competitiveness Index (2026) (Rank): 10 [Tax Foundation]
- Top Corporate Income Tax Rate (2026) (%): 4.9% [Tax Foundation]
- State-Local Sales Tax Rate (2026) (%): 7.0% [Tax Foundation]
- State-Local Sales Tax Rate (2026) (Rank): 14 [Tax Foundation]
- Property Taxes Paid as a Percentage of Owner-Occupied Housing Value (2023) (%): 0.7% [Tax Foundation]
- Property Taxes Paid as a Percentage of Owner-Occupied Housing Value (2026) (Rank): 4 [Tax Foundation]
- Economic Outlook (2025) (Rank): 3 [American Legislative Exchange Council]
- Economic Performance Rankings, 2013-2023 (2025) (Rank): 21 [American Legislative Exchange Council]
- Value for Tax and Expenditure Limits (0-3): 1 [American Legislative Exchange Council]
- Tax and Expenditure Limit (Rank): 15 [American Legislative Exchange Council]
- Right-to-Work Law (2025) (Y/N): Y [American Legislative Exchange Council]
- State Spending per Capita (2022) ($): $ 5,776 [US Government Spending]
- State Spending per Capita (2022) (Rank): 9 [US Government Spending]
- Local Spending per Capita (2022) ($): $ 5,212 [US Government Spending]
- Local Spending per Capita (2022) (Rank): 15 [US Government Spending]
- Official Poverty Rate (2022-24) (%): 9.1 [Census Bureau]
- Official Poverty Rate (2022-24) (Rank): 19 [Census Bureau]
- Supplemental Poverty Rate (2022-24) (%): 6.7 [Census Bureau]
- Supplemental Poverty Rate (2022-24) (Rank): 1 [Census Bureau]
- Labor Force Participation Rate (Dec 2025) (%): 63.6% [Bureau of Labor Statistics]
- Labor Force Participation Rate (Dec 2025) (Rank): 22 [Bureau of Labor Statistics]
- Real Private Gross Domestic Product (2024) (Millions of $): $ 377,310 [Bureau of Economic Analysis]
- Real Private GDP (2024) (Rank): 18 [Bureau of Economic Analysis]
- Real Private GDP per Capita (2024): $ 54,408 [Bureau of Economic Analysis]
- Real Private GDP per Capita (2024) (Rank): 27 [Bureau of Economic Analysis]
- Real Private GDP Growth (2015-24) (%): 22.1% [US Bureau of Economic Analysis]
- Real Private GDP Growth (2015-24) (Rank): 23 [US Bureau of Economic Analysis]