Startup Costs in Indiana

Data current as of May 2026

Indiana offers some of the lowest operating costs in the Midwest, with affordable commercial space and a flat income tax of 3.05% that is among the lowest state income taxes in the country. Indianapolis anchors the economy as a logistics and healthcare hub. The state's central location and interstate highway access make it ideal for businesses that serve regional markets.

Indiana (IN) by the Numbers

LLC Filing Fee
$100
Annual Report
$32
State Income Tax
3.00%
Sales Tax
7.00%
Min Wage
$7.25/hr
Cost of Living
0.90x
Labor Cost
0.90x
Rent Index
0.75x

What Indiana's Numbers Mean for Founders

  • State income tax caps at 3.00%.
  • Labor costs are 10% below the national average, a margin advantage for service and retail operations.
  • Commercial rent is 25% below the national average, which gives you more square footage for your budget.
  • Minimum wage is the federal floor of $7.25/hour, keeping entry-level payroll low.
Capital: Indianapolis
Major metros: Indianapolis, Fort Wayne, Evansville, South Bend
Top industries: Manufacturing, Logistics, Healthcare, Agriculture

Indiana Cost Guides (10)