Is moving from California to Indianapolis a good idea for me? (Hamilton: real estate, hotel)

[sheerbliss]

I made a mistake in my post above--the figures didn't include Indiana county taxes.

$19,000 in Marion County, IN, single: $872
$58,000 in Marion County, IN, married: $2,708
$180,000 in Hamilton County, IN, Married: $7528
$250,000 in Hamilton County, IN, married: $10,489

Apologies.

[49erfan916]

and property taxes makes a huge difference. That inself, makes the city tax of 1 percent a bargain compared to what's in california. However, I will check out the are come June or July.

[ndindy]

Originally Posted by ImmerLernen

All of you who have brought actual data and sources: Thank you! These are great for doing "what-if" calculations.

One question, though...ndindy has mentioned "localities" with regard to income taxes over and above the state and county ones, but no one else has (or I missed it). What localities do you mean, and where can I find a good source?

Localities are taxes in addition to the state of Indiana. Depending on where you live, you will pay a county tax and possibly a city or township tax. The county taxes are an additional percentage on top of the state tax of 3.23%. Most counties are between 1-2% of your total income. This is notable because Indiana is one of a handful, (I believe 7 states), that levy locality taxes. That's why I said lower income earners would pay less payroll state taxes in California.

The last year we lived in Indiana and filed taxes, we grossed $181k in wages and paid $9414 in state and local taxes. This puts us at just over 5% in Indiana related taxes. Yes, that same income in California would pay more taxes, though it would go all to the state.

I don't have a paycheck with deductions from when either of us worked in Indiana, but someone on here who works in Indy can probably give an idea of how much they pay to state and local taxes.

I had no idea until we moved to California that most states didn't have city/county/township taxes. It has been a pleasant surprise that our costs have not gone up in most areas. Everyone's situation is different, so it's not a bad idea talk with unbaised people to get a handle on how your expenses may change.

[ImmerLernen]

Originally Posted by ndindy

Localities are taxes in addition to the state of Indiana. Depending on where you live, you will pay a county tax and possibly a city or township tax. The county taxes are an additional percentage on top of the state tax of 3.23%. Most counties are between 1-2% of your total income. This is notable because Indiana is one of a handful, (I believe 7 states), that levy locality taxes. That's why I said lower income earners would pay less payroll state taxes in California.

Agreed, and here's a link to a list income tax rates by Indiana county:

https://www.payroll-taxes.com/state-...diana-counties

However, I still have not found any info as to an additional "city or township" income tax. If any of you local wage earners care to look at your paycheck stubs to confirm/refute that notion, that'd be great.

[sheerbliss]

I have five (yes, five) W-2s from 2016. They all have local income tax withheld, in all cases slightly over half the state income tax withheld. Locality name is C-49, or IN-49 Marion, or just 49, even though one of the jobs was in Hamilton County. Apparently, the tax is applied based on where you live.

The only taxes or fees I know of here are state income taxes, state sales tax, county income tax, property tax, and (in some areas) HOA fees. Aside from the county code (49), I don't see anything on my H&R Block website prepared income tax return about a township or other local tax.

[49erfan916]

Originally Posted by sheerbliss

I have five (yes, five) W-2s from 2016. They all have local income tax withheld, in all cases slightly over half the state income tax withheld. Locality name is C-49, or IN-49 Marion, or just 49, even though one of the jobs was in Hamilton County. Apparently, the tax is applied based on where you live.

The only taxes or fees I know of here are state income taxes, state sales tax, county income tax, property tax, and (in some areas) HOA fees. Aside from the county code (49), I don't see anything on my H&R Block website prepared income tax return about a township or other local tax.

so you guys do have a county or city tax? And that amount is roughly half of your state income tax withheld? Interesting!!!

[Serious Conversation]

Originally Posted by 49erfan916

so you guys do have a county or city tax? And that amount is roughly half of your state income tax withheld? Interesting!!!

It's based on the county. I lived and worked in Hamilton County. Hamilton County has a 1% county income tax rate. I lived in Clay Township. Best I can remember, I only filed taxes based on the county - the township, in my case, had nothing to do with it.

[Ivory Lee Spurlock]

County taxes must be a fairly new phenomenon in Indiana. When I lived in Indiana, I never heard of city/county/township taxes. I have an aunt and uncle who still live in Muncie and they have never said a word about city/county/township taxes, and they are the type of conservatives who pitch a fit at more taxes, so I think we would have heard something if they were being forced to file more tax returns.

[Serious Conversation]

Originally Posted by Ivory Lee Spurlock

County taxes must be a fairly new phenomenon in Indiana. When I lived in Indiana, I never heard of city/county/township taxes. I have an aunt and uncle who still live in Muncie and they have never said a word about city/county/township taxes, and they are the type of conservatives who pitch a fit at more taxes, so I think we would have heard something if they were being forced to file more tax returns.

I only lived there for three years, but they were there when I came in 2014.

I didn't mind paying a local tax. Hamilton County is kept up well. Madison County is somewhere in the 2% range, and it's a mess.

[MortonR]

Originally Posted by Ivory Lee Spurlock

County taxes must be a fairly new phenomenon in Indiana. When I lived in Indiana, I never heard of city/county/township taxes. I have an aunt and uncle who still live in Muncie and they have never said a word about city/county/township taxes, and they are the type of conservatives who pitch a fit at more taxes, so I think we would have heard something if they were being forced to file more tax returns.

County taxes have been around since at least the 1970s.

RM