Indiana brokerage account growth calculator

What a taxable index-fund account is actually worth after expense-ratio drag and after Indiana takes its share of the gain — which, in most states, is not at the federal preferential rate.

Indiana taxes your gains as ordinary income

There is no state equivalent of the federal preferential rate here — a long-term gain is charged at Indiana's normal income brackets, exactly like wages. This is the common case, and it surprises people who assume the federal 15% carries over. Long-term capital gains are taxed as ordinary income at the flat 2.95% state rate plus the county local income tax rate. Indiana begins from federal AGI, which already includes net capital gain in full, and the Indiana add-back and deduction schedules contain no preferential rate, no holding-period discount and no general capital gains exclusion. The federal preferential long-term rate does not carry over. A practical consequence specific to Indiana: because the county tax rides on the same base, an Indianapolis resident's total marginal rate on a long-term gain is 2.95% plus 2.02%, not 2.95%.