Poor Families in Indiana Are Hit Harder by the Income Tax Than Those in Other States
Indianas 1999 income tax threshold the income level at which families begin paying income tax:
Ranking among 42 states with income taxes
For two-parent families of four: $9,500.
For single-parent families of three: $9,000.
6th lowest (tie)
Indianas 1999 income tax on working-poor and near-poor families:
For families of four with incomes at the poverty line ($17,028): $341.
For families of three with incomes at the poverty line ($13,290): $248.
For families of three with minimum-wage earnings ($10,712): $116.
For families of four with incomes at 125% of the poverty line ($21,285): $486.
For families of three with incomes at 125% of the poverty line ($16,613): $361.
Despite progress, Indiana continues to tax families with incomes below the poverty line.
Indianas tax threshold for families of four more than doubled in 1997, but a substantial gap remains between the threshold and the poverty line.
In 1991, a family of four owed tax when its income exceeded 29 percent of the poverty line. For 1999, Indianas tax threshold has risen to 56 percent of the poverty line.