Ladd Dental Group

B usiness taxes in Indiana have not increased over the past 5 years—on paper, they’ve actually decreased or stayed very stable. But the effective tax burden on dental practices has still gone up due to a combination of local taxes , wage inflation , and structural changes in how practices are taxed. Let’s break it down clearly. 1) What’s actually happened to Indiana business tax rates (last ~5 years) Corporate income tax 2020: ~5.25% 2021–present: 4.9% 👉 That’s roughly a 0.35% decrease (~7% relative reduction) over 5 years. Pass-through business taxation (most dental practices ) Most dental practices (LLCs, S-corps) don’t pay corporate tax. They flow through to: State income tax: ~3.23% (2020) → ~3.05% (2024) → trending to 3.0% Local (county) income tax: ~1–3% depending on county 👉 Slight decline at the state level , but: Local taxes have crept up in many counties Combined effective rate often still ~4–6%+ Sales tax (relevant to dental ops) ...