Cost of Doing Business

The cost of doing business in Marshall County is among the lowest in Indiana, making it one of the most attractive counties in the state for operating a business. 
 
The tax burden, while low across Indiana, is even lower in Marshall County. The average tax rate for real and personal property taxes is 1.51%, while the state average is 1.89%. Marshall County also boasts lower local income taxes with an average rate of 1.25% compared to the state average of 1.5%. 

Marshall County’s excellent transportation systems, including three U.S. highways and seven Indiana highways, ensure that businesses can quickly connect to both to their customers and suppliers of raw materials. These highways provide access to all major Midwest markets and to a population of over 30 million people within a half day drive.    

Other factors that make Marshall County even more cost competitive than the state include lower average hourly wages coupled with a lower cost of living for its residents. Businesses looking to grow operations, relocate, or start a new business in Marshall County will be given immediate attention lessening the amount of time required for a business to begin operations.

But perhaps the best indicator of the cost savings for Marshall County businesses is that there was only one major business closing during the great recession.   

 
The chart below compares the cost of doing business in Indiana with states across the Midwest. 
 
State and Local Taxes & Other Factors
 Indiana 
   Michigan  
  Ohio  
 Kentucky  
 Illinois 
 Iowa
 Wisconsin 
Corporate Income Tax Rate
6.25%1
6%
0.26%
4-6%
 7.75%
6-12%
7.9%
Individual Income Tax Rate
3.3%2
4.25%
 0.5-5% 
2-6%
3.75%
 0.36-8.98%
4-7.65%
Local Average Individual Income Tax Rate3
1.56%
1.75%
2.25%
2.1%
None
0.45%
None
State Sales Tax Rate
7%
6%
5.75%
6%
6.25%
6%
5%
Inventory Tax
NoPartial
No
Yes
No
No
No
Local Average Sales Tax Rate
0%
0%
1.39%0%
2.39%
0.79%
0.41%
Unemployment Insurance Tax - New Employee Rate
2.5%
2.7%
2.7%
2.7%
3.75%
1%
3.6-4.1%
Worker's Compensation Premium Rate Index (Per $100 of Payroll)
$1.06
$1.68
$1.74
$1.51
$2.35
$1.88
$1.92
Mean Hourly Wage
$21.21
$23.93
$22.40
$20.77
$27.01
$20.93
$21.75
Cost of Living Index4
99.1
100.6
98.5
95.5
112.1
100.2
101.9
Source: Indiana Economic Development Corporation (updated 9/19/2016)
1Indiana's corporate income tax rate will decrease to 4.9% by 2021.
2Indiana's individual income tax rate will decrease to 3.23% by 2017. 
3The effective local income tax rates for the states are averages calculated by taking the mean of the income tax rate in the most populous city and the capital city. 
4ACCRA Cost of Living Index. 
 
 
Indiana is consistently ranked as one of the best states for business by CNBC, Forbes, Chief Executive, and the Tax Foundation.
  • The 2017 Tax Foundation "State Business Tax Climate" ranking rates Indiana as the 8th best state in the nation  (for the third year in a row) and the 2nd in the Midwest behind only South Dakota.
                                                                                                                                                  Source
  • The 2016 CNBC rankings list Indiana as the #1 best state in the nation for the "Cost of Doing Business" (for the second year in a row), 1st for "Infrastructure," 8th for "Cost of Living," 13th for "Business Friendliness," and 16th for the "Overall Top States for Businesses."        

  • The 2016 Chief Executive's "Best Place for Business" rankings show Indiana at 5th place nationally, up from 6th place last year. Indiana ranks 1st in the Midwest making it the only state in the Midwest in this publication's top five states.
  • The 2016 Area Development magazine rankings list Indiana as the 8th "Top State for Doing Business" in the U.S. per a site selector survey. In addition, the state ranked 1st in most improved economic development policies, 6th in speed of permitting, 7th in cooperative & responsive state government, 8th in favorable regulatory environment, 8th in leading workforce development programs, 9th in business incentive programs, and 10th in overall cost of doing business.
  • The 2015 Site Selection magazine "Business Climate" rankings listed Indiana as the 9th best overall (up from 13th last year), and 3rd best in "New Plant Rank - Jan. to Aug." (up from 5th last year), in the U.S.
  • The 2014 Forbes "Best States for Business" rankings list Indiana as the 10th best state for "Business Costs" (up from 11th in 2013) and the 3rd best state for "Regulatory Environment."
 
Local Tax Rates

Real and personal property tax is assessed at 100 percent of market value. Homeowner property taxes are capped at 1 percent of assessed value, and business property taxes are capped at 3 percent of assessed value. The local tax rates listed below are for both real and personal property for the year 2015. These rates are likely to change in 2016. Taxation is charged on each $100 worth of assessed value. 
 
 2015 Property Tax Rates
 District    
Rate
 Cities and Towns
 
   Plymouth (Center Township)
 3.0051
   Plymouth (West Township)
 2.9856
   Bremen  2.5376
   Bourbon  3.1799
   Argos (Greene Township)
 3.4535
   Argos (Walnut Township)
 3.4750
   Culver  1.5470
   LaPaz  1.9286