How it's done
The business climate is the general economic environment that local businesses operate in. Reviewing and understanding the local business climate provides valuable insights about the economy, costs, risks, and incentives that may impact the success of your business. This activity will guide you to better understand the business climate in Indianapolis and help you answer the following fundamental questions.
What is the business climate in Indianapolis?
We have compiled the most important aspects of Indianapolis’s business climate as an interactive dashboard below. This dashboard provides valuable economic, resident, household, dwelling and development indicators that may influence the success of your business.
Resident Indicator Population Growth Chart
What costs and assistance should I know about?
Whether you have a new or existing business it is critical to be aware of costs, incentives and grants that impact your business. This dashboard provides you with a snapshot of the major costs of conducting a business in Indianapolis and assistance available to Indianapolis businesses.
The viability of Indianapolis' strong business climate is creating a buzz for growth. There are no inventory or franchises taxes in the State. There is no tax on most business services. We have been ranked the 4th lowest property tax ranking in the U.S. and 9th best overall tax climate in the U.S. Below are a few key taxes:
- Indiana Corporate Adjusted Gross Income Tax: 6% (rate will decrease annually on July 1, resulting in a 4.9% rate on July 1, 2021)
- State Personal Income Tax: 3.23%
- Local Option Income Tax: 2.02%
- Indiana Sales and Use Tax: 7%
- Local Food and Beverage Tax: 2%
- Indiana Real and Personal Property Tax: Business property taxes are capped at 3% of the assessed value.
Prices for development varies based on the scope of project. Please check the OpenCounter tool which calculates the permits and licenses you need to open or expand a business.
Additionally, Develop Indy's Permitting and Regulatory Ombudsman can walk your company through the process and help determine fees upfront before engaging in the process.
According to the US Bureau of Labor Statistics, the average annual wage in the Indianapolis MSA is $49,115 in 2016. The average hourly wage is $22.52.
The Indianapolis region consistently ranks as one of the most affordable places to live and do business in the U.S. According to the National Assocation of Realtors, the median price of an existing single-family home in the Indianapolis MSA in 3rd quarter 2017 was $173,700. The Midwest average was $202,400 and the national average was $254,000. Our cost of living index is 92.5 (100 = US Average).
Whether you are a homegrown accelerating startup looking to expand, a thriving business looking to relocate, or find yourself somewhere in-between, we have the resources and connections to help you grow in Indy. Contact us to learn more!
111 Monument Circle, Suite 1950, Indianapolis, IN, 46204
How do I use this information?
Having access to business climate statistics and information is one thing, but it's quite another to use data effectively and in a way that will benefit your business. This next section will help you do just that. Learn how to use this information to make better business decisions.
Monitor the local business climate
On-going assessment of the business climate is an essential part of operating a competitive business. In any business climate, there are numerous factors outside your control that will impact your business, both positively and negatively. The health of the economy impacts all businesses, but small businesses usually feel the effect of economic changes faster than big businesses. Improvements in the economy typically provide a rapid increase in new opportunities for small businesses, while an economic downturn can have a significant and prolonged negative impact.
Unfortunately, you can’t influence the economy, but you can monitor the business climate indicators provided above and then take the necessary actions to minimise risks to your business. Staying up to date with the business climate can also help you identify new opportunities that your business can take advantage of.
Know your costs
All industries are unique and incur different types of costs when starting or operating. Understanding these costs is essential when it comes to setting prices, budgeting and planning for growth or downturns. We’ve provided some of the local costs associated with taxes, development and labor that often get overlooked by businesses. There may be other municipal and state costs that apply to your business so we encourage you to contact us to find out more.
Where can I learn more about the business climate?
While we are providing you with a range of valuable information about the business climate, the fact is that there's much more available. In this section we provide you with links to other websites that will supplement our information and help to keep your finger on the pulse.
There may also be other municipal and provincial costs that apply to your business so we encourage you to contact us to find out more.
Indiana Economic Development Corporation
Bureau of Economic Analysis – US Department of Commerce
Indiana Economic Development Corporation
Federal Reserve Economic Data (FRED)