Indiana tax payment plan in INTIME
With Indiana’s Department of Revenue, the amount you owe decides how long a payment plan lasts: 12 months for smaller balances and 36 months once the bill passes $5,000.
- Lowest amount for individuals
- Amounts over $100
- Lowest amount for businesses
- Amounts over $500
- Longest term offered
- A term of 36 months
- 2026 interest
- 7% a year
Your balance determines how long the plan runs
In Indiana, you cannot pick any plan length you want. For individual income tax, fixed tiers are listed on the DOR payment plans page:
- $100 or less: pay in full.
- $101 to $1,000: up to 12 months.
- $1,001 to $5,000: up to 24 months.
- $5,001 and above: up to 36 months.
Business taxes follow similar tiers
A business tax balance of $500 or less must be paid in full. A balance of $501 to $1,000 can be paid off over 12 months at most. Tiers of 24 months and 36 months match the individual table shown on the DOR plans page.
How to set up a plan in INTIME
After your return has been processed, plans are built in INTIME, DOR’s online tax portal. You do not need to wait for a bill. Create an INTIME logon. Then follow the payment plan steps in the portal.
Balances that arrive later are not added to your plan automatically. Ask DOR Customer Service to add it to a plan you already have, as the plan guidance explains.
The 10% penalty and interest keep applying
A payment plan spreads out the bill, not the charges. The collection process page says the 10% penalty still applies and that interest keeps growing until you pay off the debt. For Indiana, the rates, fees and penalties page sets the penalty for failure to pay at whichever amount is larger: 10% of the unpaid tax or $5.
Each year, the interest rate is set again. Departmental Notice #3 gives 7% for 2026 and 6% for 2027.
What does a tax warrant mean in Indiana?
A bill passes through a Notice of Proposed Assessment, then a Demand for Payment and ends with a tax warrant. Leave the Demand for Payment letter unpaid and your account goes to the county sheriff or to United Collection Bureau, DOR’s partner in collections.
An arrest warrant is something different from a sheriff’s tax warrant. Wherever you hold assets, the county clerk gets it. Your credit reports and title searches will show it. It also puts a lien on your property. You may also have to pay added fees and clerk costs. If it goes unpaid, the sheriff may auction property, levy a bank account or garnish wages. You can still arrange a payment plan of up to one year with the sheriff or set one up in INTIME.
If you owe the IRS too and a plan is out of reach
DOR’s Taxpayer Advocate Office offers a Hardship program to anyone who has recently lost a job, been through a disaster, might lose income or faces a critical illness. The program cannot erase what you owe in taxes. Offers in Compromise fall under it too and they settle debts for less than the whole amount. You can also ask for a penalty abatement in INTIME.
Any IRS plan you have stays apart from your Indiana plan. Each agency bills you on its own schedule. You will make two payments each month until each balance is cleared.
States in the area
Do you owe money to DOR and to the IRS?
Do you owe money to Indiana DOR and to the IRS at once? A free call lets a licensed tax pro match both plans to what you can afford.
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