If Indiana is going to try to steal retail business from a surrounding state, it had better be Illinois. According to the Tax Foundation, Indiana's combined state and local sales tax rates of 7 percent ranks it 19th highest in the nation (Tennessee is No. 1 with 9.41 percent and five states tie for last with zero). That makes us higher than all adjacent states (Kentucky, 6 percent; Ohio, 6.83 percent; and Michigan, 6 percent) except Illinois at 8.4 percent (sixth highest in the nation).
