Project Overview Packet Business Math & Financial Literacy
State Tax Showdown
Indiana Standards Aligned
BM.2 • BM.4 • BM.8
Student Name: ______________________
Class Period: __________
Due Date: ______________
Project Mission: The Great American Relocation
Imagine you have been offered your dream business job with a starting salary of $60,000 . You are deciding whether to remain in Indiana or relocate to a state of your choice. You will investigate your target state's tax ecosystem—sales tax, income tax brackets, cost of living index, and public budget allocations—and mathematically compare your financial bottom line against Indiana's tax benchmarks.
Official Indiana Baseline Parameters (Benchmark State)
Fixed Benchmark
State Income Tax
3.05%
Flat Rate
State Sales Tax
7.00%
No Local Add-on
Avg. County Tax
1.75%
Local Income Rate
Cost of Living
100.0
Baseline Index
Project Milestones & Deliverables
1 Phase 1
State Selection
Claim target state & complete rationale worksheet.
2 Phase 2
Tax & Math Audit
Calculate exact tax obligations & cost variance.
3 Phase 3
Slide Construction
Build 7-slide presentation with real charts & visuals.
4 Phase 4
Showdown Pitch
Deliver 3-4 minute financial recommendation pitch.
Guiding Inquiry Questions
• Does a state with $0 income tax actually save you more money overall?
• How do sales tax rates and local city/county taxes alter annual expenses?
• How does the state spend its tax revenue (schools, roads, healthcare)?
• When factoring in housing and cost of living, which state provides higher real purchasing power?
Business Math • Indiana State Tax Showdown Page 1 of 2
Presentation Architecture
Slide-by-Slide Requirements
7 Required Slides
1 Title & Personal Rationale 10 Pts
State name, nickname, your name, class period, and a detailed 3-4 sentence explanation of why you chose this specific state (career, climate, lifestyle, family).
2 Tax Rates Breakdown 15 Pts
State income tax structure (flat, progressive brackets, or none), state sales tax rate, average local/city sales tax, and property/special tax notes.
3 Indiana Math Showdown 20 Pts
Side-by-side math simulation: On a standard $60,000 salary + $15,000 retail spending, calculate income tax and sales tax paid in Indiana vs. your chosen state. Show exact dollar differences!
4 Cost of Living Analysis 15 Pts
Compare Cost of Living Indices (Housing, Groceries, Utilities, Healthcare) against Indiana baseline (100). Explain what $60,000 is actually worth in your state.
5 Where the Taxes Go 15 Pts
State budget pie chart or breakdown illustrating how collected taxes are spent (K-12 & Higher Education, Transportation/Roads, Healthcare/Medicaid, Public Safety).
6 Visual State Showcase 10 Pts
High-quality image collage featuring state landmarks, major industries/employers, cities, natural attractions, and quality-of-life highlights.
7 Final Financial Verdict & Relocation Decision 15 Pts
Data-driven conclusion: Would you actually move to this state after analyzing both taxes and cost of living? Summarize the math trade-offs and provide your final recommendation.
Student Research Commitment & State Claim
Selected State for Research:
Primary City / Region in State:
Student Signature:
Teacher Approval:
Project Architecture & Agreement Page 2 of 2
Tax Research Organizer Business Math Inquiry Worksheet
Tax Data & Math Simulation
Standard: IN BM.2 & BM.8
Name: ________________
Period: ______
State: ________________
Capital/City: ___________
Part 1: State Tax System Comparison Matrix
Tax Category Indiana Benchmark Target State: ________________ State Income Tax Type Flat Rate (3.05%) [ ] None [ ] Flat [ ] Progressive Brackets Income Tax Rate(s) 3.05% of Adjusted Gross Rate or Bracket Range: _________________ State Sales Tax Rate 7.00% (State Level) State Rate: ________% Avg. Local / City Sales Tax 0.00% (No local sales tax) Local Rate: ________% (Combined: ______%) Grocery Tax Policy Exempt (0.00% tax on food) Food Tax: [ ] Exempt [ ] Taxed at _____ %
Part 2: Standardized Mathematical Tax Simulation
Base: $60,000 Salary • $15,000 Spending
Indiana Income Tax Calculation $60,000 × 3.05%
$$\text{Tax} = \$60,000 \times 0.0305 = \mathbf{\$1,830.00}$$
Target State Income Tax Work Show formulas below
Target State Income Tax = $ ________________
Indiana Sales Tax Calculation $15,000 × 7.00%
$$\text{Sales Tax} = \$15,000 \times 0.0700 = \mathbf{\$1,050.00}$$
Target State Sales Tax Work Combined rate × $15,000
Target State Sales Tax = $ ________________
Direct Annual State Tax Burden Showdown Total Tax = Income Tax + Sales Tax
Indiana Annual Total $2,880.00 ($1,830 + $1,050)
Target State Total $ ___________ (Sum of calculations)
Annual Difference (\(\Delta\)) $ ___________ [ ] IN Cheaper [ ] Target Cheaper
Tax Research & Math Simulation Worksheet Page 1 of 2
Purchasing Power & Budget Allocation
Cost of Living & Revenue Analysis
Standard: IN BM.4
Part 3: Cost of Living (COL) Index Analysis
Indiana Baseline Index = 100.0
Cost of Living Component Indiana Benchmark Target State Index % vs. Indiana Overall Cost of Living Composite
Slide Blueprint Guide Visual Presentation Standards
Slide Blueprint & Layout Guide
7 Required Slides
Follow these wireframe blueprints to design clean, professional slides in Google Slides, PowerPoint, or Canva.
16:9 Widescreen
1 Slide 1: Title & Personal Rationale Intro Hook
STATE FLAG
Personal Rationale Callout: 3-4 sentences on why you chose this state.
State Name & Official Nickname
Your Full Name, Course & Period
Compelling personal reason for state choice
2 Slide 2: State Tax Structure Policy Audit
Income Tax RATE / % Flat vs Brackets
Sales Tax RATE / % State + Local
Income tax classification (None, Flat, Graduated)
State sales tax + Average local add-on tax
Grocery/medicine tax exemptions note
3 Slide 3: Indiana Math Showdown Core Math
INDIANA ($60K) $2,880 Total
TARGET STATE $____ Total
DIFFERENCE: $ _____ / year ([ ] Cheaper • [ ] More Expensive)
Side-by-side math table with clear calculations
Annual dollar difference (\(\Delta\)) and percent variance
Clear breakdown of income tax vs. sales tax
4 Slide 4: Cost of Living (COL) Index Math
IN INDEX 100.0
vs.
STATE INDEX ____._
Salary needed for $60K lifestyle: $ ______
Housing, groceries, utilities index comparison
Equivalent salary calculation to match Indiana
Analysis of real purchasing power differences
Slide Blueprint Guide • Slides 1–4 Page 1 of 2
Visual Presentation Standards
Slide Blueprints 5–7 & Polish Rules
Showcase & Polish
5 Where Taxes Go
PIE CHART
• Education: __%
• Roads: __%
• Health: __%
Pie/bar chart of state budget expenditures and public services funded.
6 State Showcase
Photo 1
Photo 2
Photo 3
Photo 4
Collage of 4+ labeled images: landmarks, major industries, nature, and city life.
7 Final Verdict
VERDICT: MOVE / STAY
• Math Pro/Con Summary
• Final Relocation Decision
Data-backed synthesis comparing taxes, cost of living, and personal quality of life.
Analytic Grading Rubric Business Math Assessment Protocol
Analytic Project Rubric
100 Total Points
Student: ____________________
Target State: ________________
Evaluator: __________________
Evaluation Domain Exemplary (23–25 pts) Proficient (18–22 pts) Developing (13–17 pts) Novice (0–12 pts) 1. Math Rigor & Indiana Comparisons 25 Points Max 100% accurate tax math on $60k salary and $15k spending. Clear Indiana delta (\(\Delta\)) and COL formula accurately applied. Calculations mostly accurate with minor arithmetic error. Correct Indiana comparison process shown. Multiple calculation errors or incomplete formulas. Indiana comparison unclear or partially missing. Calculations missing, fundamentally flawed, or no Indiana comparison performed. 2. Tax Policy & Revenue Research 25 Points Max Exhaustive research of state income brackets, local sales tax add-ons, grocery rules, and detailed budget pie chart allocations. Accurate state income/sales tax rates identified. Budget spending categories clearly outlined with percentages. Basic rates provided but missing local tax nuances or budget allocation data is vague/unsupported. Inaccurate, missing, or superficial tax rates and revenue expenditure data. 3. Slide Architecture & Visual Design 25 Points Max All 7 slides beautifully formatted. High visual contrast, data tables, labeled budget charts, and 4+ curated picture showcase. All 7 slides completed. Clean layout, legible typography, includes required visual charts and picture slide. Missing 1 slide, cluttered layout, low visual contrast, or unlabelled image placeholders. Missing multiple slides, unformatted text blocks, or no images/visual charts included. 4. Synthesis, Rationale & Pitch 25 Points Max Compelling personal rationale; insightful relocation verdict balancing tax math and COL; professional, articulate 3-min pitch. Clear rationale for state choice, solid relocation verdict supported by data, confident presentation delivery. Superficial rationale or weak verdict without strong math support; rushed or quiet presentation. No personal rationale or verdict provided; incomplete or unprepared presentation pitch.
Analytic Grading Rubric • Core Domains Page 1 of 2
Assessment Validation
Standards Alignment & Score Sheet
Indiana Academic Standards
Indiana Comparison Reference Guide Benchmark Reference Dossier
Indiana State Tax Profile
Baseline State: IN
IC Title 6 Tax Code
Why Indiana is Your Benchmark:
Indiana uses a flat income tax system (every dollar of taxable income is taxed at the exact same percentage) paired with a 7% state sales tax and strict constitutional property tax caps. Your research must evaluate whether other states offer better overall financial efficiency.
State Individual Income Tax 3.05% Flat
• Statutory Rate: 3.05% (Indiana Code § 6-3-2-1).
• Personal Exemption: $1,000 per taxpayer + $1,500 per dependent child.
• Structure: Flat rate applies equally across all income levels with no progressive brackets.
State Sales & Use Tax 7.00%
• State Level: 7.00% gross retail tax.
• Local Sales Tax: 0.00% (No city or county sales tax permitted by law).
• Exemptions: Unprepared grocery food, prescription drugs, and medical devices are 100% tax-exempt.
County Income Taxes (LIT) Avg. 1.75%
Every Indiana county adopts an additional Local Income Tax (LIT). Rates range from 0.50% to 3.00% (e.g., Marion: 2.02%, Hamilton: 1.10%, Allen: 1.48%, Lake: 1.50%).
Property Tax "1-2-3" Caps 1% / 2% / 3%
Capped by constitutional amendment: 1% on owner-occupied homesteads, 2% on rental residential/farmland, and 3% on commercial business property.
Where Indiana Tax Dollars Go (State General Fund Budget Allocation)
50.2% K-12 Education Tuition support
15.8% Medicaid & Health Public healthcare
11.5% Higher Ed IU, Purdue, etc.
7.2% Corrections Public safety
15.3% General Gov Roads, parks, ops
Indiana Benchmark Reference Dossier Page 1 of 2
Comparative Analysis Tools
Comparing States to Indiana
Calculation Archetypes
Type A: Zero-Income States
(e.g., Texas, Florida, Tennessee, Washington) Taxes Paid: $0 on income. Watch out for: Higher sales tax rates (often 8–10% combined) and higher property tax rates.
Type B: Flat-Rate States
(e.g., Indiana 3.05%, Illinois 4.95%, Kentucky 4.0%, Michigan 4.25%)
