Hi,
I'm not sure if you're saying that the issue is that customers outside Indiana are taxed when they should not, or if the issue is that the customers see the tax in the emails while they don't see it in the checkout, or if the issue is that the text VAT is shown in the email notifications although you changed it in the translations (actually I do see it correct in your screenshot, so it must not be that).
If customers outside Indiana are taxed when they should not, it means that your tax rule(s) is not configured properly. We would need a screenshot of your tax rules listing to be able to say more on the issue.