Residents in five Indiana counties will see their income tax rates rise starting in October.
According to the Indiana Department of Revenue, local income tax rates are determined by county officials and reviewed by the department for compliance with state law.
The changes include three central Indiana counties: Boone, Johnson and Monroe. LaPorte and Knox counties are the other two.
These are the affected counties and rate changes:
- Boone County: 0.017 (up from 0.015)
- Johnson County: 0.014 (up from 0.012)
- Knox County: 0.017 (up from 0.012)
- LaPorte County: 0.0145 (up from 0.0095)
- Monroe County: 0.02035 (up from 0.01345)
The changes affect businesses with employees who live or work in any of the counties and have income tax withholdings. The new rates go into effect on Oct. 1, 2022.
For Indiana residents, county tax rates for individuals are based on the employee’s Indiana county of residence on Jan. 1, 2022.
For individuals who are not Indiana residents on Jan. 1, 2022, county tax rates are based on the individual’s county of principal business or employment on that date.
To see your county’s current tax rate, visit the DOR’s website at dor.in.gov in Departmental Notice #1. To view the complete list, click on “Legal Resources” and then “Tax Library,” followed by “Departmental Notices.”