INDIANAPOLIS -- Seven Indiana counties will see their income tax rates increase starting October 1.
Indiana is one of only 14 states that impose a local income tax. The tax is taken out of a person’s paycheck in addition to the state and federal taxes. Local income tax rates are determined by county officials and reported to the Indiana Department of Revenue.
The seven counties and new rates are as follows:
- Allen County: 0.0148, increased from 0.0135
- Clinton County: 0.0225, increased from 0.02
- Fountain County: 0.021, increased from 0.0155
- LaGrange County: 0.0165, increased from 0.014
- Marion County: 0.0202, increased from 0.0177
- Sullivan County: 0.006, increased from 0.003
- Vermillion County: 0.015, increased from 0.002
These rates affect businesses with employees who live or work in any of these counties and have income tax held from their paychecks. Each county’s tax rates for individuals is based on the employee’s Indiana county of residence as of January 1, 2017.
Local income taxes are used to fund local programs such as education, parks and community improvement.
The list of rates for all Indiana counties is available on the Department of Revenue’s website.
You can find previous tax rates in 2017 HERE.
Employers with questions about county income tax rates can contact the Department of Revenue at (317) 233-4016.
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