Effective Jan. 1, 2020, several Indiana county income tax rates will change.
The counties and new rates are as follows:
- Cass County: 2.7% (increased from 2.6%)
- Decatur County: 2.5% (increased from 2.35%)
- Fulton County: 2.68% (increased from 2.38%)
- Gibson County: 0.9% (increased from 0.7%)
- Hamilton County: 1.1% (increased from 1%)
- Henry County: 1.7% (increased from 1.5%)
- Jefferson County: 0.9% (increased from 0.35%
- Jennings County: 2.5% (decreased from 3.15%)
- Knox County: 1.2% (increased from 1%)
- Tippecanoe County: 1.28% (increased from 1.1%)
Local income tax rates are determined by county officials and reported to the Indiana Department of Revenue (DOR). Once reported, they are then reviewed for compliance with Indiana law.
These tax rates affect businesses with employees who live or work in any of these counties and have income tax withholdings. County tax rates for individuals are based on an employee’s Indiana county of residence as of Jan. 1, 2020.
The list of rates for all Indiana counties is available on DOR’s website in Departmental Notice #1 at www.dor.in.gov by clicking on “Legal Resources” select “Tax Library” then selecting “Departmental Notices.”
Employers with questions about these county income tax rates can contact DOR at (317) 233-4016, Monday through Friday, 8 a.m. to 4:30 p.m., EST.