Indiana announces changes to local income tax rates

The Indiana Department of Revenue has issued a news release listing changes in county income tax rates, effective October 1, 2015, and updated guidance on how to compute withholding for state and county personal income tax to reflect the rate changes. The resident rate has increased for Blackford County from 0.0136% to 0.015%, for Greene County from 0.01% to 0.0125%, for Hendricks County from 0.014% to 0.015%, for Howard County from 0.016% to 0.0165%, for Putnam County from 0.015% to 0.0175%, and for Tipton County from 0.0158% to 0.0198%. The nonresident rate for Blackford County has decreased from 0.0061% to 0.005%, and the nonresident rate has increased for Greene County from 0.0025% to 0.005% and for Howard County from 0.0055% to 0.005625%.

Reminder: The Indiana tax rates are as follows: (1) before January 1, 2015–3.4%, (2) after December 31, 2014, and before January 1, 2017–3.3%, and (3) after December 31, 2016—3.23%. The notices are reproduced in this Report Letter on pages 9–11. (Indiana Department of Revenue, Departmental Notice #1, R25/10-15, September 2015; Indiana Department of Revenue, News Release, September 28, 2015; P.L. 80 (S.B. 1), Laws 2014, effective July 1, 2014.)

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