Effective January 1, 2019, eight Indiana county income tax rates will increase.
The eight counties and new rates are as follows:
- Carroll County: 2.2733%, increased from 2.0733%
- Cass County: 2.6%, increased from 2.5%
- Dearborn County: 1.2%, increased from 0.6%
- Grant County: 2.55%, increased from 2.25%
- Hancock County: 1.74%, increased from 1.70%
- Huntington County: 1.95%, increased from 1.75%
- Jennings County: 3.15%, increased from 2.50%
- White County: 2.32%, increased from 1.32%
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 is based on the employee’s Indiana county of residence as of January 1, 2019.
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 “Tax Library” under the “Legal Resources” tab on the left navigation and 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.