Individual Income Tax Rates Change in Several Counties

Effective Oct. 1, 2019, several Indiana county income tax rates will increase, according to the Indiana Department of Revenue (DOR). All rates were updated online on Sept. 24, 2019.

Local income tax rates are determined by county officials and reported to DOR. Once reported, they are then reviewed for compliance with Indiana law. Below are the counties impacted along with the new tax rates:

  • Clay County: 0.0235, increased from 0.0225
  • Clinton County: 0.0245, increased from 0.0225
  • Greene County: 0.0195, increased from 0.0175
  • Hancock County: 0.0194, increased from 0.0174
  • Hendricks County: 0.017, increased from 0.015
  • Johnson County: 0.012, increased from 0.01
  • Ohio County: 0.015, increased from 0.0125
  • Owen County: 0.014, increased from 0.013
  • Putnam County: 0.021, increased from 0.02
  • Sullivan County: 0.017, increased from 0.006
  • Whitley County: 0.016829, increased from 0.014829

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 the employee’s Indiana county of residence as of Jan. 1, 2019.

A complete list of current rates for all Indiana counties is available on DOR’s website in Departmental Notice #1 at www.dor.in.gov by clicking on the “Legal Resources” icon, then choosing “Tax Library” and selecting “Departmental Notices.”

Employers with questions about these county income tax rates are encouraged to contact DOR directly at (317) 233-4016, Monday through Friday, 8 a.m. to 4:30 p.m., EST.

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