The Indiana Department of Revenue announced that the counties of Allen, Clinton, Fountain, LaGrange, Marion, Sullivan and Vermillion have changed their local withholding income tax rates effective October 1, 2017.

The changes are as follows:

— Allen — The rate increased from .0135 to .0148.

— Clinton — The increased from .02 to .0225.

— Fountain — The rate increased from .0155 to .021.

— LaGrange — The rate increased from .014 to .0165.

— Marion — The rate increased from .0177 to .0202.

— Sullivan — The rate increased from .003 to .006.

— Vermillion — The rate increased from .002 to .015.

Additional changes may be announced as of January 1, 2018.

Local income tax rates consolidated

As we previously reported, 2015 HB 1485 required that local income taxes collected by Indiana counties be consolidated into one local income tax rate per county.

The bill also required that both residents and nonresidents living and/or working in the county pay at one local income tax rate, increasing the local taxes paid by nonresidents.

For more information, see Department Notice #42.

State income tax rate decreased in 2017

The state individual income tax rate was reduced from 3.4% to 3.3% effective for calendar years 2015 and 2016, and was further reduced to 3.23% for 2017 and later years. (HB 1001, PL 205, signed by the governor on May 8, 2013.)

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