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06 November 2018

Indiana county income tax rate changes effective October 1, 2018

The Indiana Department of Revenue announced that the counties of DeKalb, Floyd, Fulton, and Vigo have changed their local withholding income tax rates effective October 1, 2018.??

The changes are as follows:?

  • DeKalb — The rate increased from .02 to .0213.??
  • Floyd — The rate increased from .0115 to .0135.
  • Fulton — The rate increased from .0193 to .0238.?
  • Vigo — The rate increased from .0125 to .02.??

Additional changes may be announced as of January 1, 2019.?

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 a county pay at one local income tax rate, increasing the local taxes paid by nonresidents. (EY Payroll Newsflash Vol. 17, #230, 12-21-2016.)??

For more information, see Department Notice #42.?

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Advisory Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)
   • Debbie Spyker (deborah.spyker@ey.com)

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ATTACHMENT

EY Payroll News Flash

Document ID: 2018-2222

 

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