The Indiana Department of Revenue announced that the counties of Clay, Clinton, Dubois, Fayette, Greene, Hancock, Hendricks, Johnson, Ohio, Owen, Putnam, Sullivan, and Whitley have changed their local withholding income tax rates effective October 1, 2019.

The changes are as follows:

• Clay — The rate increased from .0225 to .0235.
• Clinton — The increased from .0225 to .0245.
• Dubois — The rate increased from .01 to .012.
• Fayette — The rate increased from .0237 to .0257.
• Greene — The rate increased from .0175 to .0195.
• Hancock — The rate increased from .0174 to .0194.
• Hendricks — The rate increased from .015 to .017.
• Johnson — The rate increased from .01 to .012.
• Ohio — The rate increased from .0125 to .015.
• Owen — The rate increased from .013 to .014.
• Putnam — The rate increased from .02 to .021.
• Sullivan — The rate increased from .006 to .017.
• Whitley — The rate increased from .014829 to .016829.

Additional changes may be announced as of January 1, 2020.

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.

State income tax rate remains at 3.23%

As we previously reported, 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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