30 March 2022 Indiana law lowers personal income tax rate in 2023 and 2024; new local taxes may be imposed for emergency medical services Indiana Governor Eric Holcomb signed into law HB 1002 that lowers the personal income tax rate from the current 3.23% to 3.15% in 2023 and 2024. For taxable years beginning after December 31, 2024 additional reductions in the tax rate gradually apply if budget conditions are met until the rate potentially reaches 2.9% by 2029. The legislation is estimated to save Indiana taxpayers $40 per year based on income of $50,000 and $165 per year if the lowest tax rate of 2.9% goes into effect. Governor Holcomb also signed into law HB 1246 that, effective July 1, 2022, authorizes Indiana counties to impose a local income tax of not more than 0.2% for emergency medical services provided within the county. To impose the local income tax, the county must provide emergency medical services for all local units in the county and pay 100% of the costs to provide those services. The emergency services local tax may not be in effect for more than 25 years. For the latest information about Indiana state and local income tax withholding see the Indiana Department of Revenue website.
Document ID: 2022-0497 | |||||||||
