(INDIANAPOLIS) – Effective Oct. 1, 2020, two Indiana county income tax rates will decrease, according to the Indiana Department of Revenue (DOR).
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 two counties impacted along with the new tax rates:
- Pulaski County: 0.0285, decreased from 0.0338
- Wayne County: 0.0125, decreased from 0.015
These tax rates affect businesses with employees who live or work in any of these counties and have income tax withholdings. For individuals who are Indiana residents on Jan. 1, 2020, county tax rates are based on the individual’s Indiana county of residence on that date. For individuals who are not Indiana residents on Jan. 1, 2020, county tax rates are based on the individual’s county of principal business or employment on January 1.
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 the “Departmental Notices” tab.
Employers with questions about these county income tax rates are encouraged to contact DOR directly at (317) 232-2240, Monday through Friday, 8 a.m. to 4:30 p.m. EST.