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2017 Indiana Individual Income Tax Rate Changes Announced

Last updated on Thursday, December 15, 2016

(INDIANAPOLIS) - Effective January 1, 2017, the Indiana individual income tax rate is reduced from 3.3 percent to 3.23 percent.

Six counties also changed their county income tax rates effective on Jan. 1, 2017.

The rate changes are as follows:

Effective Jan. 1, 2017, the local income tax imposed by a county is the same for both residents and nonresidents.

For more information about this change, please review Departmental Notice #42, available online at www.in.gov/dor/reference/files/dn42.pdf.

Local income tax rates are established or adjusted by county officials and reported to the Indiana Department of Revenue, where they are cross-referenced to ensure they are supported by Indiana law.

The list of rates for all Indiana counties is available on the department's website at www.in.gov/dor/reference/files/dn01.pdf.

These rates affect businesses with employees who live or work in any of these counties and have income tax withholdings.

Employers with questions about these county income tax rates can contact the department at (317) 233-4016.

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