UPDATE: Several Counties Change
Local Income Tax Rates
Lake County Adopts First County Income Tax
INDIANAPOLIS (Oct. 1, 2013) – Allen, Hancock, Jasper and Washington counties changed their county income tax rates, which are effective Oct. 1, 2013. Lake County has adopted a new county income tax effective Oct. 1, 2013.
The changes for Allen, Jasper and Washington counties are as follows:
- Allen – The resident rate has increased from .01 to .0135. The nonresident rate has increased from 0.0055 to 0.006375.
- Hancock – The resident rate has increased from .0155 to .0165. The nonresident rate has increased from .0035 to .0045.
- Jasper – The resident rate has decreased from .03114 to .02964.
- Washington – The resident rate has increased from .015 to .02.
In addition to those that changed their rates, Lake County is the final county in Indiana to adopt a county income tax rate. Lake County has adopted a resident rate of .015 and a nonresident rate of .0025, effective Oct. 1, 2013.
Local income tax rates are established or adjusted by county officials and reported to the 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 Indiana Department of Revenue’s website. These rates affect businesses with employees who live or work in any of these counties and have income tax withholdings.
The Indiana law that allows counties’ local tax rates to change throughout the year has new effective dates, per the 2013 legislation. Now, rates adopted by the county:
- After Dec 31 and before Sept 1 take effect on Oct 1.
- After Aug 31 and before Nov 1 take effect on Jan 1 of the following year.
Unlike previous years, no ordinance can be adopted Nov 1 through Dec 31.The Indiana Department of Revenue will publish further rate changes (if any) to its website on Jan 1.
Employers with questions about these county income tax rates can contact the department at (317) 233-4016.
