Wednesday, December 18, 2013

Revenue Reports Three Counties Change Local Income Tax Rates

Three Counties Change
Local Income Tax Rates

INDIANAPOLIS (Dec. 16, 2013) – Benton, Brown and Vermillion counties changed their county income tax rates, which will become effective Jan. 1, 2014.
The changes are:
  • Benton – The resident rate has decreased from .0229 to .0179.
  • Brown – The resident rate has increased from .022 to .023955.
  • Vermillion – The resident rate has increased from .001 to .002. The nonresident rate has increased from .001 to .002.
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.
Beginning Jan. 1, 2014, these rates affect businesses with employees who live or work in any of these counties and have income tax withholdings. The list of rates for all Indiana counties is available on the Indiana Department of Revenue’s website at www.in.gov/dor/files/dn01.pdf.
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. 
Employers with questions about these county income tax rates can contact the department at (317) 233-4016.