Update (Effective Jan. 1): Individual Income Tax Rates Change in Eleven Counties

Contact:  Emily Landis

Individual Income Tax Rates Change in Eleven Counties

Indianapolis (December 21, 2017) – Effective January 1, 2018, eleven Indiana county income tax rates will increase.
The eleven counties and new rates are as follows:

  • Bartholomew County: 0.0175, increased from 0.0125
  • Carroll County: 0.020733, increased from 0.017039
  • Decatur County: 0.0235, increased from 0.0133
  • Greene County: 0.0175, increased from 0.0125
  • Howard County: 0.0175, increased from 0.0165
  • Martin County: 0.0175, increased from 0.015
  • Montgomery County: 0.023, increased from 0.021
  • Orange County: 0.0175, increased from 0.0125
  • Putnam County: 0.02, increased from 0.0175
  • Scott County: 0.0216, increased from 0.0141
  • Vanderburgh County: 0.012, increased from 0.01

In addition, effective January 1, 2018, one Indiana county income tax rate will decrease.

  • Daviess County: 0.015, decreased from 0.0175

Local income tax rates are determined by county officials and reported to the Indiana Department of Revenue. Once reported, they are then reviewed for compliance with Indiana law.

These rates affect businesses with employees who live or work in any of these counties and have income tax withholdings. Each county’s tax rates for individuals are based on the employee’s Indiana county of residence as of January 1, 2018.

The list of rates for all Indiana counties is available on the Department of Revenue’s website at dor.IN.gov/reference/files/dn1.pdf.

Previous tax rates in 2017 can be found at dor.IN.gov/files/dn01.pdf.

Employers with questions about county income tax rates can contact the Department of Revenue at (317) 233-4016.