Income Tax Rates Rising in Three Counties

Residents in three Indiana counties will see their income tax rates increase at the first of the year. The Indiana Department of Revenue says local income tax rates are determined by county officials and provided to DOR for compliance review.

The affected counties:

• Cass County: 0.0295, increased from 0.027
• Madison County: 0.0225, increased from 0.0175
• Randolph County: 0.03, increased from 0.025

The DOR says these tax rates affect businesses with employees who live or work in these counties and have income tax withholdings. As of January 1, 2022, individual county tax rates are based on an employee’s Indiana county of resident and for non-Indiana residents on Jan. 1, 2022, tax rates are based on the person’s county of principal business or employment.

Current rates for all Indiana counties are available here.