Two Indiana counties will see a decrease in their income tax rate beginning October 1. The rates affect businesses with employees who live or work in the county and have income tax withholdings.
Local income taxes are set by county officials and submitted to the Indiana Department of Revenue for compliance review. The rate for individuals is based on an employer’s county of residence as of January 1, 2020.
Counties with new rates:
- Pulaski County: 0.0285 (decreased from 0.0338)
- Wayne County: 0.0125 (decreased from 0.015)
A list of rates for each Indiana county is available here.