Three counties to see individual income tax rate increases
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The Indiana Department of Revenue says individual income tax rates will increase in three Hoosier counties beginning next month. The rates are determined by county officials and submitted to the DOR for review.
The affected counties and their new tax rates include:
- Greene County: 0.0215 (increased from 0.0195)
- Montgomery County: 0.0265 (increased from 0.023)
- Perry County: 0.014 (decreased from 0.0181)
The DOR says the new tax rates affect businesses with employees who live and work in any of the affected counties and have income tax witholdings.
For those who are Indiana residents as of Jan. 1, 2023, the county tax rates for individuals are based on the employee’s Indiana county of residence on that date.
For those who are not Indiana residents on Jan. 1, 2023, the tax rates are based on that person’s county of principal business or employment on that date.
The latest update announcement comes three months after the DOR detailed individual income tax rate changes for five other counties: Boone, Johnson, Knox, LaPorte and Monroe.
You can find the current rates for all Indiana counties from the DOR by clicking here.