Six Indiana counties will see an increase in their income tax rate at the beginning of 2021.
Local income rates are determined by county officials and provided to the Indiana Department of Revenue for review to make sure they are in compliance with state laws.
The following counties will see income tax rate increases, effective January 1st:
- Martin County: 0.025 (increased from 0.0175)
- Owen County: 0.016 (increased from 0.014)
- Randolph County: 0.025 (increased from 0.0225)
- Shelby County: 0.016 (increased from 0.015)
- Switzerland County: 0.0125 (increased from 0.01)
- Union County: 0.02 (increased from 0.0175)
These tax rates affect businesses with employees who live or work in any of these counties and have income tax withholdings.
County tax rates for individuals are based on their county of residence as of January 1st, 2021.
For those who aren’t Indiana residents on January 1st, county tax rates are based on the individual’s county of principal business or employment on January 1st.
