Effective Jan. 1, 2022, three Indiana county income tax rates will increase, according to the Indiana Department of Revenue (DOR).
Local income tax rates are determined by county officials and provided to DOR for review regarding compliance with Indiana law.
Below are the three counties impacted along with their new tax rates:
Cass County: 0.0295 (increased from 0.027) Madison County: 0.0225 (increased from 0.0175) Randolph County: 0.03 (increased from 0.025)These tax rates affect businesses with employees who live or work in any of these counties and have income tax withholdings.
For Indiana residents on Jan. 1, 2022, county tax rates for individuals are based on the employee’s Indiana county of residence on that date. For individuals who are not Indiana residents on Jan. 1, 2022, county tax rates are based on the individual’s county of principal business or employment on Jan. 1.Current rates for all Indiana counties are available on DOR’s website at dor.in.gov in Departmental Notice #1.
To view the complete list, click on “Legal Resources”, then “Tax Library”, followed by “Departmental Notices”.
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