2015 Indiana Individual Income Tax Rate Changes Announced

Last updated on Friday, December 19, 2014

(INDIANAPOLIS) - Effective Jan. 1, 2015, the Indiana individual income tax rate will be reduced to 3.3 percent from 3.4 percent.

Eight counties also have changed their county income tax rates effective Jan. 1, 2015.

The county changes are as follows:

Adams - The resident rate increases from 0.01124 to 0.01624. The nonresident rate increases from 0.00674 to 0.00799.
Elkhart - The resident rate increases from 0.015 to 0.02.
Jennings - The resident rate increases from 0.0125 to 0.0175.
Knox - The resident rate is reduced from 0.011 to 0.01. The nonresident rate is reduced from 0.0065 to 0.0055.
Marion - The resident rate increases from 0.0162 to 0.0177. The nonresident rate increases from 0.00405 to 0.004425.
Parke - The resident rate increases from 0.023 to 0.0245.
Randolph - The resident rate increases from 0.015 to 0.0225.
Wabash - The nonresident rate is reduced from 0.0075 to 0.005.

Local income tax rates are established or adjusted by county officials and reported to the Department of Revenue, where they are cross-referenced to ensure they are supported by Indiana law.

The list of rates for all Indiana counties is available on the Indiana Department of Revenue's website. These rates affect businesses with employees who live or work in Indiana and have income tax withheld from paychecks.

Employers with questions about county income tax rates can contact the department at (317) 233-4016.

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