Effective January 1, 2019, the Indiana Department of Revenue has issued a new Departmental Notice No. 1. Eight counties – Carroll, Cass, Dearborn, Grant, Hancock, Huntington, Jennings, and White will increase their county income tax rates for 2019 [DOR, Departmental Notice No. 1, How to Compute Withholding for State and County Income Tax, rev. 12-18].
All 92 of Indiana’s counties impose a county income tax on residents of the county and on nonresidents (who do not reside in another Indiana county) with a principal place of business or employment in the county. Each county has one county income tax rate (i.e., tax rates are the same for residents and nonresidents). Employers withhold state and county income taxes from employees’ wages.
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