Four Indiana Counties Increase Income Tax Rates

Effective October 1, 2018, four Indiana counties – DeKalb, Floyd, Fulton, and Vigo – have increased their income tax rates [Indiana Department of Revenue, Departmental Notice No. 1, rev. 10-18].

Indiana counties impose an 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. Employers withhold state and county income taxes from employees’ wages.

The tax rate changes are:

• DeKalb – the rate increased to 0.0213 from 0.02;
• Floyd – the rate increased to 0.0135 from 0.0115;
• Fulton – the rate increased to 0.0238 from 0.0193; and
• Vigo – the rate increased to 0.02 from 0.0125.

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