---
title: Six Indiana Counties Will Increase Income Tax Rates on January 1
description: "Effective January 1, 2021, the Indiana Department of Revenue has issued a new Departmental Notice No. 1 with county income tax rate increases in six counties: Martin, Owen, Randolph, Shelby, Switzerland, and Union."
---

[Pay News Now](https://blogs.payroll.org/pay-news-now)

# [Six Indiana Counties Will Increase Income Tax Rates on January 1](https://blogs.payroll.org/pay-news-now/six-indiana-counties-will-increase-income-tax-rates-on-january-1)

 Written by [Lia Coniglio, Esq.](https://blogs.payroll.org/pay-news-now/author/lia-coniglio-esq) | Dec 23, 2020 3:00:00 PM

Effective January 1, 2021, the Indiana Department of Revenue has issued a new [**Departmental Notice No. 1**](https://www.in.gov/dor/files/reference/dn01.pdf), *How to Compute Withholding for State and County Income Tax.* Six counties – Martin, Owen, Randolph, Shelby, Switzerland, and Union – are [**increasing their county income tax rates**](https://events.in.gov/event/annual_funding?utm_campaign=widget&utm_medium=widget&utm_source=State+of+Indiana).

- Martin County—increases to 0.025 from 0.0175
- Owen County—increases to 0.016 from 0.014
- Randolph County—increases to 0.025 from 0.0225
- Shelby County—increases to 0.016 from 0.15
- Switzerland County—increases to 0.0125 from 0.01
- Union County—increases to 0.02 from 0.0175

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.

Interested in more state and local payroll coverage? APA’s [***PayState Update***](https://ebiz.americanpayroll.org/ebusiness/ProductCatalog/Product.aspx?ID=19) eNewsletter is perfect for you.

*Lia Coniglio, Esq., is Managing Editor of PayState Update and Manager of State Payroll Information Resources for the APA.*

[View full post](https://blogs.payroll.org/pay-news-now/six-indiana-counties-will-increase-income-tax-rates-on-january-1)

```json
{
  "@context" : "http://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Lia Coniglio, Esq."
  },
  "dateModified" : "2020-12-23T15:00:10.146Z",
  "datePublished" : "2020-12-23T15:00:00Z",
  "headline" : "Six Indiana Counties Will Increase Income Tax Rates on January 1",
  "image" : {
    "@type" : "ImageObject",
    "height" : 400,
    "url" : "https://www.americanpayroll.org/images/default-source/default-album/indianastate.jpg?sfvrsn=dab38f91_0",
    "width" : 800
  },
  "mainEntityOfPage" : "https://blogs.payroll.org/pay-news-now/six-indiana-counties-will-increase-income-tax-rates-on-january-1",
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "height" : 60,
      "url" : "/hs/hsstatic/content_shared_assets/static-1.4092/img/default-amp-logo.png",
      "width" : 60
    },
    "name" : "Pay News Now"
  }
}
```