Effective October 1, 2020, the Indiana Department of Revenue has issued a new Departmental Notice No. 1, How to Compute Withholding for State and County Income Tax. Two counties are decreasing their county income tax rates:
- Pulaski County – decreases to 0.0285 from 0.0338
- Wayne County – decreases to 0.0125 from 0.015
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 eNewsletter is perfect for you.
Lia Coniglio, Esq., is Managing Editor of PayState Update and Manager of State Payroll Information Resources for the APA
