Tuesday, October 12, 2010

Indiana Updates County Income Tax Rate Notice

The Indiana Department of Revenue has updated its list of Indiana counties that have adopted county income taxes with those counties that have changed their rates. The rates are effective for withholding purposes for periods beginning on or after October 1, 2010. The rates apply to wages paid after September 30, 2010, and the tax is withheld and paid at the same time and in the same manner as the state income tax. While this list is for those counties whose income tax rates are changed and effective October 1, 2010, counties can elect to change their rates November 1 and December 1. (Indiana Departmental Notice 1, 10/01/2010; County Tax Changes Coming October 1, Indiana Department of Revenue, 09/01/2010.)

County rate changes. Effective October 1, 2010, the following counties have changed their county income tax rates, resulting in following resident and nonresident rates: Cass County, 0.025 resident and 0.005 nonresident; Hancock County, 0.011 resident and 0.0035 nonresident; and Jay County, 0.0295 resident and 0.006 nonresident.

Withholding questions. For questions about the withholding of state or county taxes, contact the Indiana Department of Revenue at (317) 233-4016.

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