The following news release was issued by the Indiana Department of Revenue on September 28, 2016:
Monroe, Parke and Posey counties changed their county income tax rates. These changes take effect on Oct. 1, 2016.
The rate changes are as follows:
- Monroe – The resident rate increased from .01095 to .01345. The nonresident rate increased from .0027375 to .0033625.
- Parke – The resident rate increased from .0245 to .0265. The nonresident rate is unchanged.
- Posey – The resident rate increased from .01 to .0125. The nonresident rate increased from .00625 to .006875.
Local income tax rates are established or adjusted by county officials and reported to the Indiana Department of Revenue, where they are cross-referenced to ensure they are supported by Indiana law.
The list of rates for all Indiana counties is available on the department’s website at www.in.gov/dor/reference/files/dn01.pdf. These rates affect businesses with employees who live or work in any of these counties and have income tax withholdings.
This is the last Departmental Notice #1 that will list separate resident and nonresident rates. Effective January 1, 2017, the local income tax imposed by a county is the same for both residents and nonresidents. For more information about this change, please review Departmental Notice #42, available online at www.in.gov/dor/reference/files/dn42.pdf.
Employers with questions about these county income tax rates can contact the department at (317) 233-4016.