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Two Indiana Counties Will Increase Income Tax Rates on October 1, 2021

By October 1, 2021January 14th, 2022State & Local Taxes

Effective October 1, 2021, the Indiana Department of Revenue has issued a new Departmental Notice No. 1How to Compute Withholding for State and County Income Tax. Two counties—Owen and Warrick—are increasing their county income tax rates.

  • Owen—increases to 0.025 from 0.016
  • Warrick—increases to 0.01 from 0.005

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.

Over the last several months, we have received requests from our clients to assist in these areas and we heard them loud and clear.  As a result, Thomas & Company now offers State & Local Tax Account Registration Services!  We have team members with 20+ years of experience in tax registrations and we would be happy to assist you!  See our recent announcement here.

If you are interested in Thomas & Company partnering with your team to provide these additional services, feel free to contact Jeremy Muchnick, our Director of Tax Recovery Services, at jmuchnick@thomas-and-company.com.

Jeremy Muchnick

Author Jeremy Muchnick

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