Benjamin Franklin said, "nothing is certain except death and taxes" and we are not sure truer words have ever been spoken. We have learned that, according to the Indiana Department of Revenue, individual income tax rates are increasing in two counties in Indiana.

According to the press release from the Department of Revenue, the income tax rate increase will take effect Friday, October 1, 2021. Both Warrick and Owen Counties will be seeing a slightly higher tax rate. Owen County will increase from 0.016 to 0.025 and in Warrick County the tax increases from 0.005 to 0.01.

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The tax rates apply to payroll from businesses whose employees live or work in either Warrick or Owen Counties and are subject to income tax withholdings. The Department of Revenue clarifies,

  • For Indiana residents on Jan. 1, 2021, county tax rates for individuals are based on the employee’s Indiana county of residence on that date.
  • For individuals who are not Indiana residents on Jan. 1, 2021, county tax rates are based on the individual’s county of principal business or employment on Jan. 1.

If you would like to see a complete list of the current tax rates for counties across the Hoosier State, you can visit the Department of Revenue website. From there, you will click Legal Resources, select Tax Library and then choose Departmental Notices. The current tax rates are located in "Departmental Notice #1."

If you are wondering who is responsible for the tax increases, well, that falls to the county officials. According to the Department of Revenue, county officials determine the local income tax rates and then pass those decisions on the DOR for review to ensure compliance with Indiana Tax laws.

[SOURCE: Indiana Department of Revenue]

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