Statewide — Effective Jan. 1, 2021, six Indiana county income tax rates will increase, according to the Indiana Department of Revenue (DOR). Local income tax rates are determined by county officials.
Counties that will have new tax rates:
• Martin County: 0.025 (increased from 0.0175)
• Owen County: 0.016 (increased from 0.014)
• Randolph County: 0.025 (increased from 0.0225)
• Shelby County: 0.016 (increased from 0.015)
• Switzerland County: 0.0125 (increased from 0.01)
• Union County: 0.02 (increased from 0.0175)
These tax rates affect businesses with employees who live or work in any of these counties and have income tax withholdings. If you live in Indiana, county tax rates for individuals are based on the employee’s Indiana county of residence on that date. If you live outside of Indiana, county tax rates are based on the individual’s county of principal business or employment on Jan. 1. A complete list of current rates for all Indiana counties is available on DOR’s website by clicking here.
