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These five Indiana counties will see an increase in taxes



Indianapolis, Indiana – Beginning in October, the income tax rates for residents in five counties in Indiana will increase.

The Indiana Department of Revenue states that county officials set local income tax rates, which are then examined for conformity with state law by the department.

Boone, Johnson, and Monroe counties in central Indiana are affected by the changes. The other two counties are LaPorte and Knox.

These are the affected counties and rate changes:

• Boone County: 0.017 (up from 0.015)
• Johnson County: 0.014 (up from 0.012)
• Knox County: 0.017 (up from 0.012)
• LaPorte County: 0.0145 (up from 0.0095)
• Monroe County: 0.02035 (up from 0.01345)

Businesses that withhold income taxes from employees who live or work in one of the counties are impacted by the changes. Oct. 1, 2022, marks the implementation of the new rates.

County tax rates for persons are determined by the employee’s Indiana county of residence as of January 1, 2022, for residents of Indiana.

County tax rates are determined by the person’s county of major business or employment on January 1, 2022, for those who are not Indiana residents on that day.