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INDIANAPOLIS — Three central Indiana counties’ income tax rates will increase at the start of the new year, the Indiana Department of Revenue announced.

Local income tax rates are determined by county officials and provided to the Indiana Department of Revenue for review to ensure they are in compliance with state law.

Cass County, Madison County and Randolph County are the three counties whose new rates will take effect on Jan. 1, 2022.

The new rates are as follows:

  • Cass County will increase its income tax rate from .027 to .0295.
  • Madison County will increase its income tax rate from .0175 to .0225.
  • Randolph County will increase their income its income tax rate from .025 to .03.

These new tax rates affect businesses with employees who live or work in any of these counties and have income tax withholdings.

County tax rates for individuals are based on their Indiana county of residence. For individuals who are not Indiana residents, their county tax rates are based on their county of employment.

To see your county’s current tax rate, visit the DOR’s website at dor.in.gov in Departmental Notice #1. To view the complete list, click on “Legal Resources”, then “Tax Library”, followed by “Departmental Notices”.