Using the Indiana ePay system, you can now make all of your tax payments (including estimated tax payments if required), online. You can access a list of all Indiana counties and their income tax rates here. You are responsible for paying the local income tax to the county in which you work in addition to your federal and Indiana income tax returns - keep in mind that different income tax rates may apply to residents and nonresidents of the county. The Indiana personal exemption includes a $1,500 additional exemption for dependent children (the exemption for non-minor dependents is $1,000). The average income tax rate for counties and large municipalities is 1.16% (according to the Tax Foundation, weighted by income).
In Indiana, all counties except Lake County collect a local income tax in addition to the state and federal income taxes you already pay. You can learn more about how the Indiana income tax compares to other states' income taxes by visiting our map of income taxes by state. Indiana's maximum marginal income tax rate is the 1st highest in the United States, ranking directly below Indiana's %. Unlike the Federal Income Tax, Indiana's state income tax does not provide couples filing jointly with expanded income tax brackets. Indiana collects a state income tax at a maximum marginal tax rate of %, spread across tax brackets.
