State of Indiana Income Tax , Local Income Tax

1.
Income Tax

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tax rate for residents who live in

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tax rate for nonresidents who work in

has local income tax for residents, so residents of pay only the income tax and Federal income tax on most forms of income.

There is no income tax imposed on nonresidents who work in , although they may have to pay the resident local income tax in their own municipality.

2.
What is a local income tax?

A local income tax is a special tax on earned income collected by local governments like counties, cities, and school districts. Fourteen states including allow local governments to collect an income tax.

While the federal income tax and the income tax are progressive income taxes with multiple tax brackets, all local income taxes are flat-rate taxes which are the same for every taxpayer regardless of income.

Another major difference between local income taxes and federal or state taxes is that most local taxes are collected only on earned income, and not on capital gains or other non-earned income like interest and dividends.

3.
How do you pay the income tax?

The income tax is due on April 15th, when you file your federal and state tax returns. Because calculating your local income tax is relatively simple compared to your other tax returns, many tax preparers will file your income tax return for free.

If you file your own taxes, the tax collector will likely mail you a copy of the tax forms you need by April. Unfortunately, many leading e-file providers (like TurboTax and H&R Block) do not support local income taxes. may have a proprietary e-filing system you can use alongside your state and federal e-filing provider.

4.
Other local income taxes in

We have information on the local income tax rates in 0 localities. Use this list to compare the income tax with local income taxes in nearby cities. Click on any city or county for more details.