TAXES 22-31, Indiana Counties (Local) Income Tax Withholding
Published: December 14, 2022
Effective: Pay Period 25, 2022
Summary
A new exemption equal to $3,000 for each adopted child has been added to the local income tax withholding formulas for Indiana.
No action on the part of the employee or the personnel office is necessary.
Tax Formula
State Abbreviation: |
IN |
State Tax Withholding State Code: |
18 |
Acceptable Exemption Form: |
WH-4 |
Acceptable Exemption Data: |
A-Z, 0/Number of Dependents |
Special Coding: |
Determine the Total Number of Exemptions field as follows: - Enter the number of exemptions claimed. (If less than 10, precede with a zero (0).) |
Additional Information: |
None |
Withholding Formula (Effective Pay Period 25, 2022)
- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Employees Health Benefits Plan payment(s) (includes dental and vision insurance program, and Flexible Spending Account - health care and dependent care deductions) from the amount computed in step 1.
- Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the annual wages.
- Determine the exemption allowance by applying the following guideline and subtract this amount from the result of step 4:
Exemption Allowance = $1,000 x Number of Exemptions1
1 Number of exemptions claimed for self, spouse, over age 65, blindness, and dependents - Determine the additional allowance/exemptions by applying the following guidelines and subtract each amount from the result of step 5 to compute the taxable income:
- Additional Allowance = $1,500 x Number of Additional Exemptions2
2 Number of additional exemptions claimed for certain qualifying dependents - Additional Exemptions = $1,500 x (2 x Number of Qualifying Adopted Children3)
3 Number of additional exemptions claimed for qualifying adopted children
- Additional Allowance = $1,500 x Number of Additional Exemptions2
- Apply the taxable income, computed in steps 5, 6a, and/or 6b, to the guideline in the table below to determine the annual Indiana county income tax withholding:
Compute the County Income Tax Withholding For
Tax Rate Percentage
State/County Code
Allen
1.48
18/003
Clay
2.35
18/021
Grant
2.55
18/053
Greene3
1.95
18/055
Marion
2.02
18/097
Martin
2.50
18/101
Miami
2.54
18/103
Tippecanoe
1.28
18/157
Vanderburgh
1.20
18/163
3 Voluntary county tax status
- Divide the annual Indiana county income tax withholding calculated in step 7 by the number of pay dates in the tax year to obtain the biweekly Indiana county income tax withholding.
Resources
To view the updated tax formula, go to the
page from the drop-down menu on the National Finance Center (NFC) Home page. Select the tab and select from the menu to launch the tax map. Select the desired State from the map provided for the formula.Inquiries
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at ServiceNow Portal for Federated Users and at ServiceNow Portal for Non-Federated Users.
or via the customer service portal at