Johnson County’s individual income tax rate will be 0.2% higher starting Saturday.
The individual income tax rate will increase to 1.4% starting Oct. 1. The rate was previously 1.2%, according to an Indiana Department of Revenue news release.
This tax rate affects businesses with employees who live or work in Johnson County and have income tax withholdings.
For people listed as Indiana residents on Jan. 1, 2022, county tax rates for individuals are based on the employee’s Indiana county of residence on that date. For individuals who were not listed as Indiana residents on Jan. 1, 2022, county tax rates are based on the individual’s county of principal business or employment on Jan. 1, the news release says.
The income tax rate increase was approved by the Johnson County Council in August. The new tax is an Economic Development Income Tax, or an EDIT, that will be used to fund a deficit in road funding.
