Indiana local and state tax

Forum|Forum|1 year ago
January 23, 2025
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I live in Kentucky but work in Indiana. Local taxes were taken out in Indiana but not state tax. So the amount I have to pay in to Indiana is the exact same amount that the local tax is that was withheld. Does this sound correct?

Not A Product Question

RobertB4444

Indiana employees who live in another state have to pay local tax at a rate of 0.5625%. If your employer knows you're a non-resident they should be withholding taxes from your paycheck at exactly that rate. If all of your Indiana income is on your W2 then that is exactly what you should owe. If you owe exactly what was withheld then your employer is doing a perfect job for you.

Here's the Indiana local tax rules.

@nickolarae

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