HB1143

Local option income taxes.

Introduced·1/5/26
Intr Text

Indiana HB1143 amends local income tax definitions and rates for taxpayers with business or employment ties to multiple counties.

Indiana HB1143 amends the state's tax code to clarify definitions and rates for local income taxes. It specifies that an individual who resides in one county but has their principal place of business or employment in another county must pay local income tax in both counties. The bill also sets the local income tax rate in the county where the taxpayer has their principal place of business or employment at 25% of the sum of the local income tax rates in the county where the taxpayer resides. The changes take effect January 1, 2027.

Included in complete analysis

  • Overview
  • Core Provisions
  • Implementation
  • Impact
  • Legal Framework
  • Critical Issues

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Where it stands

Current
Ways and Means Committee
Next
Committee decision

Sponsors

0
1
R
Democratic CaucusRepublican Caucus

History

Jan 5

House

Authored by Representative Karickhoff

Jan 5

House

First reading: referred to Committee on Ways and Means