IN HB1143

Individuals who reside in one Indiana county but work in a different county would be required to pay local income tax in both counties, with the employment county rate set at 25% of that county's local income tax rates

Taxpayers receive a credit against their residence county tax equal to the amount paid to the employment county, preventing double taxation

The employment county tax rate excludes special purpose rates imposed under IC 6-3.6-7

Effective dates are January 1, 2027 for initial provisions and January 1, 2028 for updated definitions that incorporate municipal income tax provisions

The new tax provisions apply to taxable years beginning after December 31, 2026, with certain sections expiring January 1, 2030