40 Years of Local Income Taxes in Indiana

Services: Data analysis, Analytical studies

Research Areas: Intergovernmental Relations, Tax & Finance

The Indiana Fiscal Policy Institute and PPI partnered on the report “40 Years of Local Income Taxes in Indiana: Trends, Challenges, and Implications for the Future.” The year 2013 marked the 40th anniversary of local option income taxes (referred to as LOIT) in Indiana, which are utilized in 91 of 92 counties. There are seven LOIT rates available to counties and while most were adopted to reduce property tax burdens, local units have gradually expanded the use of LOIT dollars to include general operating funds, economic development projects, and other investments.

Interest in this topic has spanned across the nation as this report was reprinted in the December 2012 edition of State Tax Notes, which is published by Tax Analysts.

The full report includes a breakdown of the seven LOITs and which counties utilize these taxes the most.

For more information about the Indiana Fiscal Policy Institute visit www.indianafiscal.org.

Matthew Nagle
  • Matthew Nagle
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