Indiana Decreases Flat Tax Rate, Adds Nonresident Exemption

Indiana’s flat income tax rate decreases Jan. 1, 2024, along with other changes to the state income tax taking effect then, the state revenue department said Dec. 15.

The state’s income tax rate decreases to 3.05%, from 3.15%, for 2024, the department said in Departmental Notice No. 1. Under current state law, the tax rate decreases by 0.05 percentage points each year until it reaches 2.9% in 2027. The deduction constant tables included for state withholding did not change from the previous version of the notice effective Oct. 1, 2023.

Nonresidents can work up to 30 days in a ...