TAXES 20-03, Indiana Counties (Local) Income Tax Withholding
Published: January 30, 2020
Effective: Pay Period 26, 2019
The income tax withholding rate for Tippecanoe, Indiana, has increased from 1.10 percent to 1.28 percent.
No action on the part of the employee or the personnel office is necessary.
State Tax Withholding State Code:
Acceptable Exemption Form:
Acceptable Exemption Data:
A-Z, 0/Number of Dependents
Determine the Total Number of Exemptions field as follows:
- Enter the number of exemptions claimed. (If less than 10, precede with a 0 (zero).)
Withholding Formula (Effective Pay Period 26, 2019)
- Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account - health care and dependent care deductions) from the gross biweekly wages.
- Subtract the nontaxable biweekly Thrift Savings Plan (TSP) contribution from the gross biweekly wages to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the annual wages.
- Determine the exemption allowance by applying the following guideline and subtract this amount from the result of step 3:
Exemption Allowance = $1,000 x Number of Exemptions1
1 Number of exemptions claimed for self, spouse, over age 65, blindness, and dependents
- Determine the exemption allowance by applying the following guideline and subtract this amount from the result of step 4 to compute the taxable income:
Additional Allowance = $1,500 x Number of Additional Exemptions2
2 Number of additional exemptions claimed for certain qualifying dependents
- Apply the taxable income to the guideline in the table below to determine the annual Indiana county income tax withholding:
Compute the County Income Tax Withholding For
Tax Rate Percentage
3 Voluntary county tax status
- Divide the annual Indiana county income tax withholding calculated in step 6 by the number of pay dates in the tax year to obtain the biweekly Indiana county income tax withholding.
To view the updated tax formula, go to thepage from the drop-down menu on the National Finance Center (NFC) Home page. Select the tab and select from the menu to launch the tax map. Select the desired State from the map provided for the formula.
Previous Tax Bulletin
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center ator via the customer service portal.