Indianapolis and Marion County
Marion County sets one of the higher county income tax rates, and food and drink sold there carries a county tax of its own.
- Employees who lived in Marion County on January 1 have county income tax withheld at 2.02% for the whole year, on top of the 2.95% state rate.
- Employees living outside Indiana whose principal place of work was in Marion County on January 1 pay the 2.02% county rate too; residents of Kentucky, Michigan, Ohio, Pennsylvania, and Wisconsin pay county tax but not state tax.
- Food and beverage sales in Marion County carry a 2% county food and beverage tax, and a food truck selling in another county remits that county’s rate for those sales.