Indiana legislation · 2026 Regular Session
Indiana HB1143: Local option income taxes.
Status: In committee, January 5, 2026
Provides that an individual who resides in a county with a local income tax and has a principal place of employment or business in a different county shall also pay a local income tax in the county where the individual maintains the principal place of employment. Provides that the local income tax rate in effect for a local taxpayer in the county where the local taxpayer maintains the local taxpayer's principal place of business or employment is one fourth of the sum of the local income tax rates imposed on the adjusted gross income of local taxpayers who reside in the county where the local taxpayer maintains the local taxpayer's principal place of business or employment. Provides that a local taxpayer is entitled to a credit against the tax imposed by a county in the county where the local taxpayer resides equal to the amount of the tax paid in the county where the local taxpayer has a principal place of business or employment.
What the bill says
A bill FOR AN ACT to amend the Indiana Code concerning taxation.
From the introduced text:
A BILL FOR AN ACT to amend the Indiana Code concerning taxation. SECTION 1. IC 6-3.6-2-13, AS AMENDED BY P.L.239-2017, SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2027]: Sec. 13. "Local taxpayer", as it relates to a particular county, means any of the following: (1) An individual who resides in that county on the date specified in IC 6-3.6-8-3. (2) An individual who: (A) maintains the taxpayer's principal place of business or employment in that county on the date specified in IC 6-3.6-8-3 and who does not reside on that same date in another county in Indiana in which a tax under this article is in effect; or (B) for purposes of section 19 of this chapter, maintains the taxpayer's principal place of business or employment in that county on the date specified in IC 6-3.6-8-3 and who resides on that same date in another county in Indiana in which a tax under this article is in effect. 2026 IN 1143--LS 6773/DI (3) An individual who: (A) has income apportioned to Indiana or (ii) a race team member under IC 6-3-2-3.2; for services rendered in the county; and (B) is not described in subdivision (1) or (2). SECTION 2. IC 6-3.6-2-13, AS AMENDED BY P.L.68-2025, SECTION 100, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, …
Sponsors
- Michael Karickhoff (R, HD-030) · primary sponsor
Latest actions
- : First reading: referred to Committee on Ways and Means
- : Authored by Representative Karickhoff
Subjects: TAXES; Adjusted Gross Income Taxes, TAXES; Credits, COUNTY GOVERNMENT, TAXES; Gross Income Taxes, BUSINESS ORGANIZATIONS AND ASSOCIATIONS; Generally, AGENCIES; Department of Revenue (DOR)
Common questions
- What is HB1143?
- HB1143 is a bill in the Indiana Legislature (2026 Regular Session): Local option income taxes.
- What does HB1143 do?
- In its own words: A bill FOR AN ACT to amend the Indiana Code concerning taxation.
- What is the status of HB1143?
- In committee as of January 5, 2026. Latest action: First reading: referred to Committee on Ways and Means (January 5, 2026).
- Who sponsored HB1143?
- Michael Karickhoff (R, HD-030).
- Where is the official record for HB1143?
- On the Indiana Legislature website: https://iga.in.gov/legislative/2026/bills/house/1143
Source: official Indiana record. Tracked by Delilah, AI for legislation across all 50 states and Congress.