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Read. Follow. Verify.Indiana House Bill 1143 Requires Workers to Pay Local Income Tax Where They Work and Live
Last action · January 5, 2026: First reading: referred to Committee on Ways and MeansSponsor: Michael Karickhoff
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What This Bill Proposed
House Bill 1143 requires individuals who reside in a county with a local income tax and work in a different county to pay a local income tax in their workplace county as well. The workplace county tax rate is set at twenty-five percent of the sum of the local income tax rates imposed on resident taxpayers in that county. Taxpayers receive a credit against the tax imposed in their workplace county equal to the amount of tax paid in their county of residence, effective for taxable years beginning after December 31, 2026.
Commuters who live in one Indiana county and work in another face a new tax obligation in their workplace county, offset by a credit against the tax owed in their home county.
- Local option income taxes in Indiana are governed under IC 6-3.6, allowing counties to impose income taxes on residents and certain workers. context
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
Cross-county commuters
Individuals who live and work in different Indiana counties are subject to local income tax obligations in both jurisdictions, accompanied by a tax credit.
Local governments
Counties where taxpayers work gain authority to impose a local income tax on nonresident workers at a rate equal to 25 percent of resident rates.
Key Facts
You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.
Frequently Asked Questions
Who is required to pay a local income tax in a county where they do not live?
How is the local income tax rate calculated for a taxpayer who works in a county different from where they reside?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · in House committee.
Procedural history
2 actions- Jan 5, 2026HouseIntroducedFirst reading: referred to Committee on Ways and Means
- Jan 5, 2026HouseAuthored by Representative Karickhoff
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Expansion of Local Income Tax Jurisdiction
The bill shifts from a purely residence-based local income tax structure to one that captures workplace county revenue from nonresident commuters.
Connected Entities
Sources
iga.in.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 60)
- Controversy50Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz25Current news / social attention level
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