Back in 2014, when Monroe County was considering a small increase in the Juvenile County Option Income Tax, I ran a comparison of Monroe County with the other 91 counties on overall income tax rates (Income Tax Rates in Indiana Counties — How Does Monroe County Compare?). Now that we are starting to hear some calls from public safety agencies for a public safety local option income tax (which would be passed by the Bloomington City Council, not the County Council, incidentally), I thought I’d re-run the comparisons using 2016 local option income tax rates.
Here is a table showing the total combined local option income tax rates for 2016 for each county in Indiana, along with each county’s percentile.
Monroe is at the 24th percentile rank, which basically means that Monroe County’s income tax rates are in (near the top of) the bottom quarter. Put differently, 76% of Indiana counties have a higher income tax rate than Monroe County.
So how do we compare to our neighbor counties?
Monroe County currently has the lowest income tax rates of any of its neighbor counties.
Finally, how does Monroe County compare with its “peer” counties?
Obviously the definition of “peer” county is somewhat subjective, but these counties are ones that Monroe County is typically compared against, in terms of population, urbanization, demographics, etc. In this comparison, we have the second-lowest income tax rates, second only to Vanderburgh County.