The Bartholomew County income tax rate is 1.75% of Indiana adjusted gross income, and it has held steady at that level.1Indiana Department of Revenue. How to Compute Withholding for State and County Income Tax Stacked on top of Indiana’s 2.95% flat state income tax for 2026, that puts the combined state-and-county burden on Bartholomew residents at 4.70%.2Indiana Department of Revenue. Rates, Fees and Penalties The county’s code on Indiana tax forms is 03.
Indiana’s state rate is scheduled to drop again to 2.90% in 2027. Because counties set their own local rates independently, Bartholomew’s 1.75% does not move with the state cut, so the combined rate will tick down only by the state portion.2Indiana Department of Revenue. Rates, Fees and Penalties
Who Actually Owes the Bartholomew Rate
Indiana locks in your county tax situation using a snapshot on January 1. Where you lived and where you worked on the first day of the tax year determine your county rate for all twelve months, even if you move in February or change jobs in June.3Indiana Department of Revenue. Income Tax Information Bulletin 32 – General Information on Local Income Taxes
That rule produces three groups who may owe Bartholomew County’s 1.75%:
- You lived in Bartholomew County on January 1. You owe the 1.75% on your full Indiana adjusted gross income, no matter where you work.3Indiana Department of Revenue. Income Tax Information Bulletin 32 – General Information on Local Income Taxes
- You lived outside Indiana (or in an Indiana county with no local income tax of its own) on January 1, and your principal place of work on that date was in Bartholomew County. You pay the Bartholomew rate.
- You lived in another Indiana county that has its own local income tax, but you commute into Bartholomew for work. You pay your home county’s rate, not Bartholomew’s.
The last group is where confusion is most common. Someone who lives in Brown County and drives to a job in Columbus does not pay Bartholomew County’s 1.75%; the work-county rate only applies when the person’s home county has no LIT at all.
How the Tax Gets Collected
For most people, the 1.75% is handled through payroll and never requires a separate payment. When you start a job, Indiana Form WH-4, the “Employee’s Withholding Exemption & County Status Certificate,” tells your employer your county of residence.4Indiana Department of Revenue. Withholding Tax Forms Your employer withholds 1.75% from each paycheck in addition to state tax and remits both to the Indiana Department of Revenue, which routes the local share back to the county.
If you move, submit an updated WH-4 right away. It won’t change your current-year bill because of the January 1 rule, but it keeps next year’s withholding accurate from the first paycheck. An out-of-date WH-4 is one of the most common reasons people owe a balance or get a smaller refund than expected.
If You Are Self-Employed or Have Untaxed Income
Freelancers, business owners, and people with significant investment income usually have no withholding to rely on, so Indiana expects quarterly estimated payments covering both state and county tax. These are required if your combined state and county liability, after any withholding, will reach $1,000 or more for the year.5Indiana Department of Revenue. Estimated Payments
Due dates for calendar-year filers are April 20, June 20, September 20, and December 20.6Indiana General Assembly. Indiana Code 6-3-4-4.1 – Estimated Payments Declaration To stay inside the safe harbor and avoid underpayment penalties, pay at least 90% of this year’s total tax or 100% of last year’s. If your federal adjusted gross income tops $150,000 ($75,000 if married filing separately), the second figure rises to 110%. Each installment you underpay carries its own 10% penalty on the shortfall, assessed separately per quarter.5Indiana Department of Revenue. Estimated Payments
Filing Your Return
Your Bartholomew County tax is finalized once a year on Indiana Form IT-40, the full-year resident individual income tax return.7Indiana Department of Revenue. Indiana 2025 IT-40 Full-Year Resident Individual Income Tax Booklet Enter county code 03 for Bartholomew, which tells the return to apply the 1.75% rate to your Indiana adjusted gross income.1Indiana Department of Revenue. How to Compute Withholding for State and County Income Tax The actual local calculation lives on Schedule CT-40, which is attached to the IT-40, totals your county tax, and nets it against withholding and estimated payments already made.
If you were a Bartholomew resident on January 1 but moved out partway through the year, you still file with code 03 and pay the full-year Bartholomew rate for that tax year.3Indiana Department of Revenue. Income Tax Information Bulletin 32 – General Information on Local Income Taxes The filing deadline is April 15. Returns can be submitted through Indiana’s INTIME system or on paper.
Penalties and Interest if You Fall Behind
Indiana applies the same penalty rules to county income tax that it applies to state income tax. File on time but don’t pay the full amount, and the penalty is 10% of the unpaid tax or $5, whichever is greater.8Indiana Department of Revenue. Fines, Fees and Penalties File a zero-balance return late and the penalty is $10 per day, capped at $250.
Interest runs on any unpaid balance at 7% for calendar year 2026.9Indiana Department of Revenue. Departmental Notice 3 – Interest Rates for Calendar Year 2026 That rate is reset each year. Between the 10% late-payment penalty and running interest, a small county tax balance can grow quickly if ignored.
The straightforward way to stay clear of all of this is to keep your WH-4 current, check a pay stub or two each year to confirm 1.75% is actually being withheld for Bartholomew County, and mark the four estimated-payment dates on a calendar if any of your income comes in without withholding.