The Hendricks County income tax rate is 1.7 percent for 2026, charged on top of Indiana’s 2.95 percent state adjusted gross income tax for a combined 4.65 percent of your Indiana adjusted gross income.1Indiana Department of Revenue. Departmental Notice #1 – How to Compute Withholding for State and County Income Tax You owe the Hendricks rate if the county was your primary home on January 1 of the tax year, and you report the amount on Schedule CT-40 attached to your regular Indiana return.
What the 1.7 Percent Applies To
The rate is applied to your Indiana adjusted gross income, which starts with your federal adjusted gross income and is modified by Indiana’s additions and subtractions.2Indiana General Assembly. Indiana Code 6-3-1-3.5 – Adjusted Gross Income Every Indiana county uses this same figure, so there is no separate county taxable income to calculate.3Indiana Department of Revenue. Income Tax Information Bulletin #32 – General Information on Local Income Taxes
Before the rate is applied, you subtract Indiana’s personal and dependent exemptions. These are statewide and are not specific to Hendricks County:
- $1,000 per personal exemption, with additional exemptions available if you or your spouse are 65 or older or blind
- $1,500 per qualifying dependent
- $3,000 per qualifying adopted child
A worked example: a single Hendricks County resident with no dependents and $55,000 in Indiana adjusted gross income subtracts the $1,000 personal exemption to reach $54,000. At 1.7 percent, the county tax is $918. Add the 2.95 percent state tax on the same base and the combined Indiana income tax comes to roughly $2,511 before credits.
Who Owes the Hendricks County Rate
Indiana fixes your county tax obligation on a single date: January 1 of the tax year. If your primary home is in Hendricks County that day, you owe the 1.7 percent rate for the entire year, even if you move elsewhere in February.3Indiana Department of Revenue. Income Tax Information Bulletin #32 – General Information on Local Income Taxes The rule works in reverse too. If you move into Hendricks County on January 2, you do not owe its county tax until the following tax year.
Out-of-state workers can also owe the Hendricks rate. If you live in another state and your principal place of business or employment is in Hendricks County on January 1, the Hendricks rate applies, but only when you do not reside in another Indiana county that imposes a local income tax.4Indiana General Assembly. Indiana Code 6-3.6-2-13-b – Local Taxpayer An Illinois resident commuting to a job in Plainfield would pay Hendricks County’s rate; an Indiana resident living in Marion County and working in Hendricks County pays Marion County’s rate instead.
Active-duty military members who were Indiana residents when they enlisted stay Indiana residents for tax purposes no matter where they are stationed. If Hendricks County was your home of record at enlistment, you continue to owe the Hendricks County rate on all your income.5Indiana Department of Revenue. Military Service Members Spouses of nonresident military members stationed in Indiana may qualify for a deduction on Indiana-source earned income by filing Schedule IN-2058SP, provided they share the same state of domicile as the service member and meet the other eligibility requirements.
How to File and Pay
Hendricks County tax is reported as part of your regular Indiana return. Full-year residents use Form IT-40, and the county portion goes on Schedule CT-40, which records your county of residence and the applicable rate.6Indiana Department of Revenue. IT-40 2025 Full-Year Resident Individual Income Tax Booklet Schedule CT-40 has to be included with your return. It is what tells the state to direct your local tax payment to Hendricks County rather than another county. The Hendricks County code is 32; using the wrong code is a common way to send your payment to the wrong county.
You can file electronically through INTIME, the Department of Revenue’s online portal, or mail paper forms to the department.7Indiana Department of Revenue. Indiana Department of Revenue – INTIME If you need more time, request an extension through INTIME or by mailing Form IT-9 before April 15. A federal extension automatically extends your Indiana deadline, pushing a 2025 return to November 16, 2026.8Indiana Department of Revenue. Extension of Time to File An extension to file is not an extension to pay. Interest starts accruing on any unpaid balance after April 15, and to avoid a penalty on top of that interest, you need to pay at least 90 percent of what you owe by the original due date and settle the rest by the extended deadline.
Estimated Payments if Nothing Is Withheld
If you are self-employed, have significant investment income, or otherwise receive income with no Indiana tax withheld, you likely owe quarterly estimated payments. The trigger: a combined state and county liability of $1,000 or more after subtracting withholding.9Indiana Department of Revenue. Income Tax Information Bulletin #3 Indiana follows the IRS quarterly schedule for 2026:10Indiana Department of Revenue. DOR: Estimated Payments
- April 15, 2026 for January through March income
- June 15, 2026 for April and May
- September 15, 2026 for June through August
- January 15, 2027 for September through December
Each payment should cover both the 2.95 percent state tax and the 1.7 percent Hendricks County tax on income that is not already subject to withholding.
What Late or Wrong Payments Cost
Indiana charges a late-payment penalty of 10 percent of the unpaid tax or $5, whichever is greater.11Indiana Department of Revenue. DOR: Fines, Fees and Penalties Interest accrues at 7 percent per year for calendar year 2026 on any outstanding balance.12Indiana Department of Revenue. Departmental Notice #3 Interest Rates for Calendar Year 2026 If you owed $900 in Hendricks County tax and paid none of it by the deadline, the penalty alone adds $90, and interest keeps running until the balance is paid. Both charges apply to the state and county portions of your liability, so the total is bigger than most people expect. Confirm county code 32 on Schedule CT-40 before you file; a wrong code sends the payment to another county and can leave Hendricks’s share unpaid.