The Vigo County income tax rate is 2.0 percent, applied to your Indiana adjusted gross income and reported under county code 84 on your Indiana return.1Indiana Department of Revenue. 2025 Indiana County Income Tax Rates and County Codes Combined with Indiana’s 2.95 percent state individual income tax for 2026, a Vigo County resident faces a 4.95 percent total Indiana income tax rate before credits and exemptions.2Indiana Department of Revenue. Rates, Fees and Penalties Whether the county piece applies to you turns on where you lived or worked on January 1.
The tax runs on Indiana adjusted gross income, not federal AGI, so Indiana-specific add-backs and deductions change the base the 2.0 percent hits.3Indiana Department of Revenue. Income Tax Information Bulletin 32 – General Information on Local Income Taxes The Indiana Department of Revenue collects it alongside the state tax.4Indiana Department of Revenue. County Tax Rates: Businesses
Who Owes the Vigo County Rate
Indiana Residents
Your county of residence on January 1 locks in your county tax rate for the whole year, even if you move.5Indiana General Assembly. Indiana Code 6-3.6-8-3 – County Residency and Place of Business or Employment; Determination Live in Vigo County on January 1, and you owe 2.0 percent on your entire year’s Indiana adjusted gross income. Move to another Indiana county in March, and Vigo’s rate still applies through December 31.3Indiana Department of Revenue. Income Tax Information Bulletin 32 – General Information on Local Income Taxes If you lived in a different Indiana county on January 1, that county’s rate governs instead, regardless of where you work.
Out-of-State Workers
Nonresidents whose principal place of employment is in Vigo County owe the 2.0 percent rate on the income they earn there.3Indiana Department of Revenue. Income Tax Information Bulletin 32 – General Information on Local Income Taxes One important exception: Indiana has reciprocity agreements with Kentucky, Michigan, Ohio, Pennsylvania, and Wisconsin, and residents of those states who work in Vigo County are exempt from Indiana’s state adjusted gross income tax on wages, though county-level obligations can still apply depending on the arrangement.6Indiana Department of Revenue. Income Tax Information Bulletin 33 – Withholding Requirements for Nonresident Employees
If you live in another state and pay local income tax there on the same income, Indiana allows a credit against the Vigo County tax for those local taxes. Property taxes and other states’ income taxes don’t count. Claim the credit using Schedule 6 and Schedule G.7Indiana Department of Revenue. Credits
Exemptions That Lower the Base
Because the 2.0 percent is calculated after exemptions come off your Indiana adjusted gross income, the standard Indiana exemptions all reduce your county tax too.
Every taxpayer claims a $1,000 personal exemption, and a married couple filing jointly claims a second $1,000 for the spouse.8Indiana Department of Revenue. Income Tax Information Bulletin 117 Each qualifying dependent adds $1,500, a first-year dependent adds another $1,500, and an adopted child qualifies for a $3,000 exemption.9Indiana Department of Revenue. Departmental Notice 1 – How to Compute Withholding for State and County Income Tax
Taxpayers 65 or older claim an additional $1,000 exemption. If your federal adjusted gross income is under $40,000 ($20,000 for married filing separately), a further $500 exemption applies. Both amounts are per qualifying individual, so a joint-filing couple who are both 65 or older can double up. Seniors may also qualify for the separate Unified Tax Credit for the Elderly.10Indiana Department of Revenue. Seniors
Military Pay and the Withholding Gap
Active-duty service members who are Indiana residents owe the Vigo County LIT if they resided in the county on January 1. A resident service member who maintains a household outside Indiana is not subject to the county tax.11Indiana Department of Revenue. Income Tax Information Bulletin 27 – Indiana Adjusted Gross Income Tax Applicable to Military Personnel The military typically withholds Indiana state income tax but not local income tax, so a Vigo County service member may need to make estimated payments or pay the county balance at filing.
Estimated Payments
If your combined state and county tax liability exceeds withholding by $1,000 or more, Indiana expects quarterly estimated payments.12Indiana Department of Revenue. Estimated Payments This most often catches self-employed workers, freelancers, retirees with investment income, and service members whose county tax isn’t withheld. Missing or underpaying an installment triggers a 10 percent penalty on the shortfall for that period. You avoid the penalty if withholding plus estimated payments equal at least 90 percent of the current year’s tax, 100 percent of last year’s, or 110 percent of last year’s when federal AGI exceeds $150,000 ($75,000 married filing separately).
Filing and Deadlines
Confirm your county on Form WH-4, the Employee’s Withholding Exemption and County Status Certificate, so your employer withholds at the right rate.13Indiana Department of Revenue. Withholding Tax Forms Update it when you move. If you lived in Vigo County on January 1 and your employer has a different county on file, your withholding will be off all year.
Full-year residents file Form IT-40; part-year residents and nonresidents use Form IT-40PNR.14Indiana Department of Revenue. Indiana IT-40PNR Part-Year and Full-Year Nonresident Individual Income Tax Booklet Enter county code 84 and the 2.0 percent rate. Electronic filing and payment go through the DOR’s INTIME portal at intime.dor.in.gov, and paper returns are still accepted by mail.
The 2025 return and any balance due are due April 15, 2026. Late payment brings a penalty of 10 percent of the unpaid amount or $5, whichever is greater.15Indiana Department of Revenue. Fines, Fees and Penalties Interest accrues at 7 percent annually on any balance outstanding after the deadline.16Indiana Department of Revenue. Interest Rates for Calendar Year 2026