Another tax increase that will effect Fort Wayne and Allen County residents
It looks like our Republican dominated City Council is going to pass a large tax increase that will effect all residents of Fort Wayne and all of Allen County.
Indiana has a State income tax that is paid statewide. Each county also has an income tax that must be paid. Allen County had a very reasonable rate of 1%. This rate was increased by a whopping 35% back on October 1st, 2013. Back on October 1st, 2013 that tax rate increased from 1% to 1.35%.
City Council is now proposing that the tax be increased from 1.35% to 1.5%. This tax increase would effect everyone living in Allen County not just residents of Fort Wayne. I expect this tax increase to pass and it will increase the Allen County income tax rate by 11.1%.
Anyone earning wages will see their take home pay decrease on October 1st, 2017 by roughly .15% if this tax is passed since their employer will be required to with-hold County Income taxes at a higher rate.
Mike Sylvester, CPA