IN DOR Departmental Notices

Indiana Tax Interest Rates Set for 2026

The Indiana Department of Revenue Commissioner has established the calendar year 2026 interest rate for tax underpayments and overpayments at 7%, pursuant to IC 6-8.1-10-1. This rate represents an increase from the 6% rate that applied in 2025. The rate is calculated as two percentage points above the average investment yield on state general fund money for fiscal year 2025.

How to Compute Indiana County Income Tax Withholding

The Indiana Department of Revenue issued Departmental Notice #1 providing updated county income tax withholding rates effective January 1, 2026. The notice includes deduction constant tables and instructions for employers to compute state and county income tax withholding from employee wages. An asterisk beside a county name indicates a rate change since the previous notice published October 1, 2025.

Gasoline Use Tax Rate Notice, April 2026

The Indiana Department of Revenue published the monthly gasoline use tax rate for April 2026. Based on the statewide average retail price of $2.4539 per gallon for the period February 16 to March 15, 2026, the department calculated a rate of $0.172 per gallon (7% of the average price rounded to the nearest tenth of a cent). Refiners, terminal operators, and qualified distributors required to collect gasoline use tax must charge this rate for the April 1-30, 2026 period.

Repeal of the Inheritance Tax, Estate Tax, and Generation Skipping Tax

The Indiana Department of Revenue issued Departmental Notice #44 (September 2023) to update prior guidance on the 2013 repeal of the Indiana inheritance tax, estate tax, and generation skipping tax. The notice replaces Notice #44 dated December 2019 and has been updated to remove outdated references. The document outlines refund procedures for inheritance and estate taxes paid for deaths occurring before and during 2013.

Tax Withholding Requirements for Riverboat Gaming Winnings, March 2026

The Indiana Department of Revenue has issued updated guidance on withholding Indiana individual income tax from riverboat gaming winnings, effective March 2026. The notice replaces Departmental Notice #16 (December 2025) and reflects new statutory requirements including a 2.95% withholding rate for 2026 and 2.90% for 2027 and later on slot machine and keno winnings of $2,000 or more. Licensed gaming facilities must remit withholdings monthly by the 24th via electronic fund transfer and file annual reconciliation reports by January 31 of the following year.