2024 Rank: 10
2023 Rank: 27
Indiana became the highest-scoring state with an individual income tax over the past year, as the state passed gold-standard 30-day filing and withholding thresholds. The state is also notable for having extended a unilateral offer of reciprocity, an offer which has borne fruit in the form of agreements that cover 61.2 percent of incoming commuters. A similar agreement with Illinois is the last major thing Indiana could do to improve its score, though this is made difficult by the fact that twice as many Hoosiers commute to Illinois as Illinoisans to Indiana.
Category | Current Law | Score | Total Possible |
Filing threshold | More than 30 days | 10 | 10 |
Reciprocity agreements | Kentucky, Michigan, Ohio, Pennsylvania, Wisconsin | 6.12 | 10 |
Convenience of the employer rule | None | 0 | 0 |
Individual Income Tax Code | 2.88 | 5 | |
Withholding threshold | More than 30 days | 10 | 10 |
Total Score | 29.00 | 35 |
Ways to Improve:
- Seek reciprocity agreements with:
- Illinois: 28.46 percent of incoming commuters
For further ideas for how your state could improve, see our Example Remote Work Provision.
Read the report here, or click below to read how your state performs on the remote worker index.
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