CT-40: Form CT-40 County Tax Schedule for Full-Year Indiana Residents (2025)
Indiana · Indiana DOR · Used for tax years 2025
Form CT-40 is a county tax schedule used by full-year Indiana residents to calculate and report local income taxes. The form applies specific county tax rates to the income reported on the individual state return based on where the taxpayer lived on January 1. It also provides a
Who files this form
Schedule CT-40 is the county tax schedule for full-year Indiana residents using Form IT-40 for tax year 2025.
If you and your spouse lived in the same county on January 1, 2025, the form says to enter the entire amount from IT-40, line 7, in Column A and leave Column B blank.
What you'll need
Have these forms and details ready:
- Your 2025 Form IT-40, including the amount on line 7 and the name or names shown on the return.
- Your Social Security number and principal residence address, plus your spouse’s principal residence address if applicable.
- The county where you lived on January 1, 2025, and its rate from the county tax rate chart on the back of CT-40.
- If you are a Perry County resident who worked in Breckinridge, Hancock or Meade County, Kentucky, the amount of income taxed by the Kentucky localities covered by line 5.
Common mistakes
- Completing both columns when you and your spouse lived in the same county. The line 1 note says to put the entire IT-40, line 7 amount on line 1A and not complete Column B.
- Entering a negative result on line 3. The form says to leave it blank if the result is less than zero.
- Skipping the Perry County adjustment. Perry County residents who worked in Breckinridge, Hancock or Meade County, Kentucky, must complete lines 5 and 6.
- Overlooking changed rates. The county rate chart marks rates that changed from the previous year with an asterisk.
Questions people ask
Which county’s tax rate do I use?
Use the rate from the chart for the county where you lived on January 1, 2025.
Where does the starting income amount come from?
Line 1 asks for the amount from Form IT-40, line 7. If you and your spouse lived in the same county on January 1, put the entire amount on line 1A and leave Column B blank.
What special calculation applies to certain Perry County residents?
If you live in Perry County and worked in Breckinridge, Hancock or Meade County, Kentucky, complete lines 5 and 6. Line 5 asks for income taxed by certain Kentucky localities. Line 6 multiplies that amount by Perry County’s rate, which is .014 on the 2025 chart. The form refers to instructions for details, but those instructions are not included in the supplied text.
Where do I report the final county tax amount?
Line 7 is line 4 minus line 6. Enter the line 7 amount on Form IT-40, line 9. If the Perry County adjustment does not apply, the form directs you to carry the line 4 total to line 7.