CT-40PNR: Form CT-40PNR County Tax Schedule—Part-Year Nonresidents (2025)
Indiana · Indiana DOR · Used for tax years 2025
Schedule CT-40PNR is used to calculate county tax for individuals who were part-year residents or full-year nonresidents of Indiana. The form determines tax liability based on the taxpayer's county of residence or principal place of employment as of January 1, 2025. It accounts f
Who files this form
Schedule CT-40PNR is the county tax schedule for part-year and full-year Indiana nonresidents using Form IT-40PNR for tax year 2025.
- Complete Section 1 if you were a resident of an Indiana county on January 1, 2025.
- Complete Section 2 if you were not a resident of an Indiana county on January 1, 2025, but worked in Indiana on that date.
- If you are married filing jointly, you may need both sections if you and your spouse fall into different groups.
What you'll need
Have these forms and details available, depending on which section you complete:
- Form IT-40PNR: Section 1 starts with the amount from line 7.
- Schedule D: Section 2 uses some or all of the exemptions from line 9.
- Your name, Social Security number and principal residence address, plus your spouse’s name and principal residence address if applicable.
- The Indiana county where you lived or worked on January 1, 2025, and its rate from the schedule’s 2025 county tax rate chart.
- For Section 2, your principal employment income and allowable deductions.
- For the Perry County adjustment, the amount of income taxed by the specified Kentucky localities.
The form refers to separate instructions for allowable deductions, exemption allocation and certain special situations. Those instructions were not provided.
Common mistakes
- Splitting income when both spouses lived in the same county: The Section 1 note says to enter the entire amount on line 1A only if you and your spouse lived in the same county on January 1, 2025.
- Entering negative amounts where the form says to leave a blank: Leave Section 1, line 3 blank if the result is less than zero. The same rule applies to Section 2, line 5.
- Skipping the Perry County adjustment: Perry County residents who worked in the Kentucky counties of Breckinridge, Hancock or Meade must complete Section 1, lines 5 and 6.
- Leaving out one section’s tax: If you have amounts in both Section 1, line 7 and Section 2, line 8, combine them before entering the total on Form IT-40PNR, line 9.
- Overlooking rate changes: The 2025 rate chart marks rates that changed from last year with an asterisk.
Questions people ask
Which county’s tax rate do I use?
For Section 1, use the rate for the county where you lived on January 1, 2025. For Section 2, use the rate for the county where you worked on January 1, 2025. Use the chart on the schedule.
Which column is for my spouse?
Column A is yours, and Column B is your spouse’s. Section 1 has a special note: if both spouses lived in the same county on January 1, enter the entire starting amount on line 1A only.
Where does the county tax total go?
Carry Section 1, line 7 or Section 2, line 8 to Form IT-40PNR, line 9. If both sections have amounts, combine them and enter the total there.
What if I lived in a reciprocal state but worked in Indiana?
Section 1, line 1 directs you to consult the instructions for this situation. The provided form text does not explain the special calculation, and no instructions were supplied.