INDIANA – Hoosier military members are set to receive much-needed tax relief thanks to a new law co-authored by State Reps. Chris May (R-Bedford) and Stephen Bartels (R-Eckerty).
Currently, active-duty service members are eligible for a $5,000 deduction from the state individual income tax. Under the new law, active-duty military members will receive a complete income tax exemption beginning in January regardless of their deployment status. National Guard and reserve members already receive a $5,000 deduction, and a full income tax exemption when mobilized or on duty.
“Military service members bring skills and a work ethic that Hoosier businesses need,” May said. “With major employers like Naval Surface Warfare Center, Crane Division in our part of the state, we should do everything we can to encourage them to come to Indiana when their service is complete, and help boost our workforce that’s prepared for today’s technical jobs.”
According to Bartels, a military veteran and member of the House Veterans Affairs and Public Safety Committee, other states, including Michigan and Kentucky, offer a full income tax exemption to all service members.
“This is the first step to ending the state income tax for all Hoosiers. It makes sense to exempt all active-duty military members from the state income tax, regardless of whether they’re deployed or not,” Bartels said. “Their service in defense of our country is essential, and they deserve to keep more of their hard-earned money. I want service members to know that Indiana is a great place to live and work, and we welcome them and their families.”
To learn more about new state laws, visit in.gov/gov/newsroom/2023-bill-watch.
