STATEHOUSE (June 27, 2023) – Hoosier military members are set to receive much-needed tax relief thanks to a new law supported by local lawmakers.
Currently, active-duty service members are eligible for a $5,000 deduction from the state individual income tax. Under the new law recently signed by Gov. Eric Holcomb, 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.
“This new law gives back to the men and women in the armed forces who fight to protect our freedoms,” said State Rep. Wendy McNamara (R-Evansville), co-author of the new law. “They have already offered up so much for our country, so it’s important we try help them wherever we can.”
According to State Rep. Tim O’Brien (R-Evansville), other states, including Michigan and Kentucky, offer a full income tax exemption to all service members.
“This new law reaffirms Indiana as a state that welcomes active-duty military members with open arms,” O’Brien said. “This exemption supports these heroes and will hopefully encourage more of them to make Indiana their permanent home after their military career is over.”
“Helping military members keep more of the money they earn is one way Indiana can show that their service is appreciated,†said State Rep. Matt Hostettler (R-Patoka).
