New Tax Cuts for Hoosiers in 2026

As we kick off a new year, Hoosiers can look forward to new tax cuts that took effect on Jan. 1. House Republicans continue to prioritize lowering taxes for hardworking Hoosiers.

Property Taxes

Senate Enrolled Act 1 lowers property taxes for Hoosier homeowners, with a majority of homeowners expected to pay less property taxes in 2026 than they did in 2025. In total, this new law provides more than $1.3 billion in tax relief.

Key provisions of SEA 1 include:

• All homestead property tax bills will include a 10% credit up to $300 with an additional credit for seniors;
• Property tax deductions will increase, and grow to two-thirds of a property's gross assessed value by 2031;
• Greater supplemental deductions for farmland and rental property owners; and
• A new Property Tax Transparency Portal to allow taxpayers to compare their current tax bill with proposed tax rate changes.

State Income Tax

Indiana's state income tax rate will be lowered from 3% to 2.95% beginning Jan. 1 and next year it will be lowered to 2.9%. This moves Indiana to one of the lowest income tax rates in the country.

Indiana's legislature has cut taxes for Hoosiers every year over the last decade, saving taxpayers more than $20 billion. To see the Indiana Tax Cut Timeline, click here.

Happy New Year Hoosiers!