Indiana House Republicans focused again this year on lowering taxes for hardworking Hoosiers. The legislature has cut taxes for Hoosiers every year over the last decade, saving taxpayers more than $20 billion since 2013.
This session, state legislators passed a new law to align with President Trump’s One Big Beautiful Bill, allowing Hoosiers to deduct qualifying tips and overtime pay from their state taxable income for 2026.
Another new law provides more robust property tax relief for Indiana’s veterans, including a 100 percent property tax deduction on assessed value for totally disabled veterans and new and expanded credits for partially disabled and war-time veterans. These changes will provide an estimated $46 million in additional tax relief for disabled veterans starting with taxes payable in 2027.
Additionally, most homeowners can expect to pay less in property taxes this year. A law enacted during the 2025 legislative session will save Hoosier homeowners over $1.3 billion in property taxes over the next three years through a combination of credits and reforms. Homeowners will begin to see these savings on their property tax bills this spring.
The current biennial state budget also accounts for the two remaining individual income tax cuts set for this year and next that will save taxpayers over $200 million annually.
House Republicans will continue to prioritize tax cuts and ensuring Hoosiers can keep more of their hard-earned money.
