STATEHOUSE (June 13, 2023) – Hoosier military members are set to receive much-needed tax relief thanks to a new law co-authored by State Rep. Bob Heaton (R-Terre Haute).
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. Heaton said National Guard and reserve members already receive a $5,000 deduction, and a full income tax exemption when mobilized or on duty.
"Our military members and their families make tremendous sacrifices in the defense of our country," Heaton said. "This is just one way we can show our appreciation for their service and help them keep more of their hard-earned money."
According to Heaton, other states, including Michigan and Kentucky, offer a full income tax exemption to all service members.
"Military service members have skill sets and training that translate well to the private sector," Heaton said. "Encouraging more of them to make their home in Indiana could help bolster our state's workforce once they transition back to civilian life."
To follow legislation signed into law by the governor, visit in.gov/gov/newsroom/2023-bill-watch.
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State Rep. Bob Heaton (R-Terre Haute) represents House District 46,
which includes all of Owen County, and portions of Clay, Monroe and Vigo counties.
Click here to download a high-resolution photo.
