STATEHOUSE (Feb. 9, 2023) – The Indiana House of Representatives recently advanced legislation co-authored by State Reps. Chris Judy (R-Fort Wayne) and Bob Morris (R-Fort Wayne) that would phase-in a complete state income-tax exemption for military pay earned by active duty members.
Judy said unlike active duty National Guard and reserve members who are exempt from the individual income tax, other active duty members can qualify for a maximum $5,000 exemption. House Bill 1034, which now moves to the Indiana Senate for consideration, would start with a 25% exemption on military pay in 2024, 50% exemption in 2025, 75% exemption in 2026, and end with a full exemption by 2027.
"Military members make tremendous sacrifices to protect our great nation," said Judy, an Indiana National Guard and Iraq War veteran. "Exempting their income taxes would be one more way to show them our support, and serve as a reminder that Indiana is a welcoming state for our men and women in uniform."
Morris said Indiana is already facing a skilled labor shortage, with more than 85,000 open job opportunities. He said veterans, with the necessary leadership and technical skills, could help fill these positions and help drive the workforce.
"The military community possesses so many skills and qualities that employers need," Morris said. "We should do everything we can to bring more active duty and veterans to Indiana who can contribute to our communities and businesses."
Neighboring states including Michigan and Kentucky offer a complete military income tax exemption for residents.
For more information and to follow legislative proceedings, visit iga.in.gov.
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State Rep. Chris Judy (R-Fort Wayne) represents House District 83,
which includes portions of Allen and Whitley counties.
Click here to download a high-resolution photo.
State Rep. Bob Morris (R-Fort Wayne) represents House District 84,
which includes a portion of Allen County.
Click here to download a high-resolution photo.
