Indiana can take tremendous pride in being one of the top states for a welcoming tax and business climate, and for maintaining fiscal responsibility while also funding essential services like education. The new state budget, passed during the recent legislative session, supports these priorities while also providing additional relief to taxpayers.
Years of responsible budget management allowed state lawmakers to pass legislation in 2022 to drop the individual income tax rate from 3.23% to 2.9% by 2029. The new state budget accelerates this timeline so that Hoosier taxpayers will have one of the lowest income tax rates in the country by 2027. This tax cut and other tax relief measures passed this year, Hoosiers can expect to save nearly $430 million over the next two years.
Property tax dollars are collected and spent locally, and help pay for schools, police and fire protection, and other local government services. To help counter the rise in local property tax bills, I supported legislation to provide about $100 million in property tax relief for homeowners beginning next year. Hoosiers can expect a temporary increase to the supplemental homestead tax deduction and additional limits on property tax levy growth.
This session, I also co-authored a law exempting active-duty military pay from the state income tax starting next year, regardless of deployment status. These service members provide a major boost to Indiana, especially in our area through the Naval Surface Warfare Center, Crane Division. Any incentive we can give them to make their home and start a career here remains a priority.
K-12 education continues to be the largest part of Indiana's budget, comprising nearly half of the state's spending. We continued to prioritize our students with strong investments and student funding will increase by 10% over the next two years. Additionally, lawmakers eliminated textbook and curricular fees paid by parents.
To help students who are not planning to attend college but who still want to be prepared for the workforce, I supported efforts to create more work-based learning opportunities in Hoosier high schools. Students will be able to use Career Scholarship Accounts to pay for training and associated expenses like transportation and uniforms. The State Board of Education is reviewing current high school diploma requirements so these types of experiences can count toward graduation. This is another way to ensure students are equipped to succeed after finishing school, no matter which path they choose.
If you have questions about this year's legislative session or need help navigating state government, please contact me anytime at h65@iga.in.gov or 317-232-9676. I also encourage constituents to subscribe to my e-newsletters at in.gov/h65 to learn more about the work I'm doing at the Statehouse and what's happening in our district.
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State Rep. Chris May (R-Bedford) represents House District 65,
which includes all of Lawrence County, and portions of Jackson, Orange and Washington counties.
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