STATEHOUSE (June 14, 2023) – Hoosier military members are set to receive much-needed tax relief thanks to a new law supported by State Rep. J.D. Prescott (R-Union City).
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. Prescott said National Guard and reserve members already receive a $5,000 deduction, and a full income tax exemption when mobilized or on duty.
"Hoosiers with experience in the military have much-needed skills and talents that could go a long way when they enter the private sector," Prescott said. "This military pay exemption supports active-duty military and hopefully encourages them to live and work in Indiana when they're done serving."
According to Prescott, other states, including Michigan and Kentucky, offer a full income tax exemption to all service members.
To follow legislation signed into law by the governor, visit in.gov/gov/newsroom/2023-bill-watch.
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State Rep. J.D. Prescott (R-Union City) represents House District 33,
which includes all of Blackford and Randolph counties, and portions of Delaware, Henry and Jay counties.
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