STATEHOUSE (June 30, 2023) – Hoosier military members are set to receive much-needed tax relief thanks to a new law supported by State Reps. Matt Hostettler (R-Patoka) and Cindy Ledbetter (R-Newburgh).
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. National Guard and reserve members already receive a $5,000 deduction, and a full income tax exemption when mobilized or on duty.
“Helping military members keep more of the money they earn is one way Indiana can show that their service is appreciated,” Hostettler said.
According to Ledbetter, who co-authored the law, other states, including Michigan and Kentucky, offer a full income tax exemption to all service members.
"The men and women in the armed forces not only work to protect our freedoms, but also possess a variety of talents and skills our employers need," Ledbetter said. "This tax cut is a small way of thanking them and making sure Indiana is a welcoming state for service members."
To learn more about new state laws, visit in.gov/gov/newsroom/2023-bill-watch.
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State Rep. Matt Hostettler (R-Patoka) represents House District 64,
which includes portions of Gibson, Knox and Vanderburgh counties.
Click here to download a high-resolution photo.
State Rep. Cindy Ledbetter (R-Newburgh) represents House District 75,
which includes portions of Gibson, Pike and Warrick counties.
Click here to download a high-resolution photo.
