STATEHOUSE (June 21, 2023) – Hoosier military members are set to receive much-needed tax relief thanks to a new law supported by local lawmakers.
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.
"Our military members and their families make tremendous sacrifices in the defense of our country," said State Rep. Bob Heaton (R-Terre Haute), co-author of the new law. "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 State Rep. Alan Morrison (R-Brazil), other states, including Michigan and Kentucky, offer a full income tax exemption to all service members.
"Military veterans have the skills and work ethic that many Hoosier employers seek," Morrison said. "We should do everything we can to encourage them to call Indiana home after their service is over."
"Our state offers many benefits to our active-duty military and veterans, and this tax relief is just one more reason they should choose to live and work here," said State Rep. Bruce Borders (R-Jasonville). "Moving forward, I'll continue to support efforts to welcome more service members here and retain those we have."
To learn more about new state laws, visit in.gov/gov/newsroom/2023-bill-watch.
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State Rep. Bruce Borders (R-Jasonville) represents House District 45,
which includes all of Greene and Sullivan counties, and portions of Daviess, Knox and Vigo counties.
Click here to download a high-resolution photo.
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.
State Rep. Alan Morrison (R-Brazil) represents House District 42,
which includes all of Parke and Vermillion counties, and portions of Clay, Fountain and Vigo counties.
Click here to download a high-resolution photo.
