State tax cut for overtime, tips clears Senate; House sends other tax breaks to Braun
The Senate plan is expected to reduce state tax revenue by about $250 million and apply to 2026 income on tax returns filed in 2027.
Income taxes
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Bill proposing continued income tax rate cuts passed by committee
Hoosiers would see the percentage of their income the state takes for taxes continue to decrease under a bill progressing through the Indiana House.
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IRS throws chill into collectives paying college athletes while claiming not-for-profit status
The rapidly expanding landscape of not-for-profit, donor-backed collectives paying college athletes to promote charities has been hit with a potentially seismic disruption.
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Bill making tech parks eligible for more tax revenue heads to governor
A bill that would allow Indiana tech parks to capture a larger share of tax revenue is poised to become law after the Senate voted unanimously Monday to advance the legislation to the governor’s office.
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Should the state ax its individual income tax?
A powerful Senate Republican plans to introduce legislation next year to create a commission to consider changes to Indiana’s tax structure, including phasing out the state income tax.
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Articles
Municipal groups welcome newly filed bills to adjust local income tax structures
After months of asking for relief from the new tax structure imposed by the General Assembly in 2025, local units of government could see some relief under proposed changes to the state’s income tax code this session.
Municipal advocacy group requests tax fixes ahead of 2026 session
Diminished budgets, staffing reductions and postponed projects were the focus Wednesday as more than a dozen Hoosier mayors and town managers gathered to discuss the effects of Indiana’s new property tax system.
As new tax bill takes effect, local officials fret
Municipal government leaders across Indiana are going pale in the face while they review budget forecasts for the next few years as a sweeping property tax relief law takes effect.
Ex-congressman Billy Long confirmed as commissioner of IRS, an agency he once sought to abolish
Long will take over an IRS undergoing massive change, including layoffs and voluntary retirements of tens of thousands of workers.
IRS lost 31% of tax auditors in DOGE downsizing, watchdog finds
The IRS downsizing is due to a series of moves, spurred by Elon Musk’s Department of Government Efficiency, to cut the agency’s workforce.
Braun chides Beckwith for Three-Fifths Compromise comments, defends tax plan
Indiana cabinet members, lawmakers, lobbyists and more gathered Wednesday to celebrate Gov. Mike Braun’s first 100 days in office—but the man of the hour had tough words for his second-in-command.
State property tax plan might prompt local income tax hikes
Legislators determined to cut property tax bills for homeowners and businesses are set to leave local officials with difficult choices about whether to cut services or raise income taxes to make up for substantial funding gaps.
Braun OKs future state income tax cuts contingent on unlikely revenue growth
In order for the decreases to kick in, the legislation stipulates that the state’s revenue must hit certain growth benchmarks.
Trump administration to end IRS Direct File program for free tax filing, sources say
The program developed during Joe Biden’s presidency was credited by some with making tax filing easy, fast and economical, while others said it was frequently difficult to use.
Latest IRS chief to quit over deal to share data with immigration authorities
Acting IRS commissioner Melanie Krause—the tax agency’s third leader since President Donald Trump’s inauguration—will participate in the deferred resignation program the Trump administration offered to agency employees in recent days, sources said.
Senate takes a crucial step toward extending Trump tax cuts
The framework now moves to the House, which must pass it before lawmakers can start working on the bill itself.
Trump administration plans 25% staff cut at IRS taxpayer help office
The Taxpayer Advocate Service is part of the IRS but operates independently as its internal watchdog. It identifies major problems facing taxpayers, recommends fixes and assists people with individual problems.
State revenue collections continue to exceed projections
The Indiana State Budget Agency noted that higher-than-expected collections from income tax revenue outweighed lower-than-expected collections from sales tax and interest revenue.
Senate advances new $500 child tax credit
Bill author Sen. Greg Walker, R-Columbus, said the tax credit is one of many measures lawmakers should consider to make it easier for Hoosiers to afford to have children.
State posts second straight month of better-than-expected revenue
Income taxes drove the overall increase, with collections up 4.7% more than the agency anticipated.
Five takeaways from the just-released House Republican budget plan
The two-year spending plan funds many of Gov. Mike Braun’s agenda items—including additional funding for private school vouchers—but doesn’t include several state tax cuts the new governor proposed.
Kentucky governor, a Democrat, signs GOP-backed personal income tax cut
As Indiana politicians debate the best way for the state to relieve a growing property tax problem, their neighbors just to the south have made a decisive move about taxation.
Bill seeks more income tax revenue for Hamilton County cities, especially Fishers
A bill aimed at adjusting the way income taxes are distributed in Hamilton County seeks to address a disparity in revenue received by Fishers—a situation that has lingered for years.
Lawmakers ready tax legislation ahead of session prime for reform
Policymakers have proposed at least 12 bills seeking to create or adjust property tax credits or deductions and institute freezes.