State Sen. Brian Buchanan: Cutting Taxes and Addressing Affordability for Hoosiers


Indiana has one of the lowest costs of living in the country, but Hoosiers aren't always feeling that reality right now. That's why Senate Republicans have enacted many new laws to cut taxes and address affordability for Hoosiers.

Tax Cuts

In the 2026 session, I supported a new law to save Hoosiers $237 million in taxes on tips, overtime pay and loan interest on American-made vehicles. This law pairs Indiana's tax code to the federal code, meaning Hoosiers will have the same tax benefits at the state level as they do at the federal level for wages earned in 2026 regarding no tax on tips, no tax on overtime, and no tax on loan interest for American-made vehicles.

I also supported a plan to cut Indiana's income tax to one of the lowest rates in the country. This 2023 law lowers the income tax rate every year until 2027, when the rate will reach 2.9% and be among the lowest rates in the country. This cut is estimated to save Hoosiers $2 billion in income taxes over the first five years.

In the 2025 session, I supported a new law to save Hoosier homeowners $1.3 billion in property taxes. This legislation also included targeted relief for seniors, farmers and small-business owners. Beginning with 2027 bills, the business personal property tax will be eliminated for all businesses with equipment under $2 million.

In 2022, I helped pass a law to eliminate the state's utility receipts tax, resulting in $220 million in savings for Hoosiers on their utility bills, and this year, I voted for House Enrolled Act 1002, which will ensure utilities prioritize more affordable, reliable power to Hoosiers.

These are just some of the more than 20 tax cuts Senate Republicans have supported in the past 10 years. You can read more about these cuts here.

Affordability Issues

For many Hoosiers, the cost of health care is too high and rising. For years, Senate Republicans have championed efforts to lower the cost of health care by increasing transparency and patient choice. Some of those efforts I’ve supported include the following:

Access to affordable child care is another issue that continues to strain Hoosier families. I’ve supported laws to reduce regulations and make it easier for more child care centers to open while still maintaining high standards of safety and care. To encourage more employers to help fund child care for their employees, I also supported the creation of a new employer-based child care tax credit.

I encourage you to contact me with any questions or comments you may have by filling out a "Contact Me" form online or by phone at 800-382-9467.