Championing No Tax on Tips, No Tax on Overtime

Senate Republicans have worked diligently in recent years to keep hard-earned money in the pockets of Hoosier taxpayers. In fact, Republicans have cut taxes more than 30 times in the past 10 years, and Indiana ranks 10th overall in the nation for state tax competitiveness according to Tax Foundation.

This session, Senate Republicans continued to keep their promise of cutting taxes for Hoosiers by passing Senate Enrolled Act 243, which aligns Indiana's tax code to federal tax code with regard to no tax on tips, no tax on overtime and no tax on loan interest for American-made vehicles passed in the Working Families Tax Cut Act, also known as the One Big Beautiful Bill. This ensures those eligible for those federal tax cuts also benefit from the same tax cuts at the state level in tax year 2026.

SEA 243 expands on the work Republicans did in 2025 with Senate Enrolled Act 1, which provides historic property tax relief, saving Hoosiers $1.3 billion over the next three years. It also expands on a 2022 law which eliminated the state's utility receipts tax, resulting in $220 million in savings on utility bills.

Senate Republicans have also cut income tax cuts for members of the armed forces and National Guard, phased out income taxes on military retirement pensions and survivor benefits, and doubled the income-tax exemption parents can claim for a new child.

For more information on the ways Senate Republicans have cut taxes over the years, click here.