Wednesday, May 3, 2023
Indiana is in a very strong financial position thanks to years of fiscally conservative leadership. As the General Assembly continues to pay off outstanding debt, the state's ability to responsibly cut taxes for Hoosiers increases.
In 2022, the General Assembly passed a law to reduce Indiana's income tax to 2.9% by 2029, and this year, cut the timeline to fully implement the new tax rate by 2027.
However, seven states currently don't have an income tax, and Senate Republicans continue to eye transformational changes to our tax systems. Senate Enrolled Act 3 establishes a State and Local Tax Review Task Force to study all aspects of Indiana's tax system – income and property taxes included. This will allow lawmakers to identify long-term, big-picture ways to make Indiana's tax system work better, instead of making piecemeal changes every few years.
To provide Hoosiers property tax relief next year, the General Assembly passed House Enrolled Act 1499, which expands eligibility for Indiana's property-tax deduction and property-tax credit for senior-citizen homeowners. This allows the income limit for these benefits to grow every year based on the cost-of-living increase for Social Security and help qualifying seniors remain eligibility as their retirement income grows.
Indiana's good financial standing didn't happen by accident or overnight – it took years of fiscally responsible decisions. Senate Republicans understand Hoosiers are feeling financial pressure due to rising inflation and continue to look for more ways to keep hard-earned money in Hoosiers' pockets while improving the state's financial standing.
For more information on these bills visit iga.in.gov.
