Hoosier military members are set to receive much-needed tax relief thanks to a new law supported by State Rep. Bruce Borders (R-Jasonville).
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. Borders said National Guard and reserve members already receive a $5,000 deduction, and a full income tax exemption when mobilized or on duty.
“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,” Borders said. “Moving forward, I’ll continue to support efforts to welcome more service members here and retain those we have.”
According to Borders, other states, including Michigan and Kentucky, offer a full income tax exemption to all service members.