Tax Relief

MILITARY TAX DEDUCTIONS

Tax Relief for Military Retirees

This past May, Governor Eric Holcomb signed into law legislation providing tax relief for many Hoosier veterans.

“Our talented, patriotic veterans are some of the most experienced, focused and loyal workers anywhere,” said Gov. Holcomb.  “I’m grateful lawmakers approved the exemption of military pensions from our state income taxes. This will give veterans yet another reason to stay in Indiana or move to Indiana after their military service is over.”

tax-helpThe new law will phase in a full income tax exemption for military retirement pensions over four years, decreasing financial burdens on thousands of veterans.

“This new law helps incentivize veterans to stay in Indiana,” said Representative Bob Cherry, vice-chair of the House Committee on Ways and Means and the bill’s author. “As our state’s economy continues to grow, there are more jobs to fill, and veterans bring in-demand skills to the table with their work ethic, life experiences, and ability to perform under pressure.”

Cherry said nearly 30,000 Hoosier veterans and surviving spouses will be aided once all military retirement and survivor benefits are exempted from Indiana’s state income tax after 2023. With the new law, Indiana joins 23 states that do not tax military retirement pay.

Click here for HEA 1010         http://iga.in.gov/legislative/2019/bills/house/1010