State tax exemption for Indiana National Guardsmen begins with 2023 returns
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As tax season approaches, state officials are reminding Hoosiers of a new law that exempts Indiana National Guardsmen from paying state income taxes.
Gov. Eric Holcomb signed the legislation into law in May. The exemption applies to all Hoosier Guardsmen and reserve members, including traditional members, dual status military technicians, and full-time National Guard soldiers and airmen.
The exemptions begin with 2023 returns and are expected to apply to about 12,000 troops.
“By completely phasing out state taxes on military veteran retirement in 2022 and eliminating the state income tax for Hoosier Guardsmen in 2023, Indiana continues to demonstrate our state’s enduring appreciation for the exemplary women and men who serve our local communities, state and nation in the Indiana National Guard,” Holcomb said in a news release.
Independent military contractors will not be eligible for the exemption. The exemption also may not be taken for wages earned for work conducted outside of military service.
Military personnel must still file an Indiana income tax return if their gross income is more than their exemptions. More information about the exemptions can be found by clicking here.