LOUISVILLE, Ky. (WDRB) -- Thousands of Indiana National Guard soldiers are now exempt from state income tax.
Gov. Eric Holcomb said the new law passed by the Indiana legislature demonstrates the state's appreciation to those who served the state and country. The exemption begins with the 2023 tax returns.
"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.
It applies to all 12,000 traditional members, military technicians and full-time National Guard soldiers and airmen. But the exemption doesn't apply to any money earned from employment outside of military service.
According to the Indiana Department of Revenue, a member of the National Guard is allowed a deduction from adjusted gross income for wages earned as a result of the member’s military service, including service for National Guard state active-duty missions and federalized overseas missions.
To read more about the legislation, click here.
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