Bill > SB0390

This bill introduces a new tax provision for individuals earning minimum wage in Indiana, providing a tax exemption and filing relief. Specifically, the bill defines "minimum wage income" as gross earnings from a single employer within a taxable year that do not exceed the state's statutory minimum wage, including overtime pay. Under this legislation, individuals whose only income is minimum wage are exempt from paying adjusted gross income tax and are not required to file a state income tax return. Additionally, employers are not obligated to withhold taxes from minimum wage income for such employees. The bill will apply retroactively to taxable years beginning after December 31, 2024, and is set to expire on July 1, 2028. By creating this exemption, the legislation aims to provide financial relief for low-wage workers by reducing their tax burden and administrative requirements, potentially making minimum wage jobs more financially attractive and easing the tax compliance process for both employees and employers.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/senate/390/details