Bill > HB1550

This bill increases personal exemptions in the definition of "adjusted gross income" for Indiana state tax purposes. Specifically, the bill raises the personal exemption for a taxpayer from $1,000 to $1,500, and for a joint return, increases the exemption to $1,500 for each spouse. For dependents, the exemption is also raised to $1,500. Additionally, for taxpayers filing a separate return where the spouse has no gross income for the calendar year, the exemption for the spouse is increased to $1,500. The changes will apply retroactively to taxable years beginning after December 31, 2024, providing taxpayers with a higher standard deduction that could potentially reduce their state tax liability. The bill includes an emergency declaration, which suggests an urgent need to implement these tax changes, and the provisions will automatically expire on January 1, 2028, allowing the legislature to review and potentially adjust the exemption amounts in the future.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/house/1550/details