New year, new laws

What Hoosiers should know as several changes take effect

By KATIE COX
WISH-TV | wishtv.com

As the calendar turns to 2026, several Indiana laws approved during recent legislative sessions went into effect Jan. 1.

While Indiana lawmakers typically schedule most new laws to begin July 1, some provisions are delayed until the start of the year. For 2026, several of those changes center on taxes, along with a mix of unrelated measures affecting daily life for Hoosiers.

Property tax changes begin phasing in

Several provisions of Senate Enrolled Act 1, Indiana’s major property tax reform law, took effect Jan. 1.

The law reduces property taxes by increasing exemptions and deductions so less of a property’s value is taxed.

For 2026, the standard homestead deduction will remain at $48,000. At the same time, the supplemental deduction will increase from 37.5 percent to 40 percent. The standard deduction will gradually phase out and be eliminated by 2031, while the supplemental deduction will rise to two-thirds of a property’s value by that year.

A new homestead tax credit will also take effect. Property owners will receive a credit equal to $300 or 10 percent of their property tax bill, whichever amount is lower.

Additional changes include the elimination of the 30 percent tax floor on depreciated business equipment purchased in 2026 or later, meaning businesses will no longer be required to pay taxes on at least 30 percent of the original purchase price.

Rental properties and farmland will also receive a new supplemental deduction that begins at 6 percent in 2026 and increases to one-third of the gross assessed value by 2031.

The Department of Local Government Finance was required to launch an online property tax transparency portal by Jan. 1. The portal is intended to allow property owners to compare their current tax bill with alternative tax rates and provide feedback to state and local governments.

State income tax decrease

Indiana’s state income tax rate will decrease slightly at the start of the year, dropping from 3 percent to 2.95 percent.

The reduction stems from the 2023 budget cycle. For someone earning $100,000 annually, the change amounts to about $50 in yearly savings.

SNAP purchase restrictions

Under Indiana’s “Smart SNAP” initiative, SNAP recipients will no longer be allowed to use benefits to purchase certain sugary snacks and drinks.

According to the Family and Social Services Administration, the change affects about 450,000 Hoosiers and roughly 5,000 retailers statewide.

Data privacy updates

A consumer data privacy law will give Hoosiers new rights over how their personal data is collected and used by companies.

Consumers can request access to their personal data, correct inaccuracies, request deletion under certain conditions and opt out of targeted advertising.

Businesses are required to disclose how data is collected and used, implement reasonable security practices and respond to verified consumer requests. The Indiana Attorney General’s office is responsible for enforcement, with an emphasis on compliance.

Other laws taking effect Jan. 1

Several additional provisions begin with the new year:

• Under House Enrolled Act 1380, electric vehicle registration fees will no longer apply to motorcycle owners.
• Senate Enrolled Act 108 limits facilities that host bingo or casino game nights to no more than three nights per week.
• House Enrolled Act 1004 requires the Department of Health to establish a reporting process for violations related to health insurance commission disclosures.
• House Enrolled Act 1285 requires schools to ensure at least one employee on site during the school year has received nonviolent crisis intervention training.
• Senate Enrolled Act 331 requires drivers who change a vehicle’s color through paint or vinyl wraps to notify the Bureau of Motor Vehicles within 30 days. Failure to do so could result in a warning from law enforcement.

Both chambers of the Indiana General Assembly will reconvene for the 2026 legislative session on Monday, Jan. 5, at 1:30 p.m.

This story was originally published by WISH-TV at wishtv.com/news/new-year-new-laws-what-hoosiers-should-know-as-several-changes-take-effect-jan-1-2026.