The majority of laws passed each year by the Indiana General Assembly take effect July 1. But there are always a few that take a little longer.
Lawmakers passed a $1 billion tax cut package this year in HEA 1002. But Hoosiers won’t start to see the bulk of those cuts until January. That’s when the first stage of an income tax cut will take effect.
The individual income tax rate will be about 2.5 percent lower starting next year. It won’t be cut again until at least 2025, and then again in 2027 and 2029. But those cuts starting in 2025 will only happen if state revenues grow at least 2 percent.
And the savings from those cuts will be modest. If you make $50,000 a year, the first cut will save you about $40 a year.
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Other measures took effect more immediately but have due dates in them that are past July 1. For example, lawmakers this year created a task force to examine housing shortages in Indiana. That report, required by HEA 1306, isn’t due until Nov. 1.