US EditionIndiana Senate pushes to extend Trump's 'no tax on tips' to ...
The amendment would cost Indiana $251 million and applies retroactively to 2026 wages, aiming to ease tax burdens on tipped and overtime workers for one year.
- An early-morning committee meeting tacked on a one-year tax break to Senate Bill 243, cutting state income taxes on tips and overtime and advancing it on Jan. 20, 2026.
- The amendment couples Indiana law to federal changes by linking tax code to President Donald Trump’s One Big Beautiful Bill, while Indiana lawmakers cited White House pressure and a stronger revenue forecast.
- Committee records show the amendment was inserted into Senate Bill 243, passing 11-1, applying to $25,000 in tips, $12,500 in overtime, and new vehicles purchased after December 2024.
- If signed, the change would apply retroactively to 2026 wages , expire in January 2027, with Sen. Travis Holdman citing reserves and Senate President Pro Tempore Rodric Bray praising the cuts as a way to help Hoosiers.
- The House could act quickly, but lawmakers said `It's unclear whether the House would accept the tax changes`; Democrats opposed the package, and 2027 budget negotiations will decide permanence amid over 20 tax cuts by Statehouse Republicans.
12 Articles
12 Articles
Indiana Senate committee adopts state tax cut for overtime and tips
(INDIANA CAPITAL CHRONICLE) — A key finance panel on Tuesday inserted a one-year state income tax break on overtime and tips for Hoosier workers. The amendment would cost the state $251 million in tax revenue and that loss would be covered by the growing state surplus, said Sen. Travis Holdman, R-Markle. “This would be for just one year until we see if we can actually afford to go forward. And folks, this would come out of the reserves that we h…
Ind. Senate Republicans vote in favor of no tax on tips
INDIANAPOLIS, Ind. (WTWO/WAWV) — Tuesday, Indiana Senate Republicans voted in favor of implementing tax cuts for working Hoosiers, which includes no tax on tips or overtime, said Senate President Pro Tem Rodric Bray (R-Martinsville). According to a news release from the Indiana Senate Republicans, Senate Bill 243 would align Indiana's tax code to the federal [...]
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