Several new Indiana laws are now in force or take effect for the 2026 tax and assessment year, touching income tax rates, property tax deductions for seniors and veterans, school cell phone use, third-grade reading retention, work-zone speed cameras, health insurance coverage, teen work hours, and AI-generated political ads. Most originated in the 2024 legislative session and took effect July 1, 2024; a few provisions phase in later. Here’s what applies to you.
Income Tax Rate for 2026
Indiana’s individual adjusted gross income tax rate is 2.95% for the 2026 tax year, one step in a schedule set by House Enrolled Act 1001 (2023) that brings the flat rate down to 2.9% in 2027.1IN.gov. DOR: Rates Fees and Penalties Withholding tables adjust automatically each year, so most workers see slightly higher take-home pay without filing anything new. The rest of the benefit shows up when you file.
Property Tax Deductions to File For
Homeowners 65 and Older
If you’re 65 or older and your home’s assessed value is at or below $240,000, you can claim the over-65 property tax deduction by filing an application with your county auditor. Applications completed by January 15 apply to that year’s tax bill.2indy.gov. Apply for a Homestead Deduction Miss the date and you lose the deduction for the year, with no retroactive fix. If you just turned 65 or bought a new home, put this on the calendar.
Disabled Veterans
Veterans with a total disability rating from the U.S. Department of Veterans Affairs can deduct up to $14,000 from the assessed value of their primary Indiana residence.3Indiana Department of Veterans Affairs. Disabled Veteran Property Tax Deduction Veterans who are at least 62 years old with a disability rating of at least 10% also qualify for the same $14,000. You need at least 90 days of service, an honorable discharge, and combined assessed value of real estate and personal property no higher than $240,000.
Starting with the January 1, 2026 assessment date, veterans rated by the VA as individually unemployable also qualify, even without a total disability rating on paper.4BillTrack50. IN HB1168 File with your county auditor by the annual deadline.
School Rules That Affect Your Family
Phones and Devices During Class
Senate Enrolled Act 185 requires every public and charter school district to adopt a policy banning student use of portable wireless devices during instructional time. Phones, tablets, laptops, and gaming systems are covered. Teachers can still allow devices for specific classroom activities, and students who need a device for health monitoring or a disability-related accommodation are exempt.
Third-Grade Reading and IREAD-3
Senate Enrolled Act 1 changed how Indiana handles early reading. Second graders now take the IREAD-3 assessment each spring, and testing continues annually through grade six until a student passes or is promoted to seventh grade.5IN.gov. DOE: IREAD Third graders who don’t pass and don’t qualify for a good cause exemption are retained in third grade.
Schools must offer summer programs and intensive reading support for students at risk of retention, and families must be brought into the remediation plan. Good cause exemptions exist for students with significant cognitive disabilities and for English learners with limited time in English-language instruction, but the exemptions are narrow. If your child struggles with reading, engagement well before third grade matters.
Release Time for Religious Instruction
House Enrolled Act 1137 requires a principal to release a student for up to 120 minutes per week to attend an off-campus religious instruction program when a parent submits written notice.6Indiana General Assembly. House Bill 1137 Schools don’t provide transportation or funding. Absences count as excused, but the student is still responsible for missed classwork.
On the Road
Automated Cameras in Highway Work Zones
Under House Enrolled Act 1015, cameras can photograph rear license plates of vehicles going 11 mph or more over the posted limit in active work zones, but only when workers are physically present.7Indiana Department of Transportation. Safe Zones Penalties escalate:
- First violation: a written warning mailed to the registered owner, no fine.
- Second violation: a $75 civil penalty.
- Third and subsequent violations: a $150 civil penalty each.8Indiana Safe Zones. Press Release 4
These are civil penalties, not criminal traffic tickets, so they don’t add points to your driving record. Work zones using the cameras must post advance signage.
Green Alerts for Missing Veterans
Indiana’s Green Alert system broadcasts descriptions and last-known locations of missing veterans who may be in danger from service-related physical or mental health conditions, operating like Amber and Silver Alerts through mobile devices and highway message signs.9Indiana General Assembly. Indiana Code 2023 House Bill 1104
Move Over for Sanitation Trucks
Indiana’s move-over law now covers stationary recycling and garbage trucks with flashing lights. Drivers must change lanes or significantly reduce speed on approach, or face a traffic infraction and fine.
Health Insurance Changes
Coverage for Biomarker Testing
Senate Enrolled Act 273 requires Indiana health plans to cover biomarker testing used to diagnose, treat, manage, or monitor a patient’s disease or condition when the testing is supported by medical and scientific evidence.10Indiana General Assembly. Senate Bill 273 – Biomarker Testing Coverage The requirement reaches accident and sickness insurance policies, HMO contracts, Medicaid managed care, and state employee health plans. For Medicaid, the Office of Medicaid Policy and Planning must provide biomarker testing as a program service and apply for any necessary federal waivers. Biomarker testing often drives cancer treatment decisions, so mandated coverage removes a financial barrier that had blocked some patients from testing their doctors recommended.
Prior Authorization Response Times
Under Indiana Code 27-1-37.5-23, a utilization review entity must respond to an urgent prior authorization request with an authorization or an adverse determination within 48 hours.11Indiana General Assembly. Indiana Code 27-1-37.5-23 – Request for Prior Authorization; Process Denials must be reviewed by a physician with relevant clinical expertise. If your insurer misses these standards on an urgent request, that’s a compliance issue worth raising in an appeal.
Teen Workers
House Enrolled Act 1093 rewrote several parts of Indiana’s child labor law. Minors aged 16 and 17 can now work in agricultural jobs that had been classified as hazardous occupations.12LegiScan. IN HB1093 – 2024 Regular Session Hour and scheduling rules loosened as well:
- For 14- and 15-year-olds, new exemptions from certain hour and scheduling restrictions apply, including removal of the rule limiting work to before 7 p.m. on nights before school days during summer.
- For 16- and 17-year-olds, the previous hour and time restrictions were repealed entirely, including restrictions on working between 10 p.m. and 6 a.m.
The state no longer caps late-night hours for older teens, but nothing requires an employer to schedule a minor for late shifts either. If a teenager’s schedule conflicts with school, that’s now a conversation with the employer rather than a legal limit the state enforces.
AI-Generated Content in Campaign Ads
House Enrolled Act 1133 defines “fabricated media” as audio or visual content altered or artificially generated without a person’s consent in a way lifelike enough to fool a reasonable viewer.13Indiana General Assembly. House Bill 1133 – Use of Digitally Altered Media in Elections Candidates who use generative AI in political advertising must include a disclaimer disclosing that fact. If you’re depicted in fabricated media without your consent, you can bring a civil action against the person who paid for the material, the person who sponsored it, and the person who disseminated it.