Indianapolis, Indiana – As the calendar turns to 2026, Hoosiers are facing a wave of new laws and changes that will take effect starting January 1, reshaping everything from taxes to consumer protections and even school safety measures. While most Indiana laws typically begin mid-year on July 1, several key provisions were scheduled to start with the new year, giving residents and businesses time to adjust to a series of notable updates.
Among the most significant changes are adjustments to property taxes under Senate Enrolled Act 1, Indiana’s comprehensive property tax reform law. For decades, property taxes have been a central concern for homeowners and businesses alike, and this year marks the beginning of several phased-in reforms intended to ease the financial burden. Starting in 2026, the standard homestead deduction will remain at $48,000, providing relief to homeowners, while the supplemental deduction will increase from 37.5% to 40%. Over the next several years, the standard deduction is set to phase out entirely by 2031, while the supplemental deduction will rise to cover two-thirds of a property’s value by that year.
A new homestead tax credit will also take effect this year, offering property owners a credit equal to $300 or 10% of their property tax bill, whichever is lower. Businesses will see changes as well, with the elimination of the 30% tax floor on depreciated equipment purchased in 2026 or later. This means companies will no longer be required to pay taxes on at least 30% of the original purchase price of new equipment. Meanwhile, rental properties and farmland are set to benefit from a new supplemental deduction that starts at 6% in 2026 and will gradually increase to one-third of gross assessed value by 2031. To help homeowners better understand these changes, the Department of Local Government Finance will launch an online property tax transparency portal on Jan. 1, allowing residents to compare current tax bills with alternative rates and provide feedback to state and local officials.
Indiana’s state income tax will also see a modest decrease. The rate will drop from 3% to 2.95%, a reduction that may seem small but can add up for many residents. For someone earning $100,000 annually, the decrease amounts to roughly $50 in yearly savings. While this is not a massive change, officials note it is part of a broader effort to ease the tax burden for Hoosiers and make the state more affordable.
Another significant change involves the Supplemental Nutrition Assistance Program (SNAP). Under the “Smart SNAP” initiative, recipients will no longer be able to use benefits to purchase certain sugary snacks and drinks. The Family and Social Services Administration estimates that approximately 450,000 residents and 5,000 retailers statewide will be affected by this change. Officials say the new rules aim to encourage healthier food choices while still supporting access to essential groceries.
Consumer data privacy also receives an update with a new law that gives residents more control over their personal information. Hoosiers will now have the right to request access to the data companies collect, correct inaccuracies, request deletion under certain conditions, and opt out of targeted advertising. Businesses must disclose how data is used, maintain reasonable security practices, and respond to verified consumer requests. Enforcement will fall under the Indiana Attorney General’s office, which emphasizes compliance and consumer protection.
Several other laws will also go into effect this year. House Enrolled Act 1380 removes electric vehicle registration fees for motorcycle owners, while Senate Enrolled Act 108 limits facilities hosting bingo or casino game nights to three nights per week. House Enrolled Act 1004 requires the Department of Health to establish a process for reporting violations related to health insurance commission disclosures, and House Enrolled Act 1285 mandates that schools ensure at least one employee is trained in nonviolent crisis intervention. 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, or risk receiving a warning from law enforcement.
As Hoosiers adjust to these changes, the Indiana General Assembly is set to reconvene for its 2026 legislative session on Monday, Jan. 5, at 1:30 p.m. Lawmakers are expected to continue refining policies and addressing additional concerns, but for now, residents will be navigating a number of new rules that will touch taxes, health, consumer rights, and daily life across the state. The start of 2026 marks a notable shift in several areas for Indiana, emphasizing both affordability and increased oversight for residents and businesses alike.
