In Indiana, our veterans will soon no longer pay a state tax on their income from their military retirement pensions. A new law now in effect phases in the full exemption over four years, decreasing financial burdens for nearly 30,000 Hoosier veterans and surviving spouses. This exemption will keep millions of dollars in the pockets of veterans and their families.
Indiana joins 23 other states that have implemented this policy on behalf of our military men and women. When retiring veterans decide where they want to live, they consider this. By removing this financial strain, we make our state a more attractive place to call home. They can also take their savings and spend it in our communities.
We want to encourage veterans to live here and help fill our growing number of open jobs in high-demand fields. Their work ethic and skills sharpened while defending the Red, White and Blue, make them a great asset to our workforce.
The legislation is a smart decision and one the governor and I both supported.
“Our talented, patriotic veterans are some of the most experienced, focused and loyal workers anywhere,” said Indiana Gov. Eric Holcomb. “I’m grateful lawmakers approved the exemption of military pensions from our state income taxes. This will give veterans yet another reason to stay in Indiana or move to Indiana after their military service is over.”
The U.S. Department of Veterans Affairs estimates our nation’s veteran population will drop by several million over the next 25 years, and our military is currently experiencing a decline in recruiting. This law could further entice young Americans to serve. While everyone has a different reason for enlisting, this one added benefit Indiana can provide to the brave men and women who answer the call of duty.
State Rep. Randy Frye (R-Greensburg) represents Ohio, Ripley and Switzerland counties, as well as portions of Decatur, Jennings, Jefferson and Dearborn counties.