Indiana legislative leaders say likely no major tax changes in 2025 session

Indiana legislative leaders say they likely won’t enact transformative changes to the state’s tax system in the 2025 legislative session.

Lawmakers have been studying the tax code for two years — an effort initially aimed at potentially eliminating the income tax.

But Senate President Pro Tem Rodric Bray (R-Martinsville) said the focus has shifted largely to property taxes.

“I don’t know that you’ll see really big changes happen this year — maybe some tweaks to kind of help people feel a little less of a pinch than they have,” Bray said.

House Minority Leader Phil GiaQuinta (D-Fort Wayne) said any property tax changes that affect local governments will create calls for replacement revenue.

“If we’re going to take away from one, how do we replace it to make sure local governments can function the way they need to,” GiaQuinta said.

READ MORE: Indiana tax reform could lead to changes in school funding

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House Speaker Todd Huston (R-Fishers) said the two-year study of the tax code revealed why big changes aren’t necessarily required.

“We are attracting people; we are attracting investment,” Huston said. “Part of the reason we’ve done that, a lot of the reason we’ve done that is we’ve got a great tax system — a stable tax system, a reliable tax system.”

The legislative session begins in January.

Brandon is our Statehouse bureau chief. Contact him at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.