Indiana will no longer tax military tax pensions after 2021

News
This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.
Data pix.

INDIANAPOLIS, Ind. -- In the next four years, military pensions will no longer be taxed in Indiana in what Governor Eric Holcomb said is one of his proudest accomplishments of the year.

He is looking forward to recruitment benefits.

“A lot of people go to Tennessee, Texas and Florida because they don’t have a state income tax, and so they retire there,” said Lt. Col. Brittany Simmons, commander for the Indianapolis Army Recruiting Battalion.

Air-Force Veteran Joe Jobin said he served in Texas during his 20 years in the military.

“I know the benefits that they have for the veterans that retire in that area, and to hear that was coming to our area, that they were recognizing us and putting that back into our pockets, I was very pleased to hear it,” said Jobin.

He said his family could use the extra money.

“We’re just like everybody else. We have the bills to pay: water, electric. It’s Christmas time. We’ve got to buy some presents,” said Jobin.

Gov. Holcomb pushed lawmakers to pass it last session. The exemption is phased in at 25% each year, not reaching 100% until after 2021. Once that happens, it’s expected to cost Indiana $15 million per year in revenue, but Holcomb said the benefits are greater.

“Not only do I think folks earned it and should keep it," said Holcomb, "it also was taking us off the list of states that were attractive to go start a second career, so that was a big deal."

“So this just puts Indiana on par with some of these other states in showing how much they care for their service members,” added Simmons.

Jobin hopes people take the time to learn about military opportunities in Indiana.

“Make sure you do your research, get on the internet, find out what the state does for you," said Jobin. "There’s education benefits, there’s housing benefits that involve tax. Make sure you are taking advantage of each of those."

He said he isn’t sure how much this will save his family yet, but every little bit adds up.

“I’m looking forward to having those few extra dollars to help out with those different bills," said Jobin. "Maybe get the wife something extra nice for Christmas.”

Latest News

More News