Indiana's tax savings from the "big, beautiful bill"
Add Axios as your preferred source to
see more of our stories on Google.
President Trump's "big, beautiful bill" is expected to save Hoosiers an average of $3,047 on their federal taxes next year, according to an analysis released last week by the Tax Foundation.
Why it matters: The savings could free up money for people to spend on other things, which may be dearly needed as wages still haven't caught up with inflation and tariffs threaten to push costs further.
Catch up fast: The bill also includes new tax breaks for tips and overtime income, a cut for seniors, and an expanded child care tax cut, all of which expire in 2028.
- Trump called the bill "the greatest victory yet," signing it at a White House Independence Day celebration.
Friction point: The bill also made steep cuts to social spending on food assistance and Medicaid, outweighing the benefits for many lower-income Americans. Those mostly don't kick in until 2027 and 2028.
By the numbers: Hoosiers will save a little less than the national average of $3,752 in 2026.
- Wyoming ($5,375) and Washington ($5,372) will experience the biggest breaks.
- Mississippi ($2,401) and West Virginia ($2,503) will see the smallest.
The fine print: Those figures are a comparison between the tax rate in 2026 and what it would've been had the big bill not passed and the 2017 tax cuts expired, Axios' Emily Peck and Jason Lalljee report.
Zoom in: Indiana's average cuts in 2026 range from $2,055 in rural Crawford County to $6,125 in affluent and suburban Hamilton County.