INDIANAPOLIS (AP) -
Indianaís personal income tax rate will drop slightly beginning New Yearís
Day, completing a phased-in reduction thatís half of the 10 percent cut
Republican Gov. Mike Pence pushed during his 2012 campaign.
The state income
tax rate will become 3.23 percent for 2017, down from the 3.3 percent rate
thatís been in place the past two years.
Republican-dominated Legislature approved the reductions in a 2013 package
that included corporate and inheritance tax cuts. The income tax rate had
been 3.4 percent since the 1980s.
The changes mean
someone with $50,000 in taxable income will see their state income tax bill
drop by $35 for 2017.
economist Larry DeBoer has estimated the income tax cuts amount to $265
million in taxpayer savings this state budget year.