Indiana Gov. Braun signs order to eliminate marriage tax penalties

Indiana Governor Mike Braun signed an executive order aimed at removing 'marriage penalties' from the state's tax and benefit policies, asserting that current regulations disadvantage married couples. The order directs the Indiana Department of Revenue and other state agencies to evaluate laws that may disincentivize marriage, such as tax exemption caps that do not differ between single and married filers. For instance, both single and married couples can deduct a maximum of $3,000 in rent and receive the same $1,500 credit for 529 contributions. Braun emphasized that marriage is a cornerstone of strong families and communities, and he believes the tax system should encourage rather than penalize marriage. Agencies are required to submit reports by July 1, 2025, for tax policies and July 1, 2026, for benefit programs with recommendations for change. While Braun cannot unilaterally implement these changes, he hopes to influence future legislative actions.