Veterans’ military pensions will be 100 percent exempt from Indiana’s income tax in the next four years. And the state is using that to recruit retiring servicemembers to Indiana.
Gov. Eric Holcomb pushed lawmakers to exempt military pensions from the income tax for years. In 2019, he finally got his wish. It will ultimately cost Indiana nearly $15 million per year in revenue when the pensions are fully exempt. Holcomb says it’s a major recruiting tool.