Indiana Governor Pushes to End Tax on Tips, Retirement Income

New Indiana Gov. Mike Braun (R) said Thursday he wants to eliminate taxes on tips and retirement income in his fiscal 2026-27 budget proposal.

Braun’s plan would phase out state taxes on retirement income over four years and exempt tips received by individuals employed in a “service-providing industry occupation” from the adjusted gross income tax.

This is the first budget for Braun, who was sworn in Jan. 13 and previously represented Indiana in the US Senate. His tax relief agenda totals $265 million in fiscal 2026 and $431 million in fiscal 2027, and also calls for:

• Annual three-day ...