IndianaBill would let taxpayers deduct health insurance premiums
For tax years beginning after 2026, covered Indiana taxpayers could deduct the health insurance premiums they paid from adjusted gross income when filing state income taxes.
What it does
A taxpayer covered by a health insurance plan could deduct the premiums they paid for that year's coverage from adjusted gross income. The plan may cover medical, dental, or vision care.
Argument forTaxpayers who pay for health coverage could owe less state income tax, leaving them more money for health costs.
Argument againstBecause the deduction equals all premiums paid, it could reduce state income tax collections, leaving less money available for other state needs.
More detail
A covered taxpayer could deduct the premiums they paid for health insurance from adjusted gross income. This applies to individuals filing single returns, married couples filing jointly, and married people filing separately. A health insurance plan must provide or pay for health care, which may include dental and vision care. For spouses filing separate returns, each spouse's deduction is 50% of the total premiums allowed for the deduction. This applies to taxable years beginning after December 31, 2026.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jan 22Senators Pol, Charbonneau added as coauthorsLatest
- Jan 22Senator Qaddoura added as third author
- Jan 22Senator Goode added as second author
- Jan 5Authored by Senator Young M
- Jan 5First reading: referred to Committee on AppropriationsIntroduced
Taxes & BudgetHealthcare