Governor Mike Braun announced the signing of an executive order (Executive Order 25-51) aimed at removing ‘marriage penalties’ or policies that disincentivize marriage.
Indiana’s tax system disadvantages married couples in many ways, including exemption caps that remain the same for single and married filing jointly taxpayers.
An initial review of Indiana’s tax and benefits policies found multiple instances of policies that may be disincentivizing marriage. For example, a single filer can deduct up to $3,000 in rent, but a married couple filing jointly also gets only $3,000; not double. Also, a single filer and a married couple get the same $1,500 max credit on 529 contributions.
This executive order directs the Indiana Department of Revenue and all executive state agencies that administer welfare or benefit programs to evaluate and identify laws or policies that disadvantage married couples.
Agencies must provide detailed reports by July 1st, 2025, for tax policies, and July 1st, 2026, for benefit programs, with recommended changes that remove marriage penalties.
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