From taxes to SNAP: New laws taking effect Jan. 1, 2026, in the Hoosier State
Dec 30, 2025
New year, new laws. While the majority of state laws take effect in July, there are a few that will take effect at the beginning of the new year.Here's a breakdown of some of the laws that will take effect on January 1, 2026:Inc
ome tax decreaseAs part of the multi-year tax cut, the state income tax will decrease slightly from 3% to 2.95%.SNAP restrictionsSNAP recipients in Indiana will no longer be able to use their benefits to purchase sugary snacks and drinks under the state's "Smart SNAP" initiative. The change impacts 450,000 Hoosiers and 5,000 retailers across the state, according to Family and Social Services Administration (FSSA) Secretary Mitch Roob.MORE | State to assess effects of SNAP restrictions on sugary foods and drinksData privacy updatesThe privacy law requires businesses to be more transparent about how consumer data is used and collected. Hoosiers can access the personal data collected about them, correct inaccuracies, request deletions and opt out of targeted advertising.The Indiana Attoney General's office is responsible for enforcement, with a focus on ensuring businesses comply.Vehicle color changesHoosiers who change the appearance of their vehicle through paint jobs or by adding or removing vinyl wraps will be required to update their vehicle registration according to the new law, Senate Enrolled Act 331. Drivers who fail to notify the BMV within 30 days could be issued a warning from law enforcement.Both chambers will reconvene on Monday, January 5, at 1:30 p.m. More information on the Indiana General Assembly, including bills that will be debated in the upcoming legislative session, can be found here.
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