No Tax Medicaid Reforms
Mar 26, 2026
STATEHOUSE, (WOWO) — Indiana lawmakers passed legislation during the 2026 legislative session to support workers and strengthen oversight of state programs.
Through Senate Enrolled Act 243, lawmakers eliminated the state income tax on tips and overtime. Indiana State Represenative Craig Snow (R-Wa
rsaw) sponsored the bill. He says the law aims to let workers keep more of their earnings while also streamlining the application process for the state’s adoption tax credit.
“Supporting Hoosier families means making sure they can keep more of what they earn and access the help available to them,” Snow said. “By eliminating the state tax on tips and overtime and streamlining the adoption tax credit application, we’re helping working Hoosiers keep more money in their pockets and making financial support easier for families to access.”
Senate Enrolled Act 1 was also passed by lawmakers to make sure Indiana’s Medicaid program’s accountability is improved and remains sustainable for those who rely on it.
The law includes stronger work requirements for able-bodied adults, increases oversight and reinforces financial eligibility checks to reduce program waste and abuse.
State Represenative Peggy Mayfield (R-Martinsville) says these changes safeguard an essential program while making sure Hoosiers are responsbile using taxpayer funds.
“Medicaid is an important safety net for many Hoosiers, but it must also be sustainable,” Mayfield said. “These reforms strengthen accountability, reduce waste and help ensure the program continues serving those who truly need it.”
To learn more about these laws passed during the 2026 session, you can check out iga.in.gov.
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