INDIANAPOLIS – Residents of Indiana should know about changes to the state’s tax policy that took effect on Jan. 1, 2024. House Bill 1001 accelerates previously planned rate cuts. The individual income tax rate has been reduced from 3.15 percent to 3.05 percent in 2024, with further reductions to 3.0 percent in 2025, 2.95 percent in 2026, and 2.9 percent in 2027 and beyond.