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In an effort to bolster state revenue and address budgetary concerns, Indiana has announced the introduction of new tax laws that will impact residents and businesses across the state. The changes, which were implemented on May 22, 2026, aim to modernize the state's tax code and ensure that all taxpayers are paying their fair share.One of the key changes introduced is the restructuring of the individual income tax brackets. Under the new law, tax rates will be adjusted to better reflect income levels, with higher earners facing a higher tax rate. This progressive taxation system is designed to ensure that those who can afford to pay more contribute a larger share of their income to the state coffers.Additionally, the state has introduced a new tax on digital services, including streaming platforms, online marketplaces, and subscription-based services. This new tax is aimed at capturing revenue from the rapidly growing digital economy and leveling the playing field between traditional and online businesses.Businesses in Indiana will also see changes to their tax obligations. The state has increased the corporate income tax rate for larger businesses, while providing tax breaks for small and medium-sized enterprises. This move is intended to generate more revenue from large corporations while supporting the growth of smaller businesses that are vital to the state's economy.Furthermore, the state has implemented new reporting requirements for online sellers, requiring out-of-state retailers to collect and remit sales tax on purchases made by Indiana residents. This change is in response to the Supreme Court's decision in South Dakota v. Wayfair, which allows states to collect sales tax from online retailers even if they do not have a physical presence in the state.Overall, these new tax laws are expected to generate additional revenue for the state and ensure a more equitable distribution of the tax burden. While some residents and businesses may face higher tax bills, the state government is confident that these changes will ultimately benefit all Hoosiers by improving public services and infrastructure.