# Indiana HB 1651: Elimination of state individual income tax.

Indiana HB 1651, Elimination of state individual income tax., is a First Regular Session 124th General Assembly (2025) House bill sponsored by Zach Payne (Republican); status failed, last action 2025-01-27 (Representative Sweet added as coauthor) (as of 2026-10-17).

- Canonical: https://policyrisk.com/state-bill/IN-HB1651-2025
- As of: 2026-10-17
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Indiana HB 1651
- State: Indiana
- Session: First Regular Session 124th General Assembly (2025)
- Title: Elimination of state individual income tax.
- Status: failed
- Chamber: House
- Introduced: 2025-01-21
- Last action: 2025-01-27, Representative Sweet added as coauthor
- Sponsor: Zach Payne (Republican)
- Cosponsors: 1
- Subjects: ways and means
- Touches household money: no
- Economic provisions PRIA read: 0

## Summary

Eliminates the state individual adjusted gross income tax by reducing the rate to 0%. Provides that in calculating the local income tax (LIT), which is imposed based on a local taxpayer's state adjusted gross income, the calculation of a taxpayer's state adjusted gross income for LIT purposes shall be calculated under the adjusted gross income tax provisions as if those provisions, and the most recent adjusted gross income tax rate before its elimination, were still in effect.

## Bill overview

No economic impacts identified for this bill.

## Sponsors and cosponsors

- Sponsor: Zach Payne (Republican), House
- Cosponsor: Lorissa Sweet (Republican), House

## Actions (3)

- 2025-01-27: Representative Sweet added as coauthor (House)
- 2025-01-21: Authored by Representative Payne (House)
- 2025-01-21: First reading: referred to Committee on Ways and Means (House)

## Bill text

- Introduced House Bill (H): [PDF](https://api.iga.in.gov/2025/bills/HB1651/versions/HB1651.01.INTR?format=pdf)

## Related bills

- SB 324: Criminal procedures. (signed)
- SB 231: Various corrections matters. (signed)
- SB 80: Code publication. (signed)
- SB 453: Various tax matters. (signed)
- SB 464: Financial institutions and consumer credit. (signed)
- SB 371: Workforce matters. (signed)

## Sources
- [Introduced House Bill (H) (PDF)](https://api.iga.in.gov/2025/bills/HB1651/versions/HB1651.01.INTR?format=pdf)

## Related
- [SB 324: Criminal procedures.](https://policyrisk.com/state-bill/IN-SB324-2025)
- [SB 231: Various corrections matters.](https://policyrisk.com/state-bill/IN-SB231-2025)
- [SB 80: Code publication.](https://policyrisk.com/state-bill/IN-SB80-2025)
- [SB 453: Various tax matters.](https://policyrisk.com/state-bill/IN-SB453-2025)
- [SB 464: Financial institutions and consumer credit.](https://policyrisk.com/state-bill/IN-SB464-2025)
- [SB 371: Workforce matters.](https://policyrisk.com/state-bill/IN-SB371-2025)
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Source: PRIA, https://policyrisk.com/state-bill/IN-HB1651-2025 (as of 2026-10-17).