INDIANA — The Indiana Department of Revenue (DOR) has issued an overview of several major tax legislation changes, executive updates, and upcoming compliance programs following the conclusion of the 2026 Indiana General Assembly session.
A variety of new laws, forms, and relief measures officially took effect on July 1, 2026, or are scheduled for launch later this month.
Sales Tax Exemptions for Youth Organizations (HEA 1406)
Under House Enrolled Act 1406, certain nonprofit organizations are now completely exempt from the standard $100,000 threshold required for nonprofits to collect and remit Indiana sales tax. Moving forward, the following groups are no longer required to collect sales tax on their sales:
- Educational youth organizations listed under 36 U.S.C. 101 et. seq. that actively promote patriotism and civic involvement.
- Youth organizations that hold federal 501(c)(3) tax-exempt status and specifically promote youth shooting sports.
County Tax Warrants and Legal Liens (SEA 243)
Taxpayers are reminded of the strengthening collection standards under Senate Enrolled Act 243. The legislation clarifies that any official tax warrant filed with an Indiana county clerk immediately becomes a matter of public record and constitutes a formal judgment lien or levy against the debtor’s property within the state.
A full breakdown of statutory updates can be found in the DOR’s newly published 2026 Legislative Synopsis.
Governor Extends Summer Gas Tax Holiday
In a major move for Hoosier drivers, Governor Mike Braun updated his ongoing energy emergency declaration on July 2, 2026, officially extending the suspension of state gasoline taxes.
Per the executive order, the DOR will alter its collection schedules as follows:
- Gasoline Use Tax: Collection is entirely suspended from April 8 through August 6, 2026.
- Gasoline Excise Tax: Collection is entirely suspended from May 6 through August 6, 2026.
Consumers, distributors, and retailers can view adjusted rate tables via Departmental Notice 2 on the state’s Gasoline Use Tax webpage.
Preparation for Tax Amnesty 2026 Begins
The DOR, in partnership with the United Collection Bureau (UCB), has announced “Tax Amnesty 2026,” a strict, limited-time compliance window running from July 15 through September 9, 2026.
The program offers a rare opportunity for individuals and businesses to resolve past-due, eligible state taxes. Taxpayers who pay their base tax liabilities in full during this period will receive a complete waiver of all associated penalties, interest, and state collection fees. To qualify, the outstanding tax liabilities must belong to tax periods that ended prior to January 1, 2024.
State tax officials recommend that residents prepare by checking existing liabilities using the online tax amnesty tool found on the INTIME portal or by calling UCB directly at 888-782-5985.
New Forms and Information Bulletins
The state has also rolled out Form POA-R (Revocation of Power of Attorney), allowing taxpayers a concrete method to permanently or selectively revoke a Power of Attorney for specific tax types or periods. Traditional paper filings must use the new form, while electronic power of attorney (ePOA) revocations must still be processed digitally through INTIME.
Finally, the DOR has published several updated Information Bulletins for public review, highlighting brand new deductions and procedures:
- Sales Tax Bulletin 10: Application of Sales Tax to Nonprofit Organizations
- Income Tax Bulletin 127: Modifications for Specified Research Expenditures
- Income Tax Bulletin 128: Deductions for Tips, Overtime, and Vehicle Loan Interest
- General Tax Bulletin 300: Sales of Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG)
- General Tax Bulletin 305: Motor Carrier Fuel Tax Rate
