(INDIANAPOLIS) - The Indiana Department of Revenue is outlining several tax law changes from the 2026 legislative session that could affect cash purchases, old tax debt, gambling winnings and 2026 state income tax filings.
One of the biggest day-to-day changes is the new cash rounding rule tied to the penny phaseout. For cash purchases and in-person tax payments, totals will now be rounded to the nearest nickel.
The law also expands Indiana's 2026 tax amnesty program, giving taxpayers with unpaid balances from periods before January 1, 2024 a chance to settle up. The amnesty window runs from July 15 through September 9.
For 2026 returns, Indiana is also allowing state deductions that match new federal deductions for tips, overtime pay and auto loan interest.
The law also raises the withholding threshold on gambling winnings to $2,000, with future inflation adjustments built in.
The Department of Revenue says a full 2026 legislative synopsis is now available on its website.