INDIANA — As Hoosiers ring in 2026, they are being met with a sweeping set of new state laws and executive orders that will change everything from how they pay their taxes to what they can buy at the grocery store. From historic data privacy protections to a controversial "Smart SNAP" program, the legislative landscape in Indiana has shifted significantly as of January 1.

Here is a breakdown of the most impactful changes now in effect.

1. The "Smart SNAP" Initiative: No More Candy or Soda

In one of the most talked-about changes of the new year, Indiana has officially restricted the use of Supplemental Nutrition Assistance Program (SNAP) benefits. Under Governor Mike Braun’s "Make Indiana Healthy Again" executive order, SNAP recipients can no longer use taxpayer-funded benefits to purchase candy or sugary drinks.

  • What’s Banned: Soda (diet and regular), energy drinks, sports drinks (like Gatorade), and most candies.
  • What’s Allowed: 100% fruit or vegetable juices, milk-based products, and Pedialyte.
  • The Grace Period: While the law is in effect, the USDA has granted a 90-day grace period for retailers to update their point-of-sale systems and for families to adjust to the new rules.

2. Major Property Tax Overhaul (Senate Enrolled Act 1)

Homeowners will see a significant restructuring of their tax bills this year. The state has begun a multi-year transition intended to provide long-term relief while phasing out older deduction models.

  • The Credit: A new homestead credit of $300 or 10% of the tax bill (whichever is lower) is being applied to help offset rising property values.
  • The Shift: The standard $48,000 homestead deduction has begun its phase-out, while the "supplemental deduction" has increased from 37.5% to 40%.
  • Senior Relief: Seniors and disabled veterans will see expanded credits, ensuring that many will see savings even if their homes are at the state's property tax cap.

3. Indiana Consumer Data Protection Act (ICDPA)

As of today, Indiana becomes one of the latest states to grant citizens a "Data Bill of Rights." The ICDPA requires large companies to be transparent about the data they collect. Hoosiers now have the legal right to:

  • Confirm if a company is processing their data.
  • Request a copy of their data or ask that it be deleted/corrected.
  • Opt-out of targeted advertising and the sale of their personal information.

4. Vehicle Color Reporting (Senate Enrolled Act 331)

Car enthusiasts and businesses should take note: it is now a requirement to notify the Bureau of Motor Vehicles (BMV) within 30 days if you change the color of your passenger vehicle.

  • Beyond Paint: This law specifically includes vinyl wraps (partial or full).
  • Penalties: While initial violations typically result in a warning, failing to report a color change after the vehicle was used in a crime is now a Class C misdemeanor.

5. Income Tax Rate Drop

Providing a small boost to every paycheck, Indiana’s flat individual income tax rate has officially dropped from 3.0% to 2.95%. This is part of a planned multi-year reduction aimed at making Indiana one of the most tax-competitive states in the Midwest.

6. Business Fraud Prevention (House Enrolled Act 1593)

For business owners, new rules regarding biennial reports are now active. Notably, remote businesses that do not have a traditional physical office can now list a "contact address" instead of a home address on official filings, provided they use a registered commercial mail agency.

Sources & Further Reading:

  • Indiana General Assembly:iga.in.gov
  • Indiana Family and Social Services Administration (FSSA): Smart SNAP Guidelines
  • Indiana Bureau of Motor Vehicles: Vehicle Registration Updates (SEA 331)
  • Office of the Indiana Attorney General: Consumer Data Bill of Rights
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