HEA 1210-2026 pushed SEA 1's local income tax overhaul back a year. Current LIT rates now run through 2028, the 2.9% framework starts January 1, 2029, and counties face an October 1, 2026 MUST deadline first.
There was no SB 1 replacement LIT for counties to impose in 2025 or 2026. Here is what Indiana counties have actually done: current rates, reshuffled components, the homestead-relief option, and the MUST taskforces HEA 1210 created, plus the 2028-2029 deadlines.
SB 1's property tax relief has to be paid for somewhere. Its local income tax overhaul, delayed by HEA 1210 to January 1, 2029, caps county rates at 2.9% and gives larger cities and towns their own rate of up to 1.2%. What changes, when, and who wins and loses.