No Tax on Tips, Medicaid Reforms

No Tax on Tips, Medicaid Reforms

March 20, 2026 · 2 min

About this episode

Indiana lawmakers discuss new legislation eliminating state income tax on tips and reforms to Medicaid.

Indiana lawmakers passed legislation during the 2026 legislative session to support workers and strengthen oversight of state programs. New policies eliminate the state income tax on tips and overtime so workers can keep more of what they earn. Lawmakers also approved reforms to improve accountability in Indiana’s Medicaid program and ensure it remains sustainable for those who rely on it. State Reps. Craig Snow (R-Warsaw) and Peggy Mayfield (R-Martinsville) discuss how these changes support Hoosier workers while protecting taxpayer dollars.

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