Individual income taxes on the Hoosier state will go down a little, starting January 1st. That’s when the first step in a multi-year tax cut takes effect.

The tax cut package lawmakers approved in the 2022 session gradually lowers the income tax rate by about 10 percent, from 3.23 percent to 2.9 percent.

The first step happens in 2023, starting Jan. 1 – a cut down to 3.15 percent. What does that mean for your wallet? If you make $50,000 a year, it will save you about $40.

This first cut is automatic. But the rest of them – scheduled to take place in 2025, 2027 and 2029 – aren’t.

those cuts will only happen if state revenues are growing by at least 2 percent a year.