In May 2025, the Indiana General Assembly authorized the Indiana Department of Revenue (DOR) to conduct a Tax Amnesty program in 2026. The DOR has since announced the Tax Amnesty 2026 program, providing details on its timeframe, eligibility requirements, payment instructions, benefits, and other key information.

A Limited-time Opportunity to Pay Past Due Taxes

According to DOR data, taxable persons, including individuals and businesses, have a temporary opportunity to resolve unpaid state tax liabilities on favorable terms. The amnesty program applies to taxes administered by the Indiana DOR for tax periods ending before January 1, 2024. Note that while earlier proposals referenced liabilities due before January 1, 2023, the DOR has since clarified that the cutoff date is January 1, 2024.

The program begins on July 15, 2026, and ends on September 9, 2026, after the DOR shortened the originally announced closing date of September 15. As part of the program, the DOR launched an online Tax Amnesty 2026 eligibility tool through INTIME, allowing taxable persons to check whether they qualify. Regarding eligibility, taxable persons who participated in the 2005 or 2015 tax amnesty programs in Indiana are excluded from the program.

Taxable persons who sign up for Tax Amnesty 2026 will be able to pay outstanding taxes while receiving relief from interest, penalties, fees, and other collection costs that would normally apply. In contrast, those who do not participate may be subject to an additional penalty on their eligible liabilities. Nonetheless, those who do participate but do not complete an amnesty payment plan by June 7, 2027, may be subject to an additional penalty on their eligible liabilities.

Conclusion

Based on a detailed review of the inventory of amnesty-eligible liabilities and confidence in its ability to collect them, the DOR estimated it would collect between USD 65 million and USD 145 million. For context, the 2005 and 2015 amnesty programs generated USD 188 million at an administrative cost of approximately USD 6.7 million. Regardless of the success of the program, taxable persons should use this opportunity to settle any unpaid taxes on more favorable terms.