Indiana does not use either the federal standard deduction or itemized deductions when calculating Indiana taxable income. Instead, Indiana allows certain exemptions that reduce taxable income.
For the 2026 tax year, you may claim a $1,000 exemption for:
- Yourself,
- Your spouse if filing jointly, and
- Each qualifying dependent claimed on your return.
Additional Exemption for Certain Dependent Children
Indiana provides an additional $1,500 exemption for each qualifying dependent child who meets the state's eligibility requirements. See the Indiana instructions for details.
If you are claiming a child for the first tax year in which the additional dependent child exemption is allowed, you may claim $3,000 instead of $1,500 for that child for one year. This special first-year exemption is not available if the child could have qualified for the $1,500 exemption in any earlier year, even if the child was not previously claimed.
Additional Exemptions for Age or Blindness
You may also qualify for additional Indiana exemptions if you or your spouse:
- Are age 65 or older: $1,000 exemption, and/or
- Are legally blind: $1,000 exemption.
Indiana also offers an extra $500 exemption for each taxpayer or spouse who is age 65 or older if:
- Your Federal Adjusted Gross Income (AGI) is less than $40,000, or
- Less than $20,000 if married filing separately.