SOUTH BEND, Ind. -- As Hoosiers and Michiganders ring in the New Year, there are some new laws and changes beginning on January 1 at the state level to know about.

Indiana

Property Tax Provisions:

Senate Enrolled Act One is expected to save homeowners a total of $1.3 billion over the next three years. Hoosiers will begin to see changes on their 2026 property tax bills.

• Starting January 1, 2026, the law will phase out the standard home deduction of $48,000, while the supplemental deduction will gradually increase, starting with a rise from 37.5% to 40%. By 2031, the standard deduction will no longer exist while the supplemental deduction will be 66% of the property value.
• A new credit will be taken off of homestead property tax bills for either $300 or 10% of the tax bill, whichever amount is lower.
• Counties can choose to give homeowners the option to defer up to $500 of their property tax bill each year, up to a maximum of $10,000 until their house is sold.
• Seniors will see greater property tax credits, leading to savings even if their bill is already at the property tax cap.

Smart SNAP Restrictions:

Under an executive order from Governor Mike Braun, candy and sugary drinks are excluded from being purchased using SNAP benefits beginning January 1. The definitions approved by the USDA are as follows:

• Candy: A preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces. The term does not include any preparation requiring refrigeration.
• Sugary drinks: Non-alcoholic beverages that contain natural or artificial sweeteners. The term does not include beverages that contain milk or milk products, soy, rice, or similar milk substitutes, or are exclusively naturally sweetened using natural vegetable and/or fruit juice.

State Income Tax Decrease:

Indiana's state income tax will decrease from 3% to 2.95% as part of a multi-year tax cut that was previously enacted.

Consumer Privacy Law:

The Indiana Consumer Data Protection Act, initially passed in 2023, addresses a wide range of state privacy laws. Indiana Attorney General Todd Rokita released a Data Consumer Bill of Rights in preparation for the law taking effect, which explains Hoosiers' privacy rights.

Vehicle Color Change Law:

Senate Enrolled Act 331 requires vehicle owners to notify the BMV if you change the color of your vehicle through either application of paint, installation of a partial or full vinyl vehicle wrap, or the removal of a partial or full vinyl vehicle wrap. Failure to do so could result in law enforcement action. If the vehicle's color is changed after being used in a crime and the BMV is not notified, the vehicle's owner could be charged with a Class C Misdemeanor.

Michigan

Minimum Wage Increase:

The Improved Workforce Opportunity Wage Act raises Michigan's state minimum wage rate from $12.48 to $13.73 per hour on January 1.

• The law establishes a gradual increase to reach a minimum wage of $15.00 per hour by 2027.
• The tipped employee rate of hourly pay increases to $5.49 per hour, 40% of the full minimum wage, provided the employee receives at least $8.24 in tips. A phased increase will bring the minimum cash wage to 50% of the general minimum wage by 2031.
• The 85% rate for minors age 16 and 17 will increase from $10.60 to $11.67 per hour.

Wholesale Marijuana Tax:

A new 24% wholesale marijuana tax takes effect on January 1. The tax will apply to all taxable sales and transfers between growers and retailers. Cannabis will be taxed before it reaches dispensary shelves. The tax is not applied to sales between retailers and the average buyer, though industry analysts believe retailers could raise the prices of their product as a result of the wholesale tax. Revenue generated by the new tax will be put into Michigan's Neighborhood Road Fund for future road improvements.

"Taylor Swift" Laws:

Senate Enrolled Bill 158 and House Enrolled Bill 4262 create the Ticket Sales Act. It prohibits online 'bots' from buying a large number of tickets to concerts, sporting events and other shows. The legislation was spurred by online ticket sales for Taylor Swift's Eras Tour being manipulated by bots, driving up prices. The attorney general can also take civil action for violating the act, up to a $5,000 fine.

Unemployment Benefits Increase:

New unemployment claims may qualify up to $530 per week starting January 1, with a previous cap of $446. The weekly unemployment benefit amount will increase on a phased schedule in the coming years to keep up with inflation. The amount provided for eligible dependents will also rise.

Child Care Center Door Locks:

Senate Enrolled Bills 96, 97 and 98 will allow licensed childcare centers to install temporary locks on classroom and facility doors. The change gives childcare centers the same safety options as K-12 schools.

Land Division for Housing:

The number of parcels that can be split from a single tract of land will increase to ten parcels, up from four. The change will create more buildable lots for new housing statewide.