Indiana Tax Amnesty 2026: No Penalties, No Interest, No Collection Fees Until September 9

If your business or individual clients have unresolved Indiana tax liabilities, the state’s first tax amnesty program in over a decade is offering an unusually favorable path to resolution, but the window is narrow. For the first time in over a decade, Indiana is offering taxpayers a chance to settle outstanding tax debts without the burden of penalties, interest, or collection fees. The Indiana Department of Revenue (DOR), in partnership with the United Collection Bureau, is launching Tax Amnesty 2026 — a limited-time program designed to bring individuals and businesses back into full tax compliance under highly favorable terms. Here’s what taxpayers should know before the window opens this summer.

Amnesty Window: July 15 – September 9, 2026

The amnesty period is set to run this summer from July 15 through September 9, giving participants an eight-week window to resolve eligible liabilities. To help taxpayers prepare in advance, the DOR plans to launch an online eligibility lookup tool on May 18, 2026. This tool will allow individuals and businesses to verify exactly which of their liabilities qualify before the payment window opens in July.

Eligible Tax Types: Income, Sales, Withholding, and More

The program covers nearly all tax types administered by the DOR. Eligible taxes include:

1. Individual income tax
2. Corporate income tax
3. Sales and use tax (gross retail)
4. Financial institution tax
5. Fuel tax
6. Withholding tax

One notable exclusion is wagering taxes, which are not eligible for amnesty relief.

Coverage Period: Tax Liabilities Ending Before January 1, 2024

Under Senate Bill 243, signed by Governor Mike Braun on March 5, 2026, the program covers unpaid tax liabilities for tax periods ending before January 1, 2024. This represents a one-year extension from the original cutoff of January 1, 2023, that was established in the 2025 budget bill — broadening the pool of taxpayers who can take advantage of the program.

Benefits of Participation

The financial incentives for participating are significant. Taxpayers who come forward and pay their outstanding balances during the amnesty window will receive:

1. Full waiver of penalties that have accumulated on eligible liabilities
2. Full waiver of interest charges
3. Full waiver of collection fees and costs
4. Protection from civil and criminal penalties related to the covered liabilities

For those who cannot pay in full immediately, payment plans are available. Individuals with balances exceeding $100 and businesses with balances exceeding $500 may establish a payment arrangement — but those plans must be paid in full by June 7, 2027, to avoid the reinstatement of double penalties.

Who Qualifies — and Who Is Excluded?

The program is open to both individuals and businesses with qualifying unpaid liabilities. However, there is one important restriction: taxpayers who participated in either of Indiana’s two previous amnesty programs (2005 or 2015) are not eligible for this new round.

In addition, participants must agree to several conditions as part of their amnesty agreement with the DOR. These include relinquishing any right to protest, appeal, or litigate the taxes paid under amnesty, as well as agreeing not to seek refunds for amounts paid through the program. Consistent with the state’s prior amnesties, participants may have to agree to a prohibition on taking part in any future Indiana tax amnesty programs.

Check Your Eligibility Now

To help taxpayers determine in advance whether they have liabilities that qualify, the Indiana Department of Revenue launched an online Amnesty Eligibility Tool on May 18, 2026. The tool is available at www.in.gov/dor/amnesty/ and is integrated into INTIME, the DOR’s online tax portal.

The tool can be used in two ways:

1. Without logging in – Users can run a basic check that will indicate only whether the taxpayer has any amnesty-eligible liabilities on file with the DOR. No specific amounts or tax periods are displayed in this view.
2. Through an INTIME account – Taxpayers who log in (or create a free INTIME account) can see additional detail about their eligible liabilities, including the tax types, periods, and balances that may qualify for amnesty treatment.

What Happens If You Miss the Window

Indiana’s previous amnesty program in 2015 collected $188.5 million, capturing roughly 34% of all eligible liabilities. State estimates suggest the 2026 program could generate between $124 million in revenue for the General Fund, depending on participation levels.

For taxpayers who have fallen behind on their Indiana tax obligations, this program represents a rare and time-limited opportunity to resolve those issues on favorable terms. Once the amnesty window closes, all waived penalties, interest, and fees will be reinstated on any remaining unpaid balances.

For more information or specific tax guidance, please reach out to the KBF SALT Team: George Rendziperis (grendziperis@kbfadvisory.com), Nick McMahon (nmcmahon@kbfadvisory.com) or Andrew Cole (acole@kbfadvisory.com). You can also connect with a KBF professional here.