Indiana Tax Amnesty 2026: A One-Time Chance to Resolve Tax Liabilities

Published on April 10, 2026 by Cheryl Ganim in State Local Tax

Article Summary

• Indiana Tax Amnesty 2026 is a limited-time opportunity to resolve outstanding state tax liabilities.
• Penalties, interest, and collection fees may be waived for eligible taxpayers who complete the program.
• The program applies to tax periods before January 1, 2024 across many state-administered taxes.
• Key deadlines run from July 15 to September 9, 2026 with payment plans extending through June 7, 2027.
• Taxpayers should evaluate amnesty versus voluntary disclosure to determine the most cost-effective option.

Indiana is offering a limited Tax Amnesty 2026 program that gives eligible taxpayers an opportunity to wipe out penalties, interest, and collection fees on older state tax debts. For many individuals and businesses, this may be the most cost‑effective way to resolve long‑standing Indiana tax problems and move forward.

Tax Amnesty 2026 is available to both individuals and businesses that: 

• Owe Indiana taxes administered by the Department of Revenue, and
• Have liabilities for tax periods ending before January 1, 2024.

You don’t need to be an Indiana resident to qualify.

If you’re required to file Indiana tax returns (for example, because you earn income sourced to Indiana or do business in the state) and you have eligible unpaid liabilities, you may be able to participate.

You generally aren’t eligible if you participated in Indiana’s prior statewide amnesty programs in 2005 or 2015. A recent audit or assessment by the Department itself doesn’t disqualify you if you did not participate in an earlier amnesty.

What periods and taxes are covered?

Tax Amnesty 2026 applies to liabilities for tax periods ending before January 1, 2024. In practice, this means most older balances on Indiana‑administered taxes can potentially be addressed through the program.

The amnesty covers state‑administered taxes paid to the Department of Revenue or its motor carrier division, such as:

• Individual income tax
• Corporate income and financial institutions taxes
• Sales and use tax
• Withholding tax
• Various motor carrier and transportation‑related taxes
• Other state‑administered listed taxes
• Local property taxes are not part of this program

The central benefit of Tax Amnesty 2026 is that, if you successfully complete the program, Indiana will:

• Waive related civil penalties
• Waive accrued interest in the eligible liabilities
• Waive collection fees tied to those liabilities

For many taxpayers, penalties, interest, and collection costs make up a large portion of the outstanding balance. Amnesty lets you settle by paying only the underlying tax for eligible periods, which can produce substantial savings compared with continuing in collections or negotiating on a case‑by‑case basis.

There are three key timing milestones to keep in mind:

1. Eligibility tool available: Beginning May 18, 2026, you can use an online eligibility tool in Indiana’s INTIME tax portal to see whether the Department shows you as having amnesty‑eligible liabilities.
2. Amnesty window: The formal amnesty period runs from July 15, 2026, through September 9, 2026. During this window, eligible taxpayers can enroll, pay in full, or set up an amnesty payment plan.
3. Final payment deadline: If you choose a payment plan, all amnesty plan payments must be completed by June 7, 2027. There are no extensions beyond this date.

Failing to pay in full by September 9, 2026, or to fully complete an approved payment plan by June 7, 2027, generally means you lose amnesty benefits, and can be subject to double penalties on the affected liabilities.

During the July 15 – September 9, 2026 window, eligible taxpayers can resolve their amnesty balances in one of two ways:

1. Pay in full by September 9, 2026; or,
2. Enter into an approved payment plan, and complete all payments by June 7, 2027.

How does amnesty compare to voluntary disclosure?

Indiana also offers a separate voluntary disclosure agreement (VDA) program. The VDA program is designed primarily for taxpayers, often out‑of‑state businesses that have never registered or filed for a given tax type, and haven’t been contacted or audited by the Department for that tax.

These businesses also generally don’t have a brick‑and‑mortar presence in Indiana. Voluntary disclosure typically offers a reduced lookback period and full penalty relief, but you still pay all interest, and must file and pay within a relatively short time frame.

By contrast, Tax Amnesty 2026 is a temporary program that applies to already‑due taxes for periods ending before January 1, 2024, and, if you complete the program, can erase penalties, interest, and collection fees and allow payment plans extending into mid‑2027.

For eligible taxpayers who are already on the Department’s radar or have large penalty and interest balances, amnesty often produces a better outcome, while voluntary disclosure may still be preferable for out‑of‑state or not‑yet‑contacted taxpayers with long‑term unfiled exposure where limiting the lookback is more valuable than waiving interest.

Next steps

If you or your business has Indiana tax exposure for periods before 2024, Tax Amnesty 2026 is a one‑time planning opportunity:

• Identify any old Indiana assessments, collection notices, or unfiled periods.
• Determine whether those liabilities fall within the amnesty period and tax types.
• Consider whether you might also qualify for voluntary disclosure on other, not‑yet‑assessed exposure.
• Model the cost of doing nothing (including potential double penalties) versus participating in amnesty, voluntary disclosure, or both.
• Your state and local tax advisor can help review your Indiana footprint, reconcile your accounts with the Department’s records, and model the economics of Tax Amnesty 2026 versus voluntary disclosure so you can choose the path that minimizes risk and total cost.

Have questions about tax amnesty?

If you’d like to better understand whether you qualify for Indiana’s Tax Amnesty 2026 program, or how it compares to voluntary disclosure, contact our team of sales tax compliance pros for a free consultation. We can help you evaluate your composure, model potential savings, and determine the path forward. As always, we’re here to help.

Related resources

In addition to Tax Amnesty 2026, you may want to explore the top 10 sales tax nexus triggers, or get an overview of sales tax compliance and how it varies from state-to-state and even locality-to-locality. You can also watch on demand as leading sales tax compliance pros outline common sales tax compliance pitfalls and how to avoid them. We also have a full library of sales tax compliance resources to help you navigate this challenging and complex area.