Eliminating retirement taxes and cutting spending by 5%: Inside Gov. Braun's budget
Braun is also pushing to phase out the state's tax on retirement income over the next four years. That tax rate is a little over 3% of income form pensions, 401 (k)s and any other retirement savings account. That rate is the same as Indiana's normal income tax. It also does not affect social security, which is untaxed.