diff --git a/changelog.d/in-tanf-maximum-benefit.fixed.md b/changelog.d/in-tanf-maximum-benefit.fixed.md
new file mode 100644
index 00000000000..31181cd37fc
--- /dev/null
+++ b/changelog.d/in-tanf-maximum-benefit.fixed.md
@@ -0,0 +1 @@
+Correct Indiana TANF benefit payments to use the IC 12-14-2-5 maximum benefit and add the post-2025 gross/net income eligibility screens.
diff --git a/policyengine_us/parameters/gov/states/in/fssa/tanf/amount_of_assistance/additional_member_amount.yaml b/policyengine_us/parameters/gov/states/in/fssa/tanf/amount_of_assistance/additional_member_amount.yaml
new file mode 100644
index 00000000000..aafed0669d3
--- /dev/null
+++ b/policyengine_us/parameters/gov/states/in/fssa/tanf/amount_of_assistance/additional_member_amount.yaml
@@ -0,0 +1,15 @@
+description: Indiana provides this additional amount for each assistance unit member above the maximum benefit table size under the Temporary Assistance for Needy Families program.
+
+values:
+  1997-10-01: 0
+  2024-07-01: 104
+
+metadata:
+  unit: currency-USD
+  period: month
+  label: Indiana TANF maximum benefit additional member amount
+  reference:
+    - title: IC 12-14-2-5 (amount of assistance; payment made; maximum amounts)
+      href: https://iga.in.gov/laws/2025/ic/titles/12/#12-14-2-5
+    - title: FSSA DFR - About TANF
+      href: https://www.in.gov/fssa/dfr/tanf-cash-assistance/about-tanf/
diff --git a/policyengine_us/parameters/gov/states/in/fssa/tanf/amount_of_assistance/amount.yaml b/policyengine_us/parameters/gov/states/in/fssa/tanf/amount_of_assistance/amount.yaml
new file mode 100644
index 00000000000..bff77a35a50
--- /dev/null
+++ b/policyengine_us/parameters/gov/states/in/fssa/tanf/amount_of_assistance/amount.yaml
@@ -0,0 +1,62 @@
+description: Indiana provides this amount as the maximum benefit under the Temporary Assistance for Needy Families program.
+
+1:
+  1997-10-01: 139
+  2023-07-01: 155
+  2024-07-01: 248
+2:
+  1997-10-01: 229
+  2023-07-01: 255
+  2024-07-01: 409
+3:
+  1997-10-01: 288
+  2023-07-01: 320
+  2024-07-01: 513
+4:
+  1997-10-01: 346
+  2023-07-01: 385
+  2024-07-01: 617
+5:
+  1997-10-01: 405
+  2023-07-01: 450
+  2024-07-01: 721
+6:
+  1997-10-01: 463
+  2023-07-01: 515
+  2024-07-01: 825
+7:
+  1997-10-01: 522
+  2023-07-01: 580
+  2024-07-01: 929
+8:
+  1997-10-01: 580
+  2023-07-01: 645
+  2024-07-01: 1_033
+9:
+  1997-10-01: 639
+  2023-07-01: 710
+  2024-07-01: 1_137
+10:
+  1997-10-01: 697
+  2023-07-01: 775
+  2024-07-01: 1_241
+
+metadata:
+  unit: currency-USD
+  period: month
+  breakdown:
+    - range(1, 11)
+  breakdown_labels:
+    - Assistance unit size
+  label: Indiana TANF maximum benefit amount
+  reference:
+    - title: IC 12-14-2-5 (amount of assistance; payment made; maximum amounts)
+      href: https://iga.in.gov/laws/2025/ic/titles/12/#12-14-2-5
+    - title: 470 IAC 10.3-4-3(a)(1) (corroborates pre-2024 amounts equal to standard of need)
+      href: https://iar.iga.in.gov/code/2026/470/10.3#470-10.3-4-3
+    - title: FSSA SNAP/TANF Transmittal 2024 (Section 3050.10.00, maximum benefits effective 7/1/2024)
+      href: https://www.in.gov/fssa/dfr/files/SNAP-TANF-Transmittal2024.pdf
+    - title: FSSA SNAP/TANF Program Policy Manual, Section 3050.10.00
+      href: https://www.in.gov/fssa/dfr/files/3000.pdf#page=7
+    - title: CBPP TANF benefit levels (corroborates 2023-07-01 increase)
+      href: https://www.cbpp.org/research/income-security/continued-increases-in-tanf-benefit-levels-are-critical-to-helping
diff --git a/policyengine_us/parameters/gov/states/in/fssa/tanf/amount_of_assistance/max_table_size.yaml b/policyengine_us/parameters/gov/states/in/fssa/tanf/amount_of_assistance/max_table_size.yaml
new file mode 100644
index 00000000000..3e825112811
--- /dev/null
+++ b/policyengine_us/parameters/gov/states/in/fssa/tanf/amount_of_assistance/max_table_size.yaml
@@ -0,0 +1,14 @@
+description: Indiana sets this as the largest assistance unit size in the maximum benefit table under the Temporary Assistance for Needy Families program.
+
+values:
+  1997-10-01: 10
+
+metadata:
+  unit: person
+  period: year
+  label: Indiana TANF maximum benefit table size
+  reference:
+    - title: IC 12-14-2-5 (amount of assistance; payment made; maximum amounts)
+      href: https://iga.in.gov/laws/2025/ic/titles/12/#12-14-2-5
+    - title: 470 IAC 10.3-4-3(a)(1)
+      href: https://iar.iga.in.gov/code/2026/470/10.3#470-10.3-4-3
diff --git a/policyengine_us/parameters/gov/states/in/fssa/tanf/eligibility/initial/gross_income/fpg_rate.yaml b/policyengine_us/parameters/gov/states/in/fssa/tanf/eligibility/initial/gross_income/fpg_rate.yaml
new file mode 100644
index 00000000000..af7c2c4119d
--- /dev/null
+++ b/policyengine_us/parameters/gov/states/in/fssa/tanf/eligibility/initial/gross_income/fpg_rate.yaml
@@ -0,0 +1,16 @@
+description: Indiana limits initial applicants' gross income to this share of the federal poverty guideline under the Temporary Assistance for Needy Families program.
+
+values:
+  1997-10-01: .inf  # No gross income screen before 2025-07-01 (standard of need governs)
+  2025-07-01: 0.35
+  2027-07-01: 0.5
+
+metadata:
+  unit: /1
+  period: month
+  label: Indiana TANF initial eligibility gross income FPG rate
+  reference:
+    - title: IC 12-14-1-1.7(b)-(c) (35% FPL through June 30, 2027; 50% FPL after)
+      href: https://iga.in.gov/laws/2025/ic/titles/12/#12-14-1-1.7
+    - title: FSSA DFR Chapter 3000, Section 3010.15.00 (gross income standard)
+      href: https://www.in.gov/fssa/dfr/files/3000.pdf#page=4
diff --git a/policyengine_us/parameters/gov/states/in/fssa/tanf/eligibility/initial/net_income/maximum_grant_rate.yaml b/policyengine_us/parameters/gov/states/in/fssa/tanf/eligibility/initial/net_income/maximum_grant_rate.yaml
new file mode 100644
index 00000000000..212e7685308
--- /dev/null
+++ b/policyengine_us/parameters/gov/states/in/fssa/tanf/eligibility/initial/net_income/maximum_grant_rate.yaml
@@ -0,0 +1,13 @@
+description: Indiana limits initial applicants' countable net income to this share of the maximum benefit under the Temporary Assistance for Needy Families program.
+
+values:
+  1997-10-01: 0  # Standard of need governs initial net income before 2025-07-01
+  2025-07-01: 1
+
+metadata:
+  unit: /1
+  period: month
+  label: Indiana TANF initial eligibility net income maximum benefit rate
+  reference:
+    - title: FSSA DFR Chapter 3000, Section 3010.15.00 (net income standard equal to the maximum grant)
+      href: https://www.in.gov/fssa/dfr/files/3000.pdf#page=4
diff --git a/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/benefit/in_tanf_maximum_benefit.yaml b/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/benefit/in_tanf_maximum_benefit.yaml
new file mode 100644
index 00000000000..9d0ae738263
--- /dev/null
+++ b/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/benefit/in_tanf_maximum_benefit.yaml
@@ -0,0 +1,79 @@
+# Tests for in_tanf_maximum_benefit (amount of assistance, IC 12-14-2-5)
+# Maximum benefit by assistance unit size across the 2023 and 2024 increases.
+
+- name: Family of 2 pre-2023 amount
+  period: 2022-01
+  absolute_error_margin: 0.1
+  input:
+    spm_unit_size: 2
+    state_code: IN
+  output:
+    in_tanf_maximum_benefit: 229
+
+- name: Family of 2 January 2024 still pre-July-2024 amount
+  period: 2024-01
+  absolute_error_margin: 0.1
+  input:
+    spm_unit_size: 2
+    state_code: IN
+  output:
+    in_tanf_maximum_benefit: 255
+    # 2023-07-01 amount; the 2024-07-01 increase is not yet effective
+
+- name: Family of 2 January 2025 increased amount
+  period: 2025-01
+  absolute_error_margin: 0.1
+  input:
+    spm_unit_size: 2
+    state_code: IN
+  output:
+    in_tanf_maximum_benefit: 409
+    # 2024-07-01 amount (IC 12-14-2-5)
+
+- name: Family of 2 January 2026 amount
+  period: 2026-01
+  absolute_error_margin: 0.1
+  input:
+    spm_unit_size: 2
+    state_code: IN
+  output:
+    in_tanf_maximum_benefit: 409
+
+- name: Family of 3 January 2025 amount
+  period: 2025-01
+  absolute_error_margin: 0.1
+  input:
+    spm_unit_size: 3
+    state_code: IN
+  output:
+    in_tanf_maximum_benefit: 513
+
+- name: Family of 10 January 2025 amount
+  period: 2025-01
+  absolute_error_margin: 0.1
+  input:
+    spm_unit_size: 10
+    state_code: IN
+  output:
+    in_tanf_maximum_benefit: 1_241
+
+- name: Family of 11 January 2025 adds one additional member increment
+  period: 2025-01
+  absolute_error_margin: 0.1
+  input:
+    spm_unit_size: 11
+    state_code: IN
+  output:
+    in_tanf_maximum_benefit: 1_345
+    # Size-10 amount ($1,241) + $104 for the 11th member
+
+- name: Family of 11 January 2024 has no additional member increment
+  period: 2024-01
+  absolute_error_margin: 0.1
+  input:
+    spm_unit_size: 11
+    state_code: IN
+  output:
+    in_tanf_maximum_benefit: 775
+    # Before 2024-07-01 the additional member amount is $0, so size 11 is
+    # capped at the size-10 standard-of-need amount ($775)
diff --git a/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/edge_cases.yaml b/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/edge_cases.yaml
index 5e216aaa486..2ce04de13a3 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/edge_cases.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/edge_cases.yaml
@@ -138,7 +138,7 @@
   period: 2024-01
   input:
     in_tanf_eligible: true
-    in_tanf_payment_standard: 320
+    in_tanf_maximum_benefit: 320
     in_tanf_countable_income_for_payment: 319
     state_code: IN
   output:
@@ -164,4 +164,4 @@
         state_code: IN
   output:
     in_tanf: 255
-    # Capped at payment standard for family of 2 ($255), not inflated
+    # Capped at the maximum benefit for family of 2 ($255), not inflated
diff --git a/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/eligibility/in_tanf_countable_income_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/eligibility/in_tanf_countable_income_eligible.yaml
index 84703243a4a..ca7b7ca3303 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/eligibility/in_tanf_countable_income_eligible.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/eligibility/in_tanf_countable_income_eligible.yaml
@@ -164,3 +164,148 @@
     in_tanf_countable_income_for_eligibility: 586.7
     in_tanf_countable_income_eligible: true
     # Countable ($586.70) < 100% FPL for 3 (~$1,988/mo) -> eligible
+
+# Post-2025 initial eligibility (IC 12-14-1-1.7; FSSA 3010.15.00).
+# Initial applicants must have countable net income below the maximum grant
+# and gross income at or below 35% FPG (50% from 2027-07-01). For Indiana the
+# net (maximum grant) standard binds before the looser 35% FPG gross screen.
+
+- name: Applicant family of 3 just below the maximum grant net standard in 2026
+  period: 2026-01
+  input:
+    people:
+      person1:
+        age: 30
+        tanf_gross_unearned_income: 512
+      person2:
+        age: 10
+      person3:
+        age: 8
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+        is_tanf_enrolled: false
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: IN
+  output:
+    in_tanf_countable_income_for_eligibility: 512
+    in_tanf_countable_income_eligible: true
+    # Net ($512) < maximum grant ($513); gross ($512) <= 35% FPG ($777) -> eligible
+
+- name: Applicant family of 3 at the maximum grant net standard in 2026
+  period: 2026-01
+  input:
+    people:
+      person1:
+        age: 30
+        tanf_gross_unearned_income: 513
+      person2:
+        age: 10
+      person3:
+        age: 8
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+        is_tanf_enrolled: false
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: IN
+  output:
+    in_tanf_countable_income_for_eligibility: 513
+    in_tanf_countable_income_eligible: false
+    # Net ($513) >= maximum grant ($513) -> not eligible (strict less-than)
+
+- name: Applicant family of 3 below the maximum grant net standard in 2028
+  period: 2028-01
+  input:
+    people:
+      person1:
+        age: 30
+        tanf_gross_unearned_income: 500
+      person2:
+        age: 10
+      person3:
+        age: 8
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+        is_tanf_enrolled: false
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: IN
+  output:
+    in_tanf_countable_income_eligible: true
+    # Net ($500) < maximum grant ($513); gross ($500) <= 50% FPG ($1,165) -> eligible
+
+- name: Applicant family of 3 high earner fails both 2026 screens
+  period: 2026-01
+  input:
+    people:
+      person1:
+        age: 30
+        tanf_gross_earned_income: 3_000
+      person2:
+        age: 10
+      person3:
+        age: 8
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+        is_tanf_enrolled: false
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: IN
+  output:
+    in_tanf_countable_income_eligible: false
+    # Net ($2,910 = $3,000 - $90) >= maximum grant and gross ($3,000) > 35% FPG
+
+- name: Enrolled family of 3 below 100% FPG in 2026 remains eligible
+  period: 2026-01
+  input:
+    people:
+      person1:
+        age: 30
+        tanf_gross_unearned_income: 2_000
+      person2:
+        age: 10
+      person3:
+        age: 8
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+        is_tanf_enrolled: true
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: IN
+  output:
+    in_tanf_countable_income_eligible: true
+    # Enrolled: countable ($2,000) < 100% FPG for 3 ($2,220.83) -> eligible
+
+- name: Enrolled family of 3 above 100% FPG in 2026 loses eligibility
+  period: 2026-01
+  input:
+    people:
+      person1:
+        age: 30
+        tanf_gross_unearned_income: 2_300
+      person2:
+        age: 10
+      person3:
+        age: 8
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+        is_tanf_enrolled: true
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: IN
+  output:
+    in_tanf_countable_income_eligible: false
+    # Enrolled: countable ($2,300) >= 100% FPG for 3 ($2,220.83) -> not eligible
diff --git a/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/eligibility/in_tanf_payment_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/eligibility/in_tanf_payment_eligible.yaml
index 939290a0d4f..0ccb073e152 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/eligibility/in_tanf_payment_eligible.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/eligibility/in_tanf_payment_eligible.yaml
@@ -1,6 +1,6 @@
 # Tests for in_tanf_payment_eligible
 # Uses payment disregards: 75% earned income (only 25% counts)
-# Compares to payment standard
+# Compares to the maximum benefit (IC 12-14-2-5)
 
 - name: Family of 3 with zero countable income - eligible
   period: 2024-01
@@ -10,9 +10,9 @@
     state_code: IN
   output:
     in_tanf_payment_eligible: true
-    # Countable income ($0) < standard of need ($320) → eligible
+    # Countable income ($0) < maximum benefit ($320) → eligible
 
-- name: Family of 3 with income below standard of need - eligible
+- name: Family of 3 with income below maximum benefit - eligible
   period: 2024-01
   input:
     spm_unit_size: 3
@@ -20,9 +20,9 @@
     state_code: IN
   output:
     in_tanf_payment_eligible: true
-    # Countable income ($300) < standard of need ($320) → eligible
+    # Countable income ($300) < maximum benefit ($320) → eligible
 
-- name: Family of 3 with income at standard of need - not eligible
+- name: Family of 3 with income at maximum benefit - not eligible
   period: 2024-01
   input:
     spm_unit_size: 3
@@ -30,9 +30,9 @@
     state_code: IN
   output:
     in_tanf_payment_eligible: false
-    # Countable income ($320) >= standard of need ($320) → not eligible
+    # Countable income ($320) >= maximum benefit ($320) → not eligible
 
-- name: Family of 3 with income above standard of need - not eligible
+- name: Family of 3 with income above maximum benefit - not eligible
   period: 2024-01
   input:
     spm_unit_size: 3
@@ -40,9 +40,9 @@
     state_code: IN
   output:
     in_tanf_payment_eligible: false
-    # Countable income ($400) > standard of need ($320) → not eligible
+    # Countable income ($400) > maximum benefit ($320) → not eligible
 
-- name: Family of 1 below standard of need - eligible
+- name: Family of 1 below maximum benefit - eligible
   period: 2024-01
   input:
     spm_unit_size: 1
@@ -50,9 +50,9 @@
     state_code: IN
   output:
     in_tanf_payment_eligible: true
-    # Countable income ($150) < standard of need ($155) → eligible
+    # Countable income ($150) < maximum benefit ($155) → eligible
 
-- name: Family of 2 below standard of need - eligible
+- name: Family of 2 below maximum benefit - eligible
   period: 2024-01
   input:
     spm_unit_size: 2
@@ -60,4 +60,25 @@
     state_code: IN
   output:
     in_tanf_payment_eligible: true
-    # Countable income ($250) < standard of need ($255) → eligible
+    # Countable income ($250) < maximum benefit ($255) → eligible
+
+- name: Family of 3 with income above old standard of need now eligible in 2025
+  period: 2025-01
+  input:
+    spm_unit_size: 3
+    in_tanf_countable_income_for_payment: 400
+    state_code: IN
+  output:
+    in_tanf_payment_eligible: true
+    # Countable income ($400) < 2024-07-01 maximum benefit ($513) → eligible,
+    # whereas $400 exceeded the standard of need ($320)
+
+- name: Family of 3 with income at 2025 maximum benefit - not eligible
+  period: 2025-01
+  input:
+    spm_unit_size: 3
+    in_tanf_countable_income_for_payment: 513
+    state_code: IN
+  output:
+    in_tanf_payment_eligible: false
+    # Countable income ($513) >= maximum benefit ($513) → not eligible
diff --git a/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/in_tanf.yaml b/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/in_tanf.yaml
index 49adcce45bd..3dcf459c415 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/in_tanf.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/in_tanf.yaml
@@ -2,7 +2,7 @@
   period: 2024-01
   input:
     in_tanf_eligible: true
-    in_tanf_payment_standard: 513
+    in_tanf_maximum_benefit: 513
     in_tanf_countable_income_for_payment: 0
     state_code: IN
   output:
@@ -13,7 +13,7 @@
   period: 2024-01
   input:
     in_tanf_eligible: true
-    in_tanf_payment_standard: 513
+    in_tanf_maximum_benefit: 513
     in_tanf_countable_income_for_payment: 200
     state_code: IN
   output:
@@ -24,7 +24,7 @@
   period: 2024-01
   input:
     in_tanf_eligible: true
-    in_tanf_payment_standard: 409
+    in_tanf_maximum_benefit: 409
     in_tanf_countable_income_for_payment: 100
     state_code: IN
   output:
@@ -35,30 +35,95 @@
   period: 2024-01
   input:
     in_tanf_eligible: false
-    in_tanf_payment_standard: 513
+    in_tanf_maximum_benefit: 513
     in_tanf_countable_income_for_payment: 100
     state_code: IN
   output:
     in_tanf: 0
 
-- name: Family with countable income equal to payment standard
+- name: Family with countable income equal to maximum benefit
   period: 2024-01
   input:
     in_tanf_eligible: true
-    in_tanf_payment_standard: 513
+    in_tanf_maximum_benefit: 513
     in_tanf_countable_income_for_payment: 513
     state_code: IN
   output:
     in_tanf: 0
     # Max benefit ($513) - countable income ($513) = $0
 
-- name: Family with countable income exceeding payment standard
+- name: Family with countable income exceeding maximum benefit
   period: 2024-01
   input:
     in_tanf_eligible: true
-    in_tanf_payment_standard: 513
+    in_tanf_maximum_benefit: 513
     in_tanf_countable_income_for_payment: 600
     state_code: IN
   output:
     in_tanf: 0
     # max(513 - 600, 0) = 0
+
+- name: Family of two, adult and child, no income, no SSI, January 2026.
+  period: 2026-01
+  absolute_error_margin: 0.1
+  input:
+    people:
+      person1:
+        age: 30
+        employment_income: 0
+        ssi: 0
+      person2:
+        age: 5
+        employment_income: 0
+        ssi: 0
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: IN
+  output:
+    in_tanf: 409
+    # 2024-07-01 maximum benefit for a family of 2 (IC 12-14-2-5)
+
+- name: Family of two, no income, January 2024 still pays pre-July-2024 amount.
+  period: 2024-01
+  absolute_error_margin: 0.1
+  input:
+    people:
+      person1:
+        age: 30
+      person2:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: IN
+  output:
+    in_tanf: 255
+    # January 2024 is before the 2024-07-01 increase, so the maximum benefit
+    # is still the 2023-07-01 amount ($255) for a family of 2.
+
+- name: Family of two, no income, January 2025 pays the increased amount.
+  period: 2025-01
+  absolute_error_margin: 0.1
+  input:
+    people:
+      person1:
+        age: 30
+      person2:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: IN
+  output:
+    in_tanf: 409
+    # 2024-07-01 maximum benefit for a family of 2 ($409)
diff --git a/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/income/in_tanf_gross_income.yaml b/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/income/in_tanf_gross_income.yaml
new file mode 100644
index 00000000000..6f6d0f1d630
--- /dev/null
+++ b/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/income/in_tanf_gross_income.yaml
@@ -0,0 +1,94 @@
+# Tests for in_tanf_gross_income
+# Sum of gross earned and gross unearned income (no disregards), used by the
+# post-2025 initial gross income screen.
+
+- name: No income
+  period: 2024-01
+  input:
+    people:
+      person1:
+        tanf_gross_earned_income: 0
+        tanf_gross_unearned_income: 0
+    spm_units:
+      spm_unit:
+        members: [person1]
+    households:
+      household:
+        members: [person1]
+        state_code: IN
+  output:
+    in_tanf_gross_income: 0
+
+- name: Earned income only
+  period: 2024-01
+  input:
+    people:
+      person1:
+        tanf_gross_earned_income: 400
+        tanf_gross_unearned_income: 0
+    spm_units:
+      spm_unit:
+        members: [person1]
+    households:
+      household:
+        members: [person1]
+        state_code: IN
+  output:
+    in_tanf_gross_income: 400
+    # Gross income has no disregards applied
+
+- name: Unearned income only
+  period: 2024-01
+  input:
+    people:
+      person1:
+        tanf_gross_earned_income: 0
+        tanf_gross_unearned_income: 300
+    spm_units:
+      spm_unit:
+        members: [person1]
+    households:
+      household:
+        members: [person1]
+        state_code: IN
+  output:
+    in_tanf_gross_income: 300
+
+- name: Both earned and unearned income
+  period: 2024-01
+  input:
+    people:
+      person1:
+        tanf_gross_earned_income: 500
+        tanf_gross_unearned_income: 200
+    spm_units:
+      spm_unit:
+        members: [person1]
+    households:
+      household:
+        members: [person1]
+        state_code: IN
+  output:
+    in_tanf_gross_income: 700
+    # $500 earned + $200 unearned = $700
+
+- name: Multiple people in unit
+  period: 2024-01
+  input:
+    people:
+      person1:
+        tanf_gross_earned_income: 200
+      person2:
+        tanf_gross_unearned_income: 100
+      person3:
+        age: 8
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: IN
+  output:
+    in_tanf_gross_income: 300
+    # $200 (person1 earned) + $100 (person2 unearned) = $300
diff --git a/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/integration.yaml b/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/integration.yaml
index 7757ddda307..9d5dbf85f0e 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/integration.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/in/fssa/tanf/integration.yaml
@@ -366,3 +366,68 @@
     in_tanf_eligible: true
     in_tanf: 145
     # $320 - $175 = $145
+
+- name: Case 11, family of 3 no income receives 2024-07-01 maximum benefit in 2026.
+  period: 2026-01
+  input:
+    people:
+      person1:
+        age: 30
+      person2:
+        age: 10
+      person3:
+        age: 8
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+        is_tanf_enrolled: false
+        spm_unit_cash_assets: 500
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: IN
+  output:
+    spm_unit_size: 3
+    in_tanf_payment_standard: 320
+    # Standard of need (eligibility table) is unchanged
+    in_tanf_maximum_benefit: 513
+    # Family of 3 maximum benefit (IC 12-14-2-5, effective 2024-07-01)
+    in_tanf_countable_income_for_payment: 0
+    in_tanf_countable_income_eligible: true
+    in_tanf_payment_eligible: true
+    in_tanf_eligible: true
+    in_tanf: 513
+    # Maximum benefit ($513) - countable income ($0) = $513
+
+- name: Case 12, applicant income above old standard of need now receives a benefit in 2026.
+  period: 2026-01
+  input:
+    people:
+      person1:
+        age: 30
+        tanf_gross_unearned_income: 400
+      person2:
+        age: 10
+      person3:
+        age: 8
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+        is_tanf_enrolled: false
+        spm_unit_cash_assets: 500
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: IN
+  output:
+    spm_unit_size: 3
+    in_tanf_maximum_benefit: 513
+    in_tanf_countable_income_for_payment: 400
+    in_tanf_countable_income_for_eligibility: 400
+    in_tanf_countable_income_eligible: true
+    # Net ($400) < maximum grant ($513); gross ($400) <= 35% FPG -> eligible
+    in_tanf_payment_eligible: true
+    # $400 < maximum benefit ($513); above the old standard of need ($320)
+    in_tanf_eligible: true
+    in_tanf: 113
+    # Maximum benefit ($513) - countable income ($400) = $113
diff --git a/policyengine_us/variables/gov/states/in/fssa/tanf/eligibility/in_tanf_countable_income_eligible.py b/policyengine_us/variables/gov/states/in/fssa/tanf/eligibility/in_tanf_countable_income_eligible.py
index 88ffa64028b..2456549bfa6 100644
--- a/policyengine_us/variables/gov/states/in/fssa/tanf/eligibility/in_tanf_countable_income_eligible.py
+++ b/policyengine_us/variables/gov/states/in/fssa/tanf/eligibility/in_tanf_countable_income_eligible.py
@@ -9,21 +9,35 @@ class in_tanf_countable_income_eligible(Variable):
     reference = (
         "https://iar.iga.in.gov/code/2026/470/10.3#470-10.3-4-1",
         "https://iga.in.gov/laws/2025/ic/titles/12/#12-14-1-1.7",
+        "https://www.in.gov/fssa/dfr/files/3000.pdf#page=4",
+        "https://www.in.gov/fssa/dfr/files/3000.pdf#page=5",
     )
     defined_for = StateCode.IN
 
     def formula(spm_unit, period, parameters):
-        # Initial: standard of need; Continuing: FPL * rate
-        p = parameters(period).gov.states["in"].fssa.tanf
+        p = parameters(period).gov.states["in"].fssa.tanf.eligibility
         countable = spm_unit("in_tanf_countable_income_for_eligibility", period)
-        is_enrolled = spm_unit("is_tanf_enrolled", period)
-
         fpg = spm_unit("tanf_fpg", period)
-        continuing_threshold = fpg * p.eligibility.continuing.fpg_rate
 
-        threshold = where(
-            is_enrolled,
-            continuing_threshold,
-            spm_unit("in_tanf_payment_standard", period),
+        # Continuing/enrolled recipients: countable net income below 100% FPG
+        # (470 IAC 10.3-4-1; FSSA 3010.15.05).
+        continuing_eligible = countable < fpg * p.continuing.fpg_rate
+
+        # Initial applicants. The net income standard is the standard of need
+        # before 2025-07-01 (maximum grant rate of 0) and the maximum grant
+        # from 2025-07-01 (FSSA 3010.15.00). From 2025-07-01 there is also a
+        # gross income screen at 35% FPG, rising to 50% after June 30, 2027
+        # (IC 12-14-1-1.7); before then the screen is inactive (infinite rate).
+        standard_of_need = spm_unit("in_tanf_payment_standard", period)
+        maximum_grant = spm_unit("in_tanf_maximum_benefit", period)
+        grant_rate = p.initial.net_income.maximum_grant_rate
+        net_threshold = where(
+            grant_rate > 0, maximum_grant * grant_rate, standard_of_need
         )
-        return countable < threshold
+        gross_income = spm_unit("in_tanf_gross_income", period)
+        initial_eligible = (countable < net_threshold) & (
+            gross_income <= fpg * p.initial.gross_income.fpg_rate
+        )
+
+        is_enrolled = spm_unit("is_tanf_enrolled", period)
+        return where(is_enrolled, continuing_eligible, initial_eligible)
diff --git a/policyengine_us/variables/gov/states/in/fssa/tanf/eligibility/in_tanf_payment_eligible.py b/policyengine_us/variables/gov/states/in/fssa/tanf/eligibility/in_tanf_payment_eligible.py
index 273a61a33c5..e18c2de0162 100644
--- a/policyengine_us/variables/gov/states/in/fssa/tanf/eligibility/in_tanf_payment_eligible.py
+++ b/policyengine_us/variables/gov/states/in/fssa/tanf/eligibility/in_tanf_payment_eligible.py
@@ -7,12 +7,12 @@ class in_tanf_payment_eligible(Variable):
     label = "Indiana TANF payment eligible"
     definition_period = MONTH
     reference = (
-        "https://iar.iga.in.gov/code/2026/470/10.3#470-10.3-4-3",
         "https://iga.in.gov/laws/2025/ic/titles/12/#12-14-2-5",
+        "https://www.in.gov/fssa/dfr/files/3000.pdf#page=7",
     )
     defined_for = StateCode.IN
 
     def formula(spm_unit, period, parameters):
         countable = spm_unit("in_tanf_countable_income_for_payment", period)
-        payment_standard = spm_unit("in_tanf_payment_standard", period)
-        return countable < payment_standard
+        maximum_benefit = spm_unit("in_tanf_maximum_benefit", period)
+        return countable < maximum_benefit
diff --git a/policyengine_us/variables/gov/states/in/fssa/tanf/in_tanf.py b/policyengine_us/variables/gov/states/in/fssa/tanf/in_tanf.py
index 55df3dda1f9..15692230c87 100644
--- a/policyengine_us/variables/gov/states/in/fssa/tanf/in_tanf.py
+++ b/policyengine_us/variables/gov/states/in/fssa/tanf/in_tanf.py
@@ -14,7 +14,9 @@ class in_tanf(Variable):
     defined_for = "in_tanf_eligible"
 
     def formula(spm_unit, period, parameters):
-        payment_standard = spm_unit("in_tanf_payment_standard", period)
+        maximum_benefit = spm_unit("in_tanf_maximum_benefit", period)
         countable_income = spm_unit("in_tanf_countable_income_for_payment", period)
-        benefit = max_(payment_standard - countable_income, 0)
-        return min_(benefit, payment_standard)
+        benefit = max_(maximum_benefit - countable_income, 0)
+        # Cap at the maximum benefit so negative countable income cannot
+        # inflate the grant above the maximum.
+        return min_(benefit, maximum_benefit)
diff --git a/policyengine_us/variables/gov/states/in/fssa/tanf/in_tanf_maximum_benefit.py b/policyengine_us/variables/gov/states/in/fssa/tanf/in_tanf_maximum_benefit.py
new file mode 100644
index 00000000000..b18232f15f5
--- /dev/null
+++ b/policyengine_us/variables/gov/states/in/fssa/tanf/in_tanf_maximum_benefit.py
@@ -0,0 +1,22 @@
+from policyengine_us.model_api import *
+
+
+class in_tanf_maximum_benefit(Variable):
+    value_type = float
+    entity = SPMUnit
+    label = "Indiana TANF maximum benefit amount"
+    unit = USD
+    definition_period = MONTH
+    reference = (
+        "https://iga.in.gov/laws/2025/ic/titles/12/#12-14-2-5",
+        "https://www.in.gov/fssa/dfr/files/SNAP-TANF-Transmittal2024.pdf",
+        "https://www.in.gov/fssa/dfr/files/3000.pdf#page=7",
+    )
+    defined_for = StateCode.IN
+
+    def formula(spm_unit, period, parameters):
+        p = parameters(period).gov.states["in"].fssa.tanf.amount_of_assistance
+        size = spm_unit("spm_unit_size", period.this_year)
+        capped_size = min_(size, p.max_table_size)
+        additional_members = max_(size - p.max_table_size, 0)
+        return p.amount[capped_size] + additional_members * p.additional_member_amount
diff --git a/policyengine_us/variables/gov/states/in/fssa/tanf/in_tanf_payment_standard.py b/policyengine_us/variables/gov/states/in/fssa/tanf/in_tanf_payment_standard.py
index 61f745d799d..0d54def2b36 100644
--- a/policyengine_us/variables/gov/states/in/fssa/tanf/in_tanf_payment_standard.py
+++ b/policyengine_us/variables/gov/states/in/fssa/tanf/in_tanf_payment_standard.py
@@ -15,5 +15,6 @@ class in_tanf_payment_standard(Variable):
 
     def formula(spm_unit, period, parameters):
         p = parameters(period).gov.states["in"].fssa.tanf.standard_of_need
-        capped_size = min_(spm_unit("spm_unit_size", period), p.max_unit_size)
+        size = spm_unit("spm_unit_size", period.this_year)
+        capped_size = min_(size, p.max_unit_size)
         return p.amount[capped_size]
diff --git a/policyengine_us/variables/gov/states/in/fssa/tanf/income/in_tanf_gross_income.py b/policyengine_us/variables/gov/states/in/fssa/tanf/income/in_tanf_gross_income.py
new file mode 100644
index 00000000000..282d3e4e129
--- /dev/null
+++ b/policyengine_us/variables/gov/states/in/fssa/tanf/income/in_tanf_gross_income.py
@@ -0,0 +1,13 @@
+from policyengine_us.model_api import *
+
+
+class in_tanf_gross_income(Variable):
+    value_type = float
+    entity = SPMUnit
+    label = "Indiana TANF gross income"
+    unit = USD
+    definition_period = MONTH
+    reference = "https://iga.in.gov/laws/2025/ic/titles/12/#12-14-1-1.7"
+    defined_for = StateCode.IN
+
+    adds = ["tanf_gross_earned_income", "tanf_gross_unearned_income"]