Indiana Property Tax Exemptions: Homestead, Senior and Veteran Relief

Indiana's homestead benefits are deductions and a credit for an individual's principal place of residence (true, fixed, permanent home). Under SEA 1-2025, the homestead standard deduction phases down: $48,000 for the 2025 assessment date, $40,000 for 2026, $30,000 for 2027, $20,000 for 2028, $10,000 for 2029, and $0 from 2030 on. The supplemental homestead deduction (a percentage of assessed value after the standard deduction) rises: 40% for taxes payable in 2026, 46% in 2027, 52% in 2028, 57% in 2029, 62% in 2030, and 66.7% from 2031. Homesteads receiving the standard deduction also get a Supplemental Homestead Credit equal to the lesser of 10% of the homestead's tax liability or $300.

Submit the deduction or credit application form (Homestead Deduction, Over 65 Credit and Circuit Breaker, Disabled Veteran, Blind/Disabled Credit, etc.) to the county auditor. Taxpayers do not need to reapply annually; reapplication is needed only if the property is sold or the title changes. Owners must notify the county auditor within 60 days of becoming ineligible for the homestead deduction; failing to do so makes the owner liable for the back taxes plus a 10% civil penalty.

An application filed on or before January 15 applies to the tax bill payable that year (for example, filing by January 15, 2026 put the deduction on the 2025 Pay 2026 bill). For the 100% disabled veteran deduction and the veteran credits, the application must be completed and dated (or postmarked) on or before January 15 of the year the taxes are first due; late applications cannot be applied retroactively.

SEA 1-2025 replaced the former Over 65 deduction with an Over 65 Credit (DLGF's worked example applies a $150 credit). Effective January 1, 2026, the claimant must reside on the property (absence in a nursing home or hospital does not disqualify); once granted it continues without a new filing while the owner remains eligible, and an owner who becomes ineligible must notify the county auditor within 60 days. Separately, the Over 65 Circuit Breaker Credit can limit year-over-year tax increases on the homestead of a qualifying senior (DLGF's example tests whether liability exceeds a 2% increase); income thresholds are published by DLGF each year.

100% disabled veterans deduction (Ind. Code § 6-1.1-12-14, as amended by HEA 1210-2026): beginning with the 2026 assessment date (2026 Pay 2027), a veteran with at least 90 days of service, honorable discharge and a total disability (VA pension certificate or award, or IDVA certificate) who has lived in Indiana at least one year may deduct 100% of the assessed value of the home used as the principal residence, with no assessed-value cap; an unremarried surviving spouse may keep it. Credits: $350 for wartime veterans honorably discharged with a service-connected disability of at least 10%, and $250 for veterans 62 or older with a disability of at least 10% and at least 90 days of service; surviving spouses may qualify. A veteran receiving the 100% deduction cannot also receive these credits. For 2026 Pay 2027, veterans who had the former $14,000 deduction are moved to the $250 credit unless they file for the new 100% deduction.

SEA 1-2025 converted the former blind/disabled deduction to a Blind/Disabled Credit, claimed with the county auditor on the Blind/Disabled Credit form with proof of blindness or disability; it continues without annual refiling while the owner remains eligible.

Indiana caps tax bills rather than assessments: property tax caps (circuit breaker credits) limit a homestead's tax liability to 1% of its gross assessed value, as applied in DLGF's worked example. In addition, SEA 1-2025 created a deduction for residential, long-term care and agricultural property subject to the 2% cap that phases in: 6% of assessed value for 2025 Pay 2026, 12% for 2026 Pay 2027, 19% for 2027 Pay 2028, 25% for 2028 Pay 2029, 30% for 2029 Pay 2030, and 33.4% from 2030 Pay 2031.

File Form 130 (Taxpayer's Notice to Initiate an Appeal) with the local assessing official. After an informal conference with the assessing official, the appeal is forwarded to the county Property Tax Assessment Board of Appeals (PTABOA). If the PTABOA denies it, the taxpayer may appeal to the Indiana Board of Tax Review and then seek review in the Indiana Tax Court.

Property taxes are due twice a year, to the county treasurer: for 2026, May 11 and November 10. A payment made within 30 days after the due date carries a 5% penalty on the unpaid tax (if no back taxes are owed on the property); after 30 days the penalty is 10%.