The Homestead Exemption in Indiana
Who qualifies for the Indiana homestead property tax exemption, how much it saves, and how and when to apply.
Short answer: Indiana's homestead benefits are deductions and a credit for an individual's principal place of residence (true, fixed, permanent home). Indiana Department of Local Government Finance, Memo: Legislation Affecting Deductions, Credits, and Exemptions (May 27, 2026); DLGF 2025 Legislative Overview FAQ (June 18, 2025); Ind. Code §§ 6-1.1-12-37, 6-1.1-12-37.5, 6-1.1-20.6-7.7
| Homestead exemption | 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. Supplemental Homestead Credit: https://www.in.gov/dlgf/files/2025-presentations/250618-FAQ-Webinar-Legislative-Update.pdf |
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| How to apply | 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. Memo: https://www.in.gov/dlgf/files/2026-memos/260527-Cockerill-Memo-Legislation-Affecting-Deductions-Credits-and-Exemptions.pdf |
| Application deadline | 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. Veterans FAQ: https://www.in.gov/dlgf/files/2026-memos/Veterans-Deductions-FAQ_DLGF_08122026-1.pdf |
| Limits on assessment increases | 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. 1% cap example: https://www.in.gov/dlgf/files/2025-presentations/250618-FAQ-Webinar-Legislative-Update.pdf |
More Indiana property tax & homestead exemptions
- Senior, Veteran and Disability Property Tax Relief in Indiana
- Appealing Your Property Tax Assessment in Indiana
- All Indiana property tax & homestead exemptions rules
FAQ
What is the homestead exemption in Indiana?
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.
How do you apply for a homestead exemption in Indiana?
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.
When is the deadline to apply for a homestead exemption in Indiana?
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.
How much can a home's assessed value go up each year in Indiana?
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.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.