Indiana Property Tax Exemptions 2026: Homestead, Senior, Veteran & Disability

Indiana (IN) homeowners have several ways to legally reduce their property tax bill — homestead reductions, senior credits, veteran exemptions, and disability programs. This page lists every Indiana property tax exemption available in 2026, who qualifies, dollar amounts, and how to apply.

All Indiana property tax exemptions at a glance

Estimated savings use Indiana's effective property tax rate of 0.74% on the median home value of $201,600. Your actual savings depend on your county assessor's millage and how exemptions are applied to assessed (vs. market) value.

The 1-2-3 Circuit Breaker Caps

Indiana's Constitution (Article 10 §1, added by 2010 amendment) caps property tax at a percentage of gross assessed value:

• 1% (homestead): owner-occupied primary residence — tax cannot exceed 1% of gross assessed value
• 2% (other residential and agricultural): rental residential, long-term care, and agricultural land
• 3% (non-residential and long-term care): commercial, industrial, vacant, and other

Why it matters

The caps are constitutional — they cannot be overridden by local tax rate increases or voter-approved levies. If the combined local rate implies a homestead tax above 1%, the excess is simply not collected. This is one of the strongest constitutional tax caps in the country.

New 2026 Credits and the Over-65 Circuit Breaker

Automatic 10% Homestead Credit (NEW 2026)

Starting tax year 2026, all qualifying homesteads receive an automatic 10% credit on the property tax bill, up to a maximum of $300. Applied automatically by the county auditor — no application needed.

Over-65 Circuit Breaker Credit

This is separate from the 1% circuit breaker. For qualifying seniors, the Over-65 Circuit Breaker caps annual property tax increase at 2% per year. Eligibility is stricter:

• Age 65+ homeowner
• Income cap: $30,000 single / $40,000 joint
• Homestead assessed value under $200,000
• Owned and occupied at least one year

This is one of the most restrictive senior benefits in the country on income, but provides permanent protection from large tax increases once qualified.

Disabled Veteran Credit

Separate from the deduction, some Indiana counties offer additional credits for 100% service-connected disabled veterans.

Frequently Asked Questions

What is Indiana's 10% homestead credit in 2026?

A new automatic 10% property tax credit on the primary residence tax bill, up to a maximum of $300. Applied by the county auditor without application. Launched for tax year 2026 and stacks on top of the existing Standard ($48,000) and Supplemental (40%) Homestead Deductions.

Who qualifies for the Indiana over-65 circuit breaker credit?

Homeowners age 65+ with adjusted gross income under $30,000 (single) or $40,000 (joint), whose homestead is valued at less than $200,000, and who have owned and occupied the property for at least one year. This credit caps annual property tax increase at 2% per year — providing permanent protection once qualified. Separate from the $150 over-65 credit (which has higher income limits of $60,000/$70,000).

How much is Indiana's homestead deduction in 2026?

The Standard Homestead Deduction is $48,000 off assessed value, plus the Supplemental Homestead Deduction of 40% of the remaining value. For a $200,000 home: $200,000 − $48,000 = $152,000, minus 40% ($60,800) = $91,200 taxable value. Add the new 10% credit (up to $300) and the circuit breaker caps for total relief.