Indiana Homestead Exemption: 2026 Deduction, Deadline and How to Apply

Indiana's homestead "exemption" is legally a set of deductions and credits that the county auditor applies to the assessed value and tax bill of your primary residence. The two core pieces are the homestead standard deduction (IC 6-1.1-12-37), which is $40,000 for the 2026 assessment date (taxes payable in 2027) and is stepping down to zero by 2030, and the supplemental homestead deduction (IC 6-1.1-12-37.5), which rises each year to offset it. You claim the standard deduction with a certified statement filed with your county auditor on or before January 15 of the year the taxes are first due; the auditor adds the supplemental deduction without a separate filing, and the deduction then carries forward automatically while you stay eligible. For other states, see our guide to homestead exemptions by state.

Information last verified on 2026-10-07. This article has not been reviewed by a licensed lawyer.

Jurisdiction scope: This article covers Indiana's statewide homestead property tax deductions and credits under Indiana Code Title 6, Article 1.1 (chiefly IC 6-1.1-12-37, 6-1.1-12-37.5, 6-1.1-20.6-7.5, 6-1.1-20.6-7.7 and 6-1.1-20.6-8.5), the creditor homestead exemption in IC 34-55-10-2, and the probate allowance in IC 29-1-4-1. It does not cover county-by-county local credit rates, business or farm property, or other states' programs.

How Indiana's homestead deduction works

Indiana does not exempt a home outright. Instead, the standard deduction and the supplemental deduction lower the home's assessed value, and property tax is figured on what is left. The homestead credits then reduce the tax bill itself.

The homestead covers the dwelling and up to one acre of land immediately surrounding it. Under IC 6-1.1-12-37, a homestead "consists of a dwelling and includes up to one (1) acre of land immediately surrounding that dwelling".

The county auditor receives your statement and applies the deduction. The county assessor values the property, and the Department of Local Government Finance (DLGF) prescribes the forms and oversees the system.

How much is the homestead deduction in Indiana?

The amount depends on the year, because Senate Enrolled Act 1 of 2025 (P.L.68-2025) is phasing the standard deduction down while phasing the supplemental deduction up. For assessment dates before 2025, the standard deduction was the lesser of 60% of assessed value or $48,000.

The statute now sets these standard deduction amounts: "in 2025, forty-eight thousand dollars ($48,000); in 2026, forty thousand dollars ($40,000); in 2027, thirty thousand dollars ($30,000); in 2028, twenty thousand dollars ($20,000); and in 2029, ten thousand dollars ($10,000). Beginning with the 2030 assessment date, and each assessment date thereafter, the deduction amount under this section is zero (0)."

The supplemental deduction is a percentage of the assessed value left after the standard deduction. It is capped so it may not exceed 75% of the home's gross assessed value.

How the shift affects any one bill depends on the home's value and local tax rates, and the statute does not state a dollar saving. A common misreading is that the deduction is permanently fixed at $48,000 or 60% of value; under the current statute it is not.

The supplemental homestead credit (new for 2026 bills)

For taxes first due and payable in 2026 and later, IC 6-1.1-20.6-7.7 adds a supplemental homestead credit. It equals the lesser of 10% of the homestead's property tax liability or $300, and levies approved by referendum are not counted.

Anyone who gets the standard deduction on the home is entitled to it, as is the surviving spouse of a deceased person who did. The statute says plainly: "A person is not required to file an application for the credit under this section." The county auditor identifies eligible homesteads and applies it each year.

The 1% property tax cap (circuit breaker)

Indiana limits homestead taxes through a credit rather than a cap on assessed value. Under IC 6-1.1-20.6-7.5, the circuit breaker credit is "the amount by which the person's property tax liability attributable to the person's: (1) homestead exceeds one percent (1%)" of gross assessed value.

Other property is capped at higher rates: 2% for other residential property, 2% for agricultural land and 3% for nonresidential property. Taxes from referendum-approved levies are outside the cap, so a homestead bill can exceed 1% when local voters approve such a levy.

In a county whose fiscal body adopts it by ordinance, a county option homestead relief credit can add more. A county may impose a local income tax rate of up to 0.3%, in 0.01% increments, to fund uniform credits for homesteads that are limited to the 1% cap (IC 6-3.6-6-3.1). This county option expires January 1, 2029 under current law. Whether your county has adopted it, and at what rate, is a county question; check with your county auditor.

Separately, the county option circuit breaker credit used in Marion and St. Joseph counties was extended by Senate Enrolled Act 163 of 2026 to January 1, 2029, according to DLGF.

Who is eligible for the Indiana homestead deduction?

The property must be your principal place of residence in Indiana. The statute defines that as "an individual's true, fixed, permanent home to which the individual has the intention of returning after an absence."

You must own the home, be buying it under a recorded contract, occupy it as a cooperative tenant-stockholder, or hold it through a qualifying trust (IC 6-1.1-12-17.9). You need an interest in the property on the assessment date, or on a later date in the same year if you file the required statement or sales disclosure.

Each homestead gets only one standard deduction, and an owner cannot claim it on two different properties in the same year. The statute has a narrow exception for a spouse living out of state, and service members away on out-of-state military orders keep homestead status.

How and when to apply

File a certified statement on the form prescribed by DLGF with the auditor of the county where the home is located. You do not file separately for the supplemental deduction; the county auditor applies it to any home that receives the standard deduction (IC 6-1.1-12-37.5). DLGF posts its homestead deduction form on its Deductions and Credits page.

Buyers have a shortcut: under IC 6-1.1-12-44, a sales disclosure form filed on time at purchase can serve as the application. You can also file in person or by mail, and a postmark counts.

Deadline: IC 6-1.1-12-37 requires you to "file the certified statement described in subsection (e) on or before January 15 of the calendar year in which the property taxes are first due and payable." For example, to get the deduction on taxes payable in 2027 (the 2026 assessment date), file by January 15, 2027. A late filer cannot claim the deduction retroactively for a missed year (IC 6-1.1-12-45).

If you just bought a home that already had a homestead deduction, the seller's deduction carries over for only one year unless you file your own statement (IC 6-1.1-12-45). To find your parcel and auditor information, see Indiana property records.

Do you have to reapply every year?

No. Under IC 6-1.1-12-37, a person "who remains eligible for the deduction in the following year is not required to file a statement to apply for the deduction in the following year." The supplemental deduction follows the standard deduction automatically.

The flip side is a duty to report changes. If you move out, rent the home, or claim a homestead-type benefit in another state, you must "file a certified statement with the auditor of the county, notifying the auditor of the person's ineligibility, not more than sixty (60) days after the date of the change in eligibility."

Losing the deduction and penalties

An owner who fails to notify the auditor owes the back taxes plus a civil penalty of 10% of the additional taxes. House Enrolled Act 1210 of 2026, mostly effective July 1, 2026, made this liability mandatory ("shall" instead of "may") and required auditors to issue the notice described below, according to DLGF's May 27, 2026 memo.

If the auditor finds that a property was not eligible for any year, within three years after the taxes were due, the auditor must issue a notice of the taxes, interest and penalties owed, plus a 10% fine on the total tax bill figured as if no homestead deduction applied. Payment is generally due within 30 days, and unpaid amounts can become a recorded lien, although a good-faith buyer who did not know of the problem is protected.

Senior, disabled and disabled veteran programs

Several statewide programs stack on top of the homestead deduction. Each needs its own filing with the county auditor; DLGF posts the forms on its Deductions and Credits page.

The $150 over-65 credit replaced the older over-65 assessed-value deduction in IC 6-1.1-12-9, which applies only to assessment dates before 2025 and expires January 1, 2027. DLGF's form for both senior programs is the "Over 65 Credit and Over 65 Circuit Breaker Credit Form," filed with the county auditor by January 15, with no refiling while you remain eligible.

The over-65 circuit breaker income limits are indexed each year. For taxes payable in 2027, DLGF set them at $61,680 for single filers and $71,960 for married couples. The statute's assessed-value limits ($200,000 or $240,000) apply only to people who first applied before 2025; it sets none for later first-time applicants. The $150 over-65 credit's $60,000 and $70,000 limits are not indexed.

The $125 blind or disabled credit replaced the former $12,480 deduction in IC 6-1.1-12-11. The credit section we reviewed lists no income limit, unlike the old deduction. Social Security disability counts as proof of disability.

The total disability deduction for veterans is filed on DLGF's Disabled Veterans Deductions/Credit Form (State Form 12662) by January 15 of the year the taxes are first due (IC 6-1.1-12-15), and a veteran taking it cannot also claim a credit under IC 6-1.1-51.3. A surviving spouse can claim it too, but loses it on remarrying.

If you received the old $14,000 disabled veteran deduction under IC 6-1.1-12-14 before HEA 1210, the county auditor applies the $250 credit instead for taxes payable in 2027 (IC 6-1.1-51.3-5). According to DLGF's May 27, 2026 memo, a veteran who now qualifies for the 100% deduction "will need to submit a new application to receive the 100% deduction rather than the $250 credit." The $250 and $350 veteran credits are also filed with the county auditor by January 15 of the year the taxes are first due, on State Form 12662, with no refiling while you remain eligible, and a veteran who qualifies for both can receive both. The statute requires an application for the $350 credit, although DLGF has recommended that counties move people who had the old $24,960 deduction to it automatically, so confirm with your county auditor.

Does the Indiana homestead deduction protect your home from creditors?

No. The property tax deduction does nothing against creditors. A separate law, IC 34-55-10-2, exempts a debtor's personal or family residence from collection up to a dollar cap.

The statute's text still reads $15,000, but the Department of Financial Institutions must reset the figure every six years for inflation. Under its rule (750 IAC 1-1-1), the amount since March 1, 2022 is $22,750 for a personal or family residence, with the next adjustment due no later than March 1, 2028. Check DFI before relying on the figure, since we could not confirm whether a later rule amendment has changed it.

There is no acreage limit, only the dollar cap. A home with a mortgage is protected only to the extent its value exceeds the balance due on the secured debt, so the exemption protects equity, not the full value. Separately, an interest in real estate held by spouses as tenants by the entirety is exempt except from joint debts.

Indiana opts out of the federal bankruptcy exemptions, so an Indiana-domiciled debtor uses the state exemptions. For how this plays out in a bankruptcy case, see Indiana bankruptcy laws. The exemption has other exceptions this page does not cover, so it is not a guarantee that a home is safe from every debt.

Homestead and probate

When an Indiana resident dies, the surviving spouse is entitled to a $25,000 allowance from the estate (or the children under 18 if there is no spouse) under IC 29-1-4-1. It is separate from both homestead laws above; see Indiana probate.

2026 ballot

No statewide property tax or homestead question was found for the November 3, 2026 ballot. A county sample ballot we reviewed shows two statewide constitutional questions, on bail and on where city and town court judges may live. Local school referendums can raise property taxes in some districts, and those levies fall outside the 1% cap.

Related

• Homestead exemptions by state
• Indiana bankruptcy laws
• Indiana probate
• Indiana property records

Disclaimer: This article provides general legal information about Indiana's homestead property tax deductions and credits under Indiana Code Title 6, and the creditor homestead exemption under IC 34-55-10-2, verified as of October 7, 2026. It is not tax or legal advice. For your situation, contact your county auditor, the Indiana Department of Local Government Finance, or a lawyer licensed in Indiana.

Last updated: 2026-10-07.

Frequently Asked Questions

How much is the homestead exemption in Indiana?

Indiana uses a homestead standard deduction of $40,000 for the 2026 assessment date (taxes payable in 2027), down from $48,000 for 2025, plus a supplemental deduction of 46% of the remaining assessed value for taxes payable in 2027 (IC 6-1.1-12-37 and 37.5). From 2026 bills, a supplemental credit also takes off the lesser of 10% of the homestead tax or $300.

When is the deadline to file for homestead exemption in Indiana?

File the certified statement with your county auditor on or before January 15 of the year the taxes are first due and payable (IC 6-1.1-12-37). For taxes payable in 2027, that is January 15, 2027.

Do I have to reapply for homestead exemption every year in Indiana?

No. Once the deduction is granted, you do not refile while you remain eligible. You must notify the county auditor within 60 days if you stop qualifying, for example by moving or renting the home.

Is the Indiana homestead deduction going away?

The standard deduction steps down to zero beginning with the 2030 assessment date under P.L.68-2025, but the supplemental deduction rises to 66.7% for taxes payable in 2031 and after, and the supplemental homestead credit and 1% circuit breaker cap continue.

Is there a senior property tax break in Indiana?

Yes. Owners 65 and older who meet income limits can claim a $150 over-65 credit and an over-65 circuit breaker credit that limits yearly growth in the homestead tax to 2%. Both are filed with the county auditor by January 15.

What happens if I claim the homestead deduction and I no longer qualify?

You owe the back taxes plus a 10% civil penalty if you did not notify the auditor within 60 days. If the auditor finds the property was ineligible, the auditor must bill the taxes, interest and a 10% fine on the total bill, and unpaid amounts can become a lien.

Does the Indiana homestead exemption protect my house from creditors?

Not the property tax deduction. A separate law, IC 34-55-10-2, exempts up to $22,750 in a personal or family residence, the figure set by the Department of Financial Institutions since March 1, 2022, and a mortgaged home is protected only beyond the mortgage balance.