Indiana Property Tax Exemptions: Complete Guide for 2026
TL;DR
Indiana offers several property tax exemptions that can save homeowners hundreds or thousands per year. The most widely available is the Standard Homestead Deduction (Up to 60% of assessed value (maximum $45,000)). Additional exemptions are available for seniors, disabled homeowners, veterans, and agricultural land. Most require an application. If you have not filed, you may be leaving money on the table.
Property taxes in Indiana average 0.81% of home value, which means the typical homeowner pays about $1,701 per year on a $210,000 home. Exemptions directly reduce your taxable value or tax bill, and they apply every year once approved. Here is every exemption available in Indiana for 2026.
Summary of Indiana Property Tax Exemptions
| Exemption | Benefit |
|---|---|
| Standard Homestead Deduction | Up to 60% of assessed value (maximum $45,000) |
| Supplemental Homestead Deduction | Additional 35% on assessed value between $600,000 and your value, plus 25% on any portion over $600,000 |
| Mortgage Deduction | $3,000 reduction in assessed value |
| Over-65 Deduction | Up to $14,000 reduction in assessed value |
| Disabled Veteran Deduction | $24,960 for veterans with 10%+ disability. Complete exemption for totally disabled veterans. |
| Property Tax Cap | Taxes capped at 1% of assessed value for homesteads, 2% for other residential, 3% for other property |
Detailed Exemption Guide
Standard Homestead Deduction
| Amount | Up to 60% of assessed value (maximum $45,000) |
| Who Qualifies | Owner-occupied primary residences |
| How to Apply | File with county auditor. Must file once, then it auto-renews. |
| Deadline | January 5 for the current tax year (for taxes payable the following year) |
Supplemental Homestead Deduction
| Amount | Additional 35% on assessed value between $600,000 and your value, plus 25% on any portion over $600,000 |
| Who Qualifies | Same as standard homestead |
| How to Apply | Applied automatically when you have the standard homestead deduction |
| Deadline | Automatic with standard homestead |
Mortgage Deduction
| Amount | $3,000 reduction in assessed value |
| Who Qualifies | Homeowners with a recorded mortgage |
| How to Apply | File with county auditor |
| Deadline | January 5 |
Over-65 Deduction
| Amount | Up to $14,000 reduction in assessed value |
| Who Qualifies | Homeowners 65+ with income under $40,000 and assessed value under $240,000 |
| How to Apply | File with county auditor with income documentation |
| Deadline | January 5 |
Disabled Veteran Deduction
| Amount | $24,960 for veterans with 10%+ disability. Complete exemption for totally disabled veterans. |
| Who Qualifies | Veterans with VA-rated disability |
| How to Apply | File with county auditor with VA documentation |
| Deadline | January 5 |
Property Tax Cap
| Amount | Taxes capped at 1% of assessed value for homesteads, 2% for other residential, 3% for other property |
| Who Qualifies | All property (automatic) |
| How to Apply | Applied automatically. Verify on tax bill. |
| Deadline | Automatic |
How to Maximize Your Savings
Stack Multiple Exemptions
Many of these exemptions can be combined. For example, you can claim a homestead exemption and a veteran exemption at the same time. Check each exemption's eligibility requirements, and apply for every one you qualify for.
Combine Exemptions with an Assessment Appeal
Exemptions reduce your taxable value, but if the underlying assessed value is too high, you are still overpaying. File for exemptions and appeal your assessment for maximum savings. See our Indiana property tax appeal guide for step-by-step instructions.
Do Not Miss Deadlines
Most exemptions have application deadlines. Missing the deadline means waiting another year. Mark the dates on your calendar and file early.
How PropertyTaxFight Can Help
Exemptions are just one piece of the puzzle. If your assessed value is too high, PropertyTaxFight can help you build a strong appeal case for $79. You get comparable sales data, equity analysis, and county-specific filing instructions. Combined with the right exemptions, you can significantly reduce your annual tax bill.
Frequently Asked Questions
Do I need to reapply for exemptions every year in Indiana?
It depends on the exemption. Some (like homestead exemptions) are one-time filings that auto-renew. Others (especially income-based exemptions for seniors) require annual renewal. Check the specific requirements for each exemption you claim.
Can I apply for exemptions retroactively?
Some Indiana exemptions allow retroactive applications for prior tax years. Check with your county assessor or tax office for the specific rules. In many cases, you can recover 1-2 years of missed exemptions.
What happens to my exemption if I sell my home?
Exemptions tied to owner-occupancy (like homestead exemptions) do not transfer to the buyer. The new owner must apply for their own exemptions. When you buy a new home, remember to file for exemptions at your new address.
How do I know if I am already receiving an exemption?
Check your property tax bill or assessment notice. Exemptions are usually listed as line items. You can also check with your county assessor or auditor to see which exemptions are on file for your property.
Start Saving on Your Indiana Property Taxes
File for every exemption you qualify for. It is free money that reduces your tax bill every year. Then, if your assessed value seems too high, use PropertyTaxFight to build your appeal case. The combination of exemptions and a successful appeal can save you thousands.