Property taxes are one of the easiest places for Indiana homeowners to leave money on the table — simply by not filing a deduction they qualify for. Seniors in particular may be eligible for extra relief on top of the standard homestead deduction. This is a plain-English overview of the most common deductions and credits and how filing works. It is general information, not tax or legal advice, and the specific dollar amounts, income limits, and deadlines change from year to year — so always confirm the current rules with your county auditor or the Indiana Department of Local Government Finance (DLGF). When you buy or move, we make sure the re-filing step is on your radar. See our senior real estate resources for more.
The Homestead Deduction (Standard + Supplemental)
If the home is your primary residence, the homestead standard deduction and the supplemental homestead deduction are the foundational tax breaks — and they apply to homeowners of any age. Together they reduce the assessed value your taxes are calculated on, which can meaningfully lower your bill. Indiana has folded what used to be a separate mortgage deduction into a larger homestead deduction, so the homestead filing is the one that matters most today.
The catch people miss: the homestead follows the home, not you. When you buy a new place, you must file a new homestead deduction on it — and remove the one on the home you sold. Skip that step and you can end up overpaying or facing a correction later.
The Over 65 Deduction & Circuit Breaker Credit
Indiana offers two distinct benefits for older homeowners. The Over 65 Deduction (replaced by a $150 over-65 credit starting in 2026 — see what’s changed) has lowered taxes for qualifying homeowners, while the Over 65 Circuit Breaker Credit can cap how much your property tax bill is allowed to increase year over year. Both come with age, income, and assessed-value limits that are adjusted periodically.
Because those limits change, the smart move is simply to ask your county auditor whether you qualify this year — the potential savings are worth the phone call, and many eligible seniors never file.
Other Deductions Worth Checking
Indiana has additional deductions that may apply to your household: benefits for disabled veterans (and, in some cases, their surviving spouses), and deductions for homeowners who are blind or disabled, among others. Eligibility rules vary, and some deductions can be combined with the homestead and Over 65 benefits.
If anyone in your home is a veteran or has a qualifying disability, it is worth asking specifically about these — they are commonly overlooked.
How and When to File
Deductions are filed with your county auditor — Marion, Hamilton, Johnson, Hendricks, and every surrounding county each have their own office (many now let you file online). There is an annual deadline tied to the assessment year, so timing matters. When you close on a new home, put ‘file homestead’ on your to-do list right away rather than waiting.
We are not tax advisors, but we do this alongside our senior clients constantly, and we will remind you of the re-filing step and point you to your county’s office. For amounts and eligibility, your county auditor or the DLGF is the authority.
What’s Changed for Seniors (2026–2027)
Indiana’s 2025 property tax law (Senate Enrolled Act 1) changed some of the senior benefits described above:
- The over-65 deduction is now a $150 credit for qualifying homeowners, with income limits of $60,000 for a single filer and $70,000 for a joint return (IC 6-1.1-51.3-1). It requires an application unless your county moves you over automatically, so check with your county auditor.
- A new homestead credit of 10% of your homestead tax bill, up to $300, started with 2026 bills and applies automatically if you have the homestead deduction (IC 6-1.1-20.6-7.7).
- The homestead deductions are shifting through 2031: the standard deduction phases out while the supplemental deduction grows. See what changes in 2027.
This is general information, not tax or legal advice. Verify current figures with your county auditor or the Indiana Department of Local Government Finance (in.gov/dlgf).
Frequently Asked Questions
What is the Indiana homestead deduction?
It is a property tax deduction for your primary residence that lowers the assessed value your taxes are based on. Indiana combines a standard and a supplemental homestead deduction, and it now includes what used to be a separate mortgage deduction.
Do I have to re-file my homestead deduction when I move?
Yes. The homestead deduction is tied to the property, not to you. When you buy a new primary residence you must file a new homestead deduction on it, and the deduction should be removed from the home you sold.
What extra property tax help do Indiana seniors get?
Qualifying homeowners 65 and older may be eligible for the over-65 credit (a $150 credit that replaced the Over 65 Deduction starting in 2026) and the Over 65 Circuit Breaker Credit, which can cap yearly tax increases. Both have income and value limits that change, so confirm with your county auditor.
Where do I file, and is this tax advice?
You file with your county auditor (many offer online filing), and there is an annual deadline. This article is general information, not tax or legal advice — verify current amounts, limits, and deadlines with your county auditor or the Indiana DLGF.
Buying or Selling? We'll Keep Filing on Your Radar
When you move with us, we make sure the homestead re-filing step does not slip through the cracks — and we point you to your county's office for the details.