Homestead / Supplemental Homestead Deduction
IC 6-1.1-12-37 & IC 6-1.1-12-37.5
Primary Residence benefits. Applicant is eligible as individual owner(s), contract buyer, individual is entitled to occupy as tenant-stockholder of a cooperative housing corporation, OR individual has a beneficial interest in trust or right to occupy rent free under the terms of trust. Legislation for 2023 removed corporations, limited liability companies, partnerships and any similar entities from qualifying for homestead benefits. 2024 legislation reinstated corporations, limited liability companies, partnerships and any similar entities from qualifying for homestead benefits going forward.
Deduction Application must be signed and filed/postmarked by January 15th to reflect on the next printed tax bills.
This is a one-time filing unless the status of the property changes-such as it becomes a rental or is no longer utilized as a primary residence. The Auditor is to be notified within sixty (60) days of the change.
The Standard Deduction reduces the taxable value initially. The Supplemental Deduction is an additional deduction (received automatically with the application of Homestead) that is a percentage taken off the net assessment after the standard deduction is factored. Both deductions will vary each year using the table below or otherwise updated in legislation.
Tax Year | Standard Deduction Value | Supplement Deduction Value |
2024 | The lesser of $48,000 or 60% assessment | $600,000 AV or less: 40% AV after standard applied Over $600,000 AV: 30% AV after standard applied |
2025 | The lesser of $48,000 or 60% assessment | 27.5% of AV after standard applied |
2026 | $48,000 | 40% of AV after standard applied |
2027 | $40,000 | 46% of AV after standard applied |
2028 | $30,000 | 52% of AV after standard applied |
2029 | $20,000 | 57% of AV after standard applied |
2030 | $10,000 | 62% of AV after standard applied |
2031 + beyond | $0 | 66.7% of AV after standard applied |
Supplemental Homestead Credit (New to taxes in 2026)
IC 6-1.1-20.6-7.7
The Supplemental Homestead Credit is the lesser of $300 or 10% of the property tax liability first due. There is no application to receive credit, as it is applied automatically if a property owner is claiming the homestead standard deduction.