IDVA State Benefits Fact Sheet
Disabled Veteran Property Tax Benefits
100% Property Tax Deduction
An individual may have 100% of the assessed value deducted from their principal place of residence if they:
- Served in the Armed Forces for at least 90 days;
- Received an honorable discharge;
- Have a total disability; and
- Resided in Indiana for at least one (1) year before the assessment date for which the deduction under this section is claimed.
Disabled Veteran Property Tax Credit Amounts
$350 may be applied if the individual:
- Served in the Armed Forces during a war;
- Received an honorable discharge; and
- Has a service-connected disability rating of 10% or more as determined by the U.S. Department of Veterans Affairs.
Wartime Period
Korea: June 27, 1950 – January 31, 1955
Gulf War: August 2, 1990, to a future date to be set by law or Presidential Proclamation.
$250 may be applied if the individual:
- Served in the Armed Forces for at least 90 days;
- Received an honorable discharge;
- Is at least 62 years of age; and
- Has a disability rating of at least 10%.
The surviving spouse of a service member who was killed in action, died while serving on active duty, or died while serving on inactive duty training may also be eligible for this credit.
*The surviving spouse of an individual may qualify for benefits if the individual satisfied the requirements at the time of death. The surviving spouse is entitled to the credit regardless of whether the property for which the benefit is claimed was owned by the deceased veteran or the surviving spouse before the veteran’s death.
*Credits are stackable
Deductions for Homestead Conveyed to Disabled Veterans
The homestead was given to the veteran without charge by an organization exempt from federal income tax under the Internal Revenue Code (typically a 501(c)(3)).
An individual may claim a deduction from the assessed value of the individual’s homestead if they:
- Served in the Armed Forces for at least 90 days;
- Received an honorable discharge; and
- Has a disability of at least 50%.
The deductions under this section are as follows:
Veteran rated at 60%, deduction is equal to 60% of the assessed value.
How to Apply:
Apply at the county auditor or visit your local County Veteran Service Office.
Documents Needed:
State Form 12662 Application for Tax Deduction for Disabled Veterans and Surviving Spouses of Certain Veterans
An Annual VA Summary or Tax Abatement letter that shows service dates and combined rating, including a second page listing of wartime dates, or an accredited County or State Veteran Service Officer can complete Section VIII of the State Form 12662.
*State Form 51186 is no longer used.