Deduction Eligibility Requirements back  
Date of Record: September 28, 2006

Listed below are certain deductions and credits that are available to lower property taxes in Indiana.  Taxpayers may claim these benefits by filling an application with the Auditor in the County where the property is situated.  The provious tax bill will facilitate filing, but is not required.  Applications for deductions against real property must be filed on or before June 10 to be effective for taxes payable in the following year.  The deadline for mobile and manufactured homes that are not assessed as real property is March 2 unless noted below.  The ownership must be the recorded as of March 1st.  Individuals that purchase property, or record a transfer or mortgage document after March 1 may file for the deductions at the earliest opportunity, but the deductions will not apply until the following March 1st assessment date.  For additional information on these and other benefits, please consult Indiana Code 6-1.1-2 and 6-1.1-20.9)
 
DEDUCTION (Indiana Code) MAXIMUM AMOUNT ***

ELIGIBILITY REQUIREMENTS

Mortgage  (6-1.1-12-1b) $3,000
  1. reside on real property located in Indiana.  Includes mobile and manufactured homes; and
  2. must have owned real estate by March 1 of the current property tax year.
  3. A new application must be filed whenever a load on real estate is refinanced.
Homestead Credit (6-1.1-20.9) * 20 % of net tax bill*
  1. reside on real property located in Indiana.  Includes mobile and manufactured homes;
  2. credit against the taxes attributable only to the assessed value for the first acre and the dwelling and garage only; and
  3. must have owned real estate by March 1 of the current property tax year.
Homestead Standard Deduction (6-1.1-12-9) $45,000
  1. reside on real estate, including mobile and manufactured homes;
  2. only the first acre and the dwelling and farage allowed; and
  3. must have owned real estate by March 1 of the current property tax year.
Over 65 (6-1.1-12-9) $12,480
  1. reside on real estate, including mobile and manufactured homes;
  2. at least 65 by December 31st of the year preceding the application year;
  3. combined adjusted gross income not exceeding $25,000.
  4. on year of ownership prior to March 1 of the current property tax year; and
  5. assessed property value not exceeding $144,000.
  6. Surviving, unremarried spouse at least 60 years of age if deceased was 65 at the time of death.
Blind (6-1.1-12-11:12) $12,480
  1. reside on real estate, including mobile and manufactured homes;
  2. blind;
  3. taxable gross income not exceeding $17,000; and
  4. must have owned real estate by March 1 of the current property tax year. 
Disabled (6-1.1-12-11) $12,480
  1. reside on real estate, including mobile and manufactured homes;
  2. disabled;
  3. taxable gross income not exceeding $17,000; and
  4. must have owned real estate by March 1 of the current property tax year. 
Disabled Veteran (6-1.1-12-14:15) $12,480***
  1. owns real and/or personal property in Indiana;
  2. served in U.S. military service for at least 90 days and honorably discharged;
  3. surviving spouse may apply;
  4. either totally disabled or at least age 62 with at least 10% disability
  5. written evidence of the disability;
  6. assessed value of real and personal property combined is not greater than $113,000; and
  7. must have owned real estate by March 1 of the current property tax year. 
Veteran with Service Connected Disability (6-1.1-12-17.4) $24,960**
  1. owns real and/or personal property in Indiana;
  2. honorably discharged after serving in U.S military during a war,
  3. service connected disability of least 10% with written evidence of disability;
  4. must have owned real estate by March 1 of the current property tax year. 
  5. surviving spouse may apply;
Veteran World War I (6-1.1-12-17.4) $18,720**
  1. reside on real estate, mobile and manufactured homes unless in a nursing home or hospital;
  2. be a veteran of World War I;
  3. assessed value of the residence property does not exceed $163,000; and
  4. must have owned real estate for at least one year prior to March 1 of the current assessment year. 
Surviving Spouse of World War I Veteran (6-1.1-12-16;17(b)) $18,720**
  1. owns real and/or personal property in Indiana;
  2. spouse of deceased person serving in the U.S. military before November 12, 1918;
  3. honorable discharge; and
  4. not claiming the Deduction for Disabled Veterans or Surviving Spouses,
  5. must have owned real estate by March 1 of the current property tax year. 
Solar Energy Heating or Cooling Systems (6-1.1-12-26)
Assessed value (AV)
with the device, less
the AV without the device. 
In other words, the value
of the device.
Wind Power Device (6-1.1-12-29)
Hydroelectric Power Device (6-1.1-12-33)
Geothermal  Device (6-1.1-12-34)
  1. own real property, mobile or manufactured homes, both real and annually assessed; and
  2. for real estate ownership by March 1 of the current property tax year, or for annually assessed mobile homes, ownership by January 15th of the tax year.
  3. real property filing period is March 1 and May 10 of the assessment year.  For annually assessed property, the filing period is January 15 to March 31 of the tax year.
* Depending on the county, you may also receive a County Homestead Credit on your residence.  Please consult with your County Auditor. 
** Any unused portion after application to residence property applies next to personal property and lastly as Excise Tax Credit on either motor vehicle  excise tax (IC 6-6-5-5) or aircraft license tax (IC 6-6-6.5)
*** The sum of the deductions provided to a mobile home or to a manufactured home that is not assessed as real property may not exceed one-half (1/2) of the assessed value of the mobile home or manufactured home (IC6-1.1-12-40.5)