Indiana Homestead Exemption: Qualifying, Savings, and Stacking Credits

Indiana’s homestead exemption — technically the homestead standard deduction — reduces the taxable assessed value of your primary residence by up to $40,000 for the 2026 assessment date, and once it is on file your property also qualifies for a supplemental deduction, a new supplemental credit worth up to $300, and Indiana’s 1% property tax cap. You claim it by filing Form HC10 with the auditor in the county where the home sits. The deduction carries forward year after year with no re-filing as long as you keep living there.

Who Qualifies

The home has to be your principal place of residence, meaning the dwelling where you actually live and intend to return. You need to own it or be purchasing it under a contract recorded with the county recorder that obligates you to pay the property taxes. The benefit covers the dwelling and up to one acre of land immediately surrounding it.¹

You get one homestead deduction in Indiana. One. It does not matter how many properties you own or in how many counties. If a group of unmarried co-owners share a property and one of them lives there as a principal residence, that individual can still qualify.¹

County auditors confirm your legal domicile using identification tied to the property address. On the verification form you provide the last five digits of your Social Security number and driver’s license number. If you don’t hold an Indiana license, the last five digits of a state ID or a federal document control number (from a passport or work visa, for example) can substitute, though the auditor will likely ask for extra documentation when the ID is from out of state.²

Renting out the whole home disqualifies it. Partial and incidental uses are treated more forgivingly: a property carrying a local “tourist home” designation is not blocked from the deduction by statute if you still use it as your principal residence. Detached structures on the same parcel, such as a garage or guest house, qualify only if they are used primarily for residential purposes rather than as rental or investment property.³

What the Deduction Saves You in 2026

Indiana’s 2025 legislative session began phasing down the standard deduction while raising the supplemental deduction and adding a new credit. For the 2026 assessment date the standard deduction is $40,000, down from $48,000 in 2025.⁴ The scheduled amounts continue as follows:

2025 assessment date: $48,000
2026 assessment date: $40,000
2027 assessment date: $30,000
2028 assessment date: $20,000
2029 assessment date: $10,000
2030 assessment date and after: $0

Each figure is a ceiling. If your property’s assessed value is below the year’s cap, the deduction equals the full assessed value.⁴ On a home assessed at $200,000, the 2026 standard deduction takes $40,000 off the top, leaving $160,000 to be reduced further by the supplemental deduction.

The supplemental homestead deduction is automatic once the standard deduction is applied. There is no separate application. Under the 2025 legislation this supplemental deduction grows each year and reaches 66.7% of the homestead’s assessed value by 2031, at which point only one-third of your home’s value is used to calculate the tax as the standard deduction reaches zero.⁵

Qualifying homesteads also receive a new supplemental homestead credit on 2026 bills equal to 10% of the tax liability, capped at $300. That credit is a dollar-for-dollar reduction of the tax owed rather than a reduction of assessed value. Homeowners already receiving the standard deduction get the credit automatically.⁵

The 1% Cap

Indiana’s circuit breaker cap holds your property tax bill on a homestead to no more than 1% of the property’s gross assessed value. A home with a gross assessed value of $100,000 cannot be taxed more than $1,000 regardless of local rates. The 1% cap is reserved for homestead property, and you have to have the standard deduction on file to receive it.⁶ One exception matters: voter-approved referendum levies sit outside the cap and can push your effective rate above 1%.⁷

How and When to Apply

File the application with the County Auditor in the county where the property is located. The form is the Homestead Deduction Application, Form HC10 (State Form 54730).⁸ Buyers of a new home can claim the deduction through the Sales Disclosure Form (State Form 46021) filed at closing, which stands in for a separate HC10.⁹

The form has to be signed and dated by December 31 of the assessment year. Indiana law requires county assessors and auditors to accept applications that are postmarked, delivered in person, or submitted electronically by January 5 of the following year.¹⁰ Applications completed by January 15 will show up on the tax bill issued that spring. Mail, in-person delivery, and county online portals (where available) all work.

Once approved, the deduction rides forward each year as long as your ownership and residency don’t change. No annual renewal. If you already receive the homestead deduction, the updated deduction amounts and the new supplemental credit under the 2025 legislation apply automatically.⁵

If the Home Is Held by a Trust or LLC

Homes owned by corporations, partnerships, and LLCs are generally excluded, with one narrow opening. Beginning in 2024, an LLC or similar entity can receive the deduction if the person living in the home is a shareholder, partner, or member of the entity and the property was eligible for the homestead deduction as of March 1, 2009.³ That March 2009 cutoff catches people off guard. If you moved an already-homesteaded home into an LLC after that date, you likely meet the test. If the property was never homesteaded before the transfer, the entity route is closed to you.

Properties held in trust can qualify when the resident is described under the applicable trust provisions of the statute and uses the property as a principal residence.¹ Before shifting a home into a trust or LLC for estate planning, confirm the March 2009 requirement with your county auditor.

Reporting Changes and Avoiding Penalties

The deduction sticks as long as the home stays your principal residence. When it stops, you have 60 days to notify the county auditor in writing with a certified statement.¹¹ Renting the property, converting it to a vacation home, or moving your primary residence elsewhere all trigger this duty.

The penalties are stiff. You owe the full amount of deduction that was improperly applied plus a civil penalty of 10% of the additional taxes due, and auditors can go back up to three years to collect.¹² Auditors cross-reference homestead claims against voter registration, driver’s license addresses, and other databases, which is where most noncompliance surfaces.

Re-file the application when the deed changes (owners added or removed) or when marital status changes. A surviving spouse who inherits the home and stays there should file updated homestead paperwork promptly to keep coverage uninterrupted.

If Your Application Is Denied

File Form 130 (Taxpayer’s Notice to Initiate an Appeal) with your local assessing official. Deduction denials go on page 2 of the form, which covers objective issues. A single Form 130 can cover up to three years of assessments, and if you want a refund for taxes already paid you attach a Claim for Refund (Form 17T).¹³ The county Property Tax Assessment Board of Appeals reviews the case after an informal conference; a denial there can be escalated to the Indiana Board of Tax Review within 30 days of the county’s final determination.¹⁴

Other Benefits That Stack With the Homestead

Several other property tax benefits sit on top of the homestead deduction. The 2025 legislation converted some older deductions into credits. A deduction lowers assessed value before the tax rate is applied; a credit reduces the final bill dollar for dollar.

Over 65 Credit

The former over-65 deduction is now a $150 credit applied directly to your 2026 bill. The adjusted gross income limit expanded to $60,000 for single filers and $70,000 for joint filers. You must be at least 65 by December 31 of the year before taxes are due, and you file with proof of age and income verification.⁵ A separate Over 65 Circuit Breaker Credit caps year-over-year bill increases at 2%, but with tighter limits: income under $30,000 single or $40,000 joint, homestead assessed value under $200,000, and at least one year of ownership before claiming.¹⁵

Disabled Veteran Deduction

Veterans with a total service-connected disability may deduct $24,960 from the assessed value of their primary Indiana residence under IC 6-1.1-13. A separate deduction of $14,000 under IC 6-1.1-12-14 is available to veterans who served at least 90 days and received an honorable discharge, if they have a total disability or are over 62 with at least a 10% VA disability rating. For the $14,000 deduction the home’s assessed value must be under $240,000.¹⁶

Blind or Disabled Credit

The former blind or disabled deduction becomes a $125 credit on 2026 bills. Income limitations have been removed, though you still supply documentation of blind or disabled status. Homeowners who received the old deduction get the new credit automatically.⁵

If you are newly eligible for any of these benefits, file the appropriate application with the county auditor by January 15, 2026 to see them on your 2026 tax bill.⁵

1
Indiana General Assembly. Indiana Code 6-1.1-12-37 – Standard Deduction for Homesteads
2
Clinton County IN. Homestead Verification Form Fact Sheet
3
IN.gov. Frequently Asked Questions – Property Tax Deductions Webinar
4
IN.gov. Legislation Affecting Deductions, Exemptions, and Credits
5
IN.gov. Legislation Approved During the 2025 Legislative Session Provides New and Expanded Property Tax Deductions
6
IN.gov. Fact Sheet – Circuit Breaker Caps
7
IN.gov. DLGF Series Webinar – Circuit Breaker Overview
8
Cornell Law School. 50 IAC 24-4-2 – Application Using Department of Local Government Finance Form HC10
9
Cornell Law School. 50 IAC 24-4-3 – Application Using Sales Disclosure Form
10
IN.gov. Homestead Deductions Deadline Requirements
11
Hamilton County, IN. Ineligible Homestead Certification and Fraud
12
Porter County, IN. Homestead Deduction
13
IN.gov. Appeals Property Tax
14
IN.gov. Appeal Process Fact Sheet
15
Boone County, IN. Application for Senior Citizen Property Tax Benefits
16
IN.gov. Disabled Veteran Property Tax Deduction