Indiana Homestead Exemption 2026: Standard, Supplemental, and a New Credit
Updated August 2026
Indiana's homestead exemption is officially a stack of deductions and credits. For the 2026 assessment date (taxes payable in 2027) the Standard Deduction takes $40,000 off your assessed value, then phases down each year to $0 for the 2030 assessment date. File once with your county auditor by January 15, and the Supplemental Deduction and Credit apply automatically. The old Mortgage Deduction was repealed.
Every Indiana owner-occupant qualifies for the Standard and Supplemental Homestead Deductions automatically once filed, no age or income test, plus a new Supplemental Homestead Credit and the existing 1% tax cap. Seniors and disabled homeowners can add smaller, separate income-tested credits on top.
Indiana's Property Tax Relief Programs
Homestead Standard Deduction
What it does: $40,000 off assessed value for the 2026 assessment date (taxes payable in 2027), down from $48,000 for the 2025 assessment date (2026 bills). It keeps phasing down by assessment date: $30,000 for 2027, $20,000 for 2028, $10,000 for 2029, and $0 for 2030 and after.
Who qualifies: Any owner-occupant using the property as their principal place of residence. No age or income test.
Deadline and form: January 15 (State Form 5473 / HC10, filed with your county auditor). Citation: IC 6-1.1-12-37.
Supplemental Homestead Deduction + Credit
What it does: a percentage of the assessed value left after the Standard Deduction: 40% for taxes payable in 2026 (bills that used the $48,000 Standard Deduction), 46% for taxes payable in 2027 (the $40,000 year), then 52%, 57% and 62%, reaching 66.7% for taxes payable in 2031 and after. It is capped at 75% of gross assessed value. On top of that, a new Supplemental Homestead Credit equals the lesser of 10% of your homestead tax liability or $300.
Who qualifies: Applied automatically once the Standard Deduction is on file.
Deadline and form: Automatic (N/A). Citation: IC 6-1.1-12-37.5; IC 6-1.1-20.6-7.7.
Over-65 and Blind/Disabled Credits
What it does: Over-65 credit up to $150 (income-tested); Blind/Disabled credit up to $125 (no income limit).
Who qualifies: Over-65 credit requires age 65+ and AGI at or below $60,000 (single) / $70,000 (joint); Blind/Disabled credit has no income test.
Deadline and form: January 15 (State Form 5473 / HC10). Citation: IC 6-1.1-51.3-1, IC 6-1.1-51.3-2.
An exemption or credit lowers your bill only after the assessed value is set. If that value is too high to begin with, you are overpaying on everything above it regardless of which relief programs you claim. Nobody checks the underlying value unless you do.
How to Apply
- Contact your county assessor's (or, where noted above, your state revenue department's) office for the current application form
- Gather proof of ownership, occupancy, and, for income-tested programs, your prior-year income documentation
- File before the deadline listed above, most jurisdictions do not accept late applications for that tax year
- Confirm the relief shows up on your next assessment notice or tax bill
The Bottom Line
The Standard Deduction is shrinking on a set legislative schedule through 2030, so don't rely on older figures you may have seen. File once with your county auditor and it carries over automatically unless you notify them of a change in eligibility.
Note: Program names, dollar figures, and income limits above are current as of August 2026 and are set or adjusted by the state legislature or department of revenue, not by AppealDesk. Some figures adjust annually, confirm the current-year number with your county or state before applying. AppealDesk helps homeowners identify available relief programs and appeal overassessments.
Most homeowners stack these programs on top of whatever value the assessor assigned and never question the value itself. It came from a mass-appraisal model, not an individual review of your home. It is worth checking once.
