Indiana property-tax guide • Updated for 2026 rules
Indiana Homestead Exemption: Rules, Deductions, Savings & 2026 Changes
Indiana homeowners usually search for a “homestead exemption,” but Indiana law technically calls the main benefit the Homestead Standard Deduction. A qualifying principal residence can receive a standard assessed-value deduction, an automatically calculated Supplemental Homestead Deduction, the 1% homestead property-tax cap, and—beginning with taxes payable in 2026—a new Supplemental Homestead Credit of up to $300.
The most important 2026 detail is the timing. Indiana property taxes are paid in arrears. Your 2026 tax bill is generally based on the January 1, 2025 assessment. That bill uses a $48,000 Homestead Standard Deduction and a 40% Supplemental Homestead Deduction. A homeowner applying during 2026 for taxes first payable in 2027 enters the next phase: a $40,000 standard deduction and a 46% supplemental deduction.
Start here
Indiana Homestead Exemption Quick Facts
Indiana distinguishes between a deduction, which reduces assessed value, and a credit, which reduces property-tax liability. A qualifying homestead can now receive both.
Current tax bill
Indiana Homestead Deduction for 2025 Pay 2026
If you are looking at a property-tax bill due in 2026, it is generally a 2025 Pay 2026 bill. Indiana assesses property in one year and collects the corresponding taxes in the following year.
$48,000 Standard Homestead Deduction
For the January 1, 2025 assessment date, the standard homestead deduction is $48,000.
40% Supplemental Homestead Deduction
For taxes first due and payable in 2026, the supplemental deduction is 40% of the assessed value remaining after the standard homestead deduction.
Up to $300 Supplemental Homestead Credit
The new credit is the lesser of $300 or 10% of the qualifying homestead property-tax liability, subject to the statutory credit calculation sequence.
The deduction reduces assessed value. The credit is applied later against property-tax liability. You do not file a separate application for either when you already qualify for the Homestead Standard Deduction.
Rules are changing
Indiana Homestead Deduction Phase-Out & Supplemental Increase
Indiana’s 2025 property-tax legislation created a multi-year transition. The fixed-dollar Standard Homestead Deduction gradually decreases while the percentage-based Supplemental Homestead Deduction increases.
| Assessment / Tax Cycle | Standard Deduction | Supplemental Deduction |
|---|---|---|
| 2025 assessment / Pay 2026 | $48,000 | 40% |
| 2026 assessment / Pay 2027 | $40,000 | 46% |
| 2027 assessment / Pay 2028 | $30,000 | 52% |
| 2028 assessment / Pay 2029 | $20,000 | 57% |
| 2029 assessment / Pay 2030 | $10,000 | 62% |
| 2030 assessment / Pay 2031+ | $0 | 66.7% |
Apply as soon as you qualify. An application for taxes first due and payable in 2027 is generally due to your county auditor by January 15, 2027. That cycle uses the $40,000 standard deduction and 46% supplemental percentage.
A source of major confusion
Why Indiana Says “2025 Pay 2026”
Property value and qualifying homestead status are associated with the 2025 assessment cycle.
Assessment data becomes part of the property-tax calculation process.
The resulting property taxes are first due and payable in 2026.
The deduction shown on a 2026 tax bill is not necessarily the amount listed for the “2026 assessment date.” The January 1, 2026 assessment generally affects the tax bill payable in 2027.
Core eligibility test
Who Qualifies for Indiana Homestead Deduction?
The property must be an Indiana principal place of residence. Indiana’s 2026 legislation now places the definition directly in statute: the principal place of residence is the person’s true, fixed, permanent home to which the person intends to return after an absence.
It must be your principal residence
A vacation property, ordinary investment property or second home does not qualify merely because you own it.
You need a qualifying ownership or occupancy interest
Ordinary owners qualify when the other requirements are met. Certain contract purchasers, cooperative tenant-stockholders and qualifying trust arrangements can also qualify.
The residence must be in Indiana
The homestead deduction is tied to an Indiana principal residence.
You must actually qualify when you sign
The current HC10 instructions state that the home must actually be used as your principal residence when the application is signed.
What counts as the homestead?
Which Parts of an Indiana Property Can Receive the Homestead Deduction?
Indiana’s definition is more specific than simply saying “your house.” The qualifying homestead can include the principal dwelling and particular residential improvements.
The house used as the individual’s residence.
The garage can be attached or detached.
Land immediately surrounding the qualifying dwelling.
These residential improvements can fall within the statutory homestead definition.
It must be predominantly residential and not used as rental or investment property.
Separate from decks, patios, gazebos and pools.
A qualifying mobile home not assessed as real property can receive the benefit.
Qualifying manufactured homes not assessed as real property are also addressed by the statute.
The statutory homestead definition generally includes up to one acre immediately surrounding the dwelling. Other land can be treated differently for assessment purposes.
Mixed residential/business use
Income-Producing Portions of a Home Can Be Excluded
Indiana’s HC10 instructions specifically distinguish the residential homestead from income-producing portions of the property.
If part of the dwelling or qualifying one-acre home site is used to produce income, the application asks the homeowner to describe that use. The income-producing part may not qualify for the homestead deduction.
Examples that need review
- A separately rented portion of a duplex
- An apartment rented to another household
- Rooms converted primarily to commercial activity
- A business operating from a garage
- A separate building used as investment or rental property
Do not automatically assume
- Any home office destroys the entire homestead
- A mixed-use parcel receives no benefit at all
- Every structure on the parcel qualifies
- Rental activity is irrelevant
The county assessor/auditor can determine which portion is properly classified as homestead.
Application procedure
How to Apply for Indiana Homestead Exemption
Form HC10 — State Form 5473
Claim for Homestead Property Tax Standard / Supplemental Deduction.
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1
Confirm the property is your principal residence
You must actually be eligible when signing the application.
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2
Identify the county where the homestead is located
The application is administered locally. The county auditor is normally the primary office for deductions and credits.
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3
Gather the parcel information
Have the parcel number, legal/property description, township and taxing district information available.
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4
Complete the claimant information
The HC10 requests claimant and spouse information and limited identifying-number information required by Indiana law.
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5
Disclose other property and any vacated homestead
The form asks about property owned elsewhere and whether you are leaving another homestead.
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6
Describe any income-producing use
If part of the dwelling or immediately surrounding property is used for income, disclose the use as required by the form.
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7
Sign the application while eligible
The signed certification confirms the facts supporting the deduction.
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8
File with the county auditor by January 15
The current HC10 says the application must be filed or postmarked by January 15 of the year in which the requested property taxes are first due and payable.
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9
Verify the deduction on the tax bill
After approval, inspect the deduction and credit sections of the next applicable TS-1 property-tax statement.
Indiana also allows a properly completed Sales Disclosure Form to serve as an application for the Homestead Deduction. Do not assume your closing company completed this for you—confirm the deduction with the county auditor.
Deadline update
Indiana Homestead Deduction Filing Deadline Is January 15
The current DLGF guidance states that a homeowner seeking a deduction or credit must file by the applicable annual deadline. For the Homestead Deduction, current HC10 instructions use January 15 of the year the property taxes are first due and payable.
Deadline for the deduction appearing on the 2026 bill.
Relevant to many homeowners buying or establishing a new Indiana homestead during 2026.
Older Indiana forms and county pages may still reference previous filing dates such as January 5 or December 31. Use the current DLGF form and current county-auditor instructions before filing.
Prepare before filing
What Information Does Indiana Form HC10 Request?
Claimant
- Legal name
- Telephone
- Email address
- Spouse information
- Required last-five-digit identification data
Property
- County
- Township
- Taxing district
- Parcel number
- Legal description
- Real property or annually assessed mobile home status
Contract Purchase
- Fee-simple owner’s name
- Recorder’s office
- Recorded contract information
Other Property
- Property owned elsewhere
- State/county/township
- Whether another homestead is being vacated
- Address of vacated homestead
The HC10 notes that telephone, Social Security, driver’s-license, state-identification and federal-identification information covered by the form is confidential under Indiana law. Use the county’s official filing method rather than emailing sensitive information to an unverified address.
Official DLGF-style example
How the 2026 Indiana Homestead Deductions Reduce Assessed Value
The following assessed-value example uses the same figures shown in Indiana DLGF’s 2025 Pay 2026 legislative calculation example.
It means $119,480 is removed from assessed value in this example before the local tax-rate, property-tax-cap and applicable credit calculations are completed.
New beginning in 2026
Indiana Supplemental Homestead Credit: Up to $300
The 2025 legislation created a separate Supplemental Homestead Credit that first appears on taxes due and payable in 2026.
Examples
10% = $150
Credit: $15010% = $275.70
Credit: $275.7010% = $400
Credit capped at $300If the parcel qualifies for the Homestead Standard Deduction, the county auditor identifies and applies the Supplemental Homestead Credit under the statutory calculation rules.
Circuit breaker protection
Indiana’s 1% Homestead Property-Tax Cap
Qualifying homestead property generally falls under Indiana’s 1% circuit-breaker property-tax cap. Other residential property and agricultural land generally use a 2% cap, while most other property uses 3%.
Indiana’s tax-bill instructions explain that voter-approved referendum taxes and certain other statutory adjustments can be added outside the base cap calculation, producing an effective maximum above the simple 1% figure.
Why claiming homestead matters twice
- The standard and supplemental deductions reduce assessed value.
- The homestead classification can qualify the parcel for the 1% circuit-breaker cap.
- The new Supplemental Homestead Credit can reduce liability again after earlier stages of the calculation.
Read the TS-1
How to Verify Homestead Benefits on an Indiana Property-Tax Bill
Assessed Value & Tax Summary
Look at gross homestead assessed value, total deductions and resulting net assessed value.
Property Tax Cap
Review the circuit-breaker cap and any referendum/cap adjustment.
Supplemental Homestead Credit
2026 TS-1 documentation includes a separate line for this new credit.
Deductions
Confirm the Homestead Standard and Supplemental deductions appear.
Contact the county auditor—not merely the mortgage company or county treasurer. The auditor administers deductions and credits and is the best local office for eligibility questions.
2026 payment calendar
Indiana Property-Tax Due Dates in 2026
May 10 falls on a non-business day in 2026, so DLGF lists May 11.
Second 2026 property-tax installment.
Indiana property taxes are normally due in two installments around May 10 and November 10, with the deadline moving to the next applicable business day when necessary.
The county auditor handles the deduction application. The county treasurer generally collects the property-tax payment.
Rules often missed in generic guides
Special Indiana Homestead Eligibility Situations
Recorded Contract Purchaser
A person purchasing under a qualifying recorded contract can potentially receive the deduction when the contract requires the purchaser to pay the property taxes and requires title to transfer after the contractual obligations are completed.
Qualifying Trust
A trust-owned residence can potentially qualify when the occupant has the statutorily required beneficial interest or qualifying right of occupancy and otherwise meets the homestead rules.
Tenant-Stockholder
Indiana law includes qualifying tenant-stockholders of cooperative housing corporations.
LLC / Corporation / Partnership
Entity-owned property does not automatically qualify. Indiana Code contains a specific exception framework, so have the county auditor review the ownership arrangement before assuming eligibility.
Incomplete Residence
Indiana’s current property-tax benefit guidance recognizes limited situations in which property may still qualify even when the dwelling was incomplete or land was vacant on the assessment date.
Annually Assessed Home
Mobile and manufactured homes that are not assessed as real property have special assessment and deduction rules, but qualifying homes can receive homestead benefits.
Moving during the year
Can You Have Homestead on Two Indiana Homes After Moving?
As a general rule, an individual or married couple cannot simply claim multiple homestead deductions on different permanent residences for the same year.
However, Indiana’s HC10 instructions describe an important move-year transition: when a homeowner leaves an Indiana principal residence after the assessment date and moves to another principal residence later in the year, the deduction can remain on the former property for that tax cycle while the homeowner may also apply for the new residence for the same tax cycle. The old deduction is then removed for the next assessment date.
If you recently moved, ask the new county auditor whether your Sales Disclosure Form already claimed the new homestead deduction. Do not file a second conflicting application simply because you are unsure.
Multiple claims
Indiana Homestead Rules for Married Couples
Indiana generally treats an individual or married couple as limited to one homestead deduction rather than allowing spouses to claim unrelated primary residences simply to obtain multiple tax benefits.
Indiana’s current property-tax benefit guidance notes that spouses who independently own and maintain genuinely separate homesteads in different states can present a special statutory situation. Do not rely on a generic “one house only” statement when the spouses genuinely maintain separate residences—ask the county auditor to apply the current statute to the facts.
Estate-planning ownership
Can a Home in a Trust Receive Indiana Homestead Deduction?
Potentially yes. Trust ownership does not automatically eliminate Indiana homestead eligibility.
The current HC10 guidance describes qualifying situations where the occupant has a beneficial interest in the trust or has the right to occupy the residence rent-free under a qualifying personal residence trust and otherwise meets the statutory requirements.
Confirm the effect with the county auditor and your estate-planning professional. Property-tax eligibility and estate-planning consequences are separate questions.
Keeping the deduction legally
Notify the County Auditor Within 60 Days If You Become Ineligible
Indiana requires a homeowner receiving the Homestead Standard Deduction to notify the county auditor when circumstances change and the property becomes ineligible.
The property is no longer your principal residence.
The qualifying residential use has materially changed.
A duplicate Indiana or equivalent out-of-state benefit can create an eligibility problem.
A deed or ownership change can require the deduction to be reviewed or refiled.
Indiana’s 2026 legislative guidance states that a person who fails to provide the required notice and improperly keeps the deduction can owe the additional taxes plus statutory penalties. The current homestead rule includes a 10% civil-penalty component in applicable cases.
DLGF lists State Form 54890 for notifying the county about a change affecting homestead eligibility.
After approval
Do You Reapply for Indiana Homestead Every Year?
Normally, no. DLGF states that taxpayers generally do not need to reapply annually for deductions or credits.
The deduction continues into succeeding years while the taxpayer and property remain eligible. A sale, title change or other qualifying change can require a new filing or notification.
When your property-tax bill arrives, look at the deductions section. Do not assume the homestead is still there simply because it appeared last year.
Do not stop with homestead
Other Indiana Property-Tax Credits & Benefits to Check
A homeowner who qualifies for homestead may also qualify for another deduction or credit. Several Indiana benefits changed substantially beginning with the 2026/2027 cycles.
Over 65 Credit
$150Current 2026 TS-1 documentation lists a $150 credit subject to statutory income and eligibility requirements.
Over 65 Circuit Breaker
For qualifying homeowners, this separate credit can limit increases in homestead property-tax liability.
Blind/Disabled Credit
$125Current 2026 TS-1 documentation lists a $125 credit for qualifying blind or disabled taxpayers.
Disabled Veteran Benefits
Indiana substantially revised veteran benefits for the 2026 assessment cycle, including new credits and a modified deduction for qualifying totally disabled veterans.
County Option Homestead Relief
A county can fund qualifying homestead relief through local income-tax provisions. Availability and amount are local.
County Option Circuit Breaker
Special county-option rules can provide additional protection to qualifying homeowners where adopted.
The former Mortgage Deduction no longer applies beginning with the 2023 Pay 2024 tax-bill cycle.
Use the right office
County Auditor vs. Assessor vs. Treasurer: Who Handles Homestead?
Homestead Deduction & Credits
- HC10 applications
- Deduction eligibility questions
- Supplemental deduction
- Homestead credits
- Change-of-use notices
- Tax-bill calculations
Property Assessment
- Gross assessed value
- Property record card
- Land and improvement values
- Assessment appeals
- Sales disclosure processing
Payment
- Collect property taxes
- Payment methods
- Installment balances
- Delinquent-tax questions
State Oversight
- Prescribed forms
- State guidance
- Tax-rate certification
- Legislative guidance
- Statewide reports
DLGF specifically identifies county auditors as the best point of contact for deduction and credit eligibility questions.
Closing-day protection
Indiana Homebuyer Homestead Checklist
Do not file using only the mailing address.
A properly completed Sales Disclosure Form can serve as the application.
Do not rely solely on what appears in closing paperwork.
If you moved from another Indiana home, make sure the transition is handled properly.
File before the applicable deadline rather than waiting for the next tax bill.
Check standard deduction, supplemental deduction, tax cap and credit lines.
Troubleshooting
Indiana Homestead Deduction Missing From Your Tax Bill?
Make sure you understand the assessment-year versus pay-year difference.
Confirm both Homestead Standard and Supplemental deductions.
A mailing-address error or incorrect parcel can create confusion.
Ask the auditor whether the application was received and approved.
A deed, trust or ownership change may have interrupted the deduction.
Verify the parcel is classified as your qualifying principal residence.
Another Indiana or out-of-state homestead claim can trigger review.
Do not wait until after another billing cycle if you believe the deduction is wrong.
Understand the tax bill
Indiana Homestead Property-Tax Terms
- Gross Assessed Value
- The assessed value before eligible property-tax deductions are subtracted.
- Homestead Standard Deduction
- The first assessed-value deduction available to a qualifying Indiana principal residence.
- Supplemental Homestead Deduction
- An automatic percentage deduction applied to assessed value remaining after the standard homestead deduction.
- Supplemental Homestead Credit
- A separate property-tax liability credit beginning with taxes payable in 2026, generally equal to the lesser of 10% of qualifying liability or $300.
- Net Assessed Value
- Assessed value remaining after applicable deductions.
- Tax Rate
- The certified rate applied to net assessed value within the property’s taxing district.
- Circuit Breaker
- Indiana’s constitutional/statutory property-tax-cap system.
- Pay Year
- The year in which Indiana property taxes are first due and payable, normally following the assessment year.
- Principal Place of Residence
- The person’s true, fixed, permanent home to which the person intends to return after an absence.
- HC10
- Indiana Form HC10 / State Form 5473 used to claim the Homestead Property Tax Standard and Supplemental Deduction.
Common questions
Indiana Homestead Exemption FAQs
What is the Indiana homestead exemption?
Indiana technically calls the primary benefit the Homestead Standard Deduction. It reduces the assessed value of a qualifying principal residence. A qualifying homestead also receives an automatically calculated Supplemental Homestead Deduction and can qualify for the 1% circuit-breaker property-tax cap and Supplemental Homestead Credit.
How much is the Indiana homestead deduction in 2026?
For the 2025 assessment / 2025 Pay 2026 tax cycle, the Standard Homestead Deduction is $48,000 and the Supplemental Homestead Deduction is 40% of the assessed value remaining after the standard deduction. The new Supplemental Homestead Credit can reduce qualifying property-tax liability by up to another $300.
Why does Indiana say 2025 Pay 2026?
Indiana property taxes are paid in arrears. Property assessed for 2025 generally produces the property-tax bill first due and payable in 2026. This distinction is important because homestead deduction amounts are changing by assessment year.
What is the Indiana Homestead Standard Deduction for the 2026 assessment?
The Standard Homestead Deduction is $40,000 for the January 1, 2026 assessment date, which generally affects taxes first due and payable in 2027. The corresponding Supplemental Homestead Deduction percentage for Pay 2027 is 46%.
What is Indiana’s new $300 homestead credit?
The Supplemental Homestead Credit begins with taxes payable in 2026. For a qualifying homestead, the credit is generally the lesser of 10% of the applicable homestead property-tax liability or $300, applied according to Indiana’s statutory property-tax credit calculation order.
Do I have to apply separately for the Supplemental Homestead Deduction?
No. A taxpayer who qualifies for the Homestead Standard Deduction is also entitled to the Supplemental Homestead Deduction, which is calculated by the county auditor.
Do I apply separately for the Supplemental Homestead Credit?
No separate application is normally required. County auditors identify qualifying properties based on eligibility for the Homestead Standard Deduction and apply the credit under the statutory rules.
What is the deadline to file Indiana homestead deduction?
The current HC10 instructions say the application must be completed, dated and filed or postmarked with the county auditor by January 15 of the calendar year in which the requested property taxes are first due and payable.
Where do I file Indiana Form HC10?
File with the county auditor in the Indiana county where the homestead is located. County auditors are the primary local contacts for deduction and credit eligibility.
Can the Sales Disclosure Form apply for Indiana homestead?
Yes. Indiana law allows a properly completed Sales Disclosure Form to be used as a Homestead Deduction application. Homebuyers should still verify with the county auditor that the application was actually processed.
Do I have to reapply for Indiana homestead every year?
Generally no. DLGF says deductions and credits do not normally require annual reapplication. A sale, title change or eligibility change can require additional action.
Can a rental property receive Indiana homestead deduction?
An ordinary investment or rental property is not a qualifying principal residence. If only part of a property is income-producing, that portion can be excluded while the qualifying residential portion is reviewed separately.
How much land qualifies as Indiana homestead property?
The statutory homestead generally includes the dwelling and up to one acre of land immediately surrounding the dwelling, together with specified qualifying residential improvements.
Does an attached or detached garage qualify?
Indiana’s homestead definition includes one garage associated with the qualifying dwelling, regardless of whether that garage is attached or detached.
Can an Indiana mobile home receive homestead deduction?
Yes, qualifying mobile and manufactured homes can receive homestead benefits. Special rules apply when the home is not assessed as real property.
Can a house owned by a trust receive Indiana homestead deduction?
Potentially. Indiana provides qualifying trust arrangements where the occupant has the required beneficial interest or qualifying right of occupancy and otherwise satisfies the homestead rules.
Can an LLC-owned Indiana house receive homestead deduction?
Entity ownership is not automatically eligible. Indiana Code contains specific requirements for residences owned by corporations, partnerships, LLCs or other entities. Ask the county auditor to review the ownership structure before relying on the deduction.
Can a married couple have two Indiana homestead deductions?
Generally an individual or married couple cannot claim separate homestead deductions on multiple unrelated properties for the same year. Indiana law contains limited exceptions and transition rules, so unusual separate-residence situations should be reviewed by the county auditor.
What happens to my Indiana homestead deduction when I move?
Indiana provides a transition rule when a homeowner leaves one Indiana principal residence after the assessment date and establishes another later in the same year. The old deduction can remain for that tax cycle while the new residence may qualify, with the old deduction removed for the next assessment date.
What happens if I keep an Indiana homestead deduction after becoming ineligible?
You must notify the county auditor within the required period when eligibility ends. Indiana law can require repayment of additional property taxes and penalties, including a 10% civil-penalty component in applicable improper-claim situations.
Is Indiana’s homestead property-tax cap always exactly 1%?
The base circuit-breaker cap for qualifying homestead property is generally 1% of gross assessed value. Voter-approved referendum taxes and certain statutory adjustments can be outside or added to the base cap, so a final bill can exceed a simple 1% calculation.
Why is my neighbor’s Indiana property-tax bill lower than mine?
Two similar homes can have different assessed values, taxing districts, homestead eligibility, other deductions, local credits, referendum obligations and circuit-breaker effects. Compare the complete TS-1 calculation rather than only the home’s market value.
Does Indiana still have a mortgage property-tax deduction?
No. Indiana’s former Mortgage Deduction no longer applies beginning with tax bills in the 2023 Pay 2024 cycle. Older websites that instruct homeowners to apply for the former mortgage deduction may be outdated.
Who should I contact if my Indiana homestead deduction is missing?
Contact the county auditor for the county where the property is located. The auditor administers deductions and credits and can confirm whether the HC10 or Sales Disclosure application was received and applied.
Primary-source research
Official Indiana Homestead Deduction Sources
The guidance above consolidates current Indiana DLGF forms, 2025–2026 legislative guidance, tax-bill documentation and state property-tax reports. Use the links below for the current form, local filing and final verification.
Indiana Department of Local Government Finance
Indiana Government Center North
100 North Senate Avenue, N1058(B)
Indianapolis, IN 46204
Phone: (317) 232-3777
Toll-free: (888) 739-9826
Email: Support@dlgf.in.gov
For an individual homestead application, however, contact your county auditor first.
This guide distinguishes Indiana’s Homestead Standard Deduction from the Supplemental Homestead Deduction, Supplemental Homestead Credit and 1% circuit-breaker cap. It also distinguishes the assessment year from the year taxes are paid—a distinction that is essential because Indiana’s standard and supplemental deduction amounts are changing annually.
County filing interfaces, ownership facts, parcel classifications and eligibility decisions can differ. Verify an individual parcel with the county auditor and use the current DLGF form before filing.
Independent Indiana Property-Tax Guide: This website is an independent educational resource. It is not operated by, affiliated with or endorsed by the Indiana Department of Local Government Finance, a county auditor, county assessor, county treasurer, Indiana General Assembly or another government agency.
This page explains publicly available Indiana homestead property-tax rules and official procedures. It does not determine whether a specific taxpayer or parcel qualifies, calculate an official property-tax bill or provide legal or tax advice. Verify consequential information with the county auditor responsible for the property.