Indiana offers more than a dozen property tax deductions and exemptions. Most property owners qualify for at least two or three, yet many only claim one — or none. Every unclaimed deduction is money left on the table.
This is the complete list of every deduction and exemption available to Indiana property owners, with eligibility requirements, amounts, and instructions for claiming each one.
Deductions (Reduce Your Assessed Value)
Deductions lower your net assessed value, which reduces the base your tax rate is applied to. The more deductions you claim, the lower your taxable value.
1. Standard Homestead Deduction
Amount: The lesser of $48,000 or 60% of assessed value
Eligibility: You must own and occupy the property as your primary residence. Only one homestead deduction per person in Indiana.
How to apply: File Form HC-10 with your county auditor by January 5. See our complete homestead exemption guide for details.
This is the single largest deduction available. If you own your home and haven't filed, do it immediately.
2. Supplemental Homestead Deduction
Amount: 35% of assessed value remaining after the standard homestead deduction (up to $600,000), plus 25% of any value above $600,000
Eligibility: Automatic if you have the standard homestead deduction
How to apply: Applied automatically by the county auditor. No separate filing required.
Combined with the standard deduction, this can cut your taxable value nearly in half. For a $200,000 home, the total homestead deductions reduce taxable value from $200,000 to approximately $98,800.
3. Mortgage Deduction
Amount: The lesser of $3,000 or the remaining balance on your mortgage as of December 31 of the prior year
Eligibility: You must have a mortgage on the property. The property must also have the homestead deduction.
How to apply: File Form HC-10 (same form as homestead) or a separate mortgage deduction form with your county auditor.
The savings are modest ($60-$90/year at typical tax rates) but it's free money. If you have a mortgage, claim it.
4. Over-65 Deduction
Amount: The lesser of $14,000 or half of your assessed value (after the homestead deduction)
Eligibility:
- Age 65 or older by December 31 of the assessment year
- Property must have the homestead deduction
- Combined adjusted gross income (you and spouse) of $40,000 or less
- Assessed value of $240,000 or less
How to apply: File the Over-65 Deduction Application with your county auditor. Annual income verification may be required.
This is significant for qualifying seniors — it can reduce the tax bill on a modest home by $200-$400 per year, on top of the homestead deductions.
5. Over-65 Circuit Breaker Credit
Amount: Additional tax credit that further reduces bills beyond the standard 1% circuit breaker
Eligibility:
- Age 65 or older
- Combined adjusted gross income of $30,000 or less
- Assessed value of $200,000 or less
How to apply: File with your county auditor. This is separate from the over-65 deduction.
6. Blind or Disabled Deduction
Amount: The lesser of $12,480 or half of assessed value
Eligibility:
- Legally blind or disabled
- Property must have the homestead deduction
- Combined adjusted gross income of $17,000 or less
How to apply: File with your county auditor with documentation of disability status.
7. Disabled Veteran Deduction
Amount: Up to $24,960 (or the full assessed value for 100% disabled veterans)
Eligibility:
- Veteran with service-connected disability rated by the VA
- Partially disabled: deduction of $24,960
- Totally disabled (100%): deduction of the entire assessed value (property tax free)
How to apply: File with your county auditor with VA disability documentation.
For 100% disabled veterans, this effectively eliminates property taxes entirely. This is one of Indiana's most generous veteran benefits.
8. Surviving Spouse of a Veteran
Amount: Same as the disabled veteran deduction the deceased veteran would have received
Eligibility: Unremarried surviving spouse of a veteran who died during service or from a service-connected condition
How to apply: File with your county auditor with VA documentation.
9. Solar Energy System Deduction
Amount: The assessed value attributable to the solar energy system (essentially, the system is assessed at $0)
Eligibility: Any property with a solar energy heating or cooling system or other renewable energy system
How to apply: File with your county assessor. The assessor excludes the value of the solar system from the property's assessed value.
This means adding solar panels to your home increases your energy production but does not increase your property tax assessment. A strong incentive for solar adoption. Relevant for homeowners considering solar — see our Solar & Home Services product for solar suitability data.
10. Geothermal Energy System Deduction
Amount: The assessed value attributable to the geothermal system
Eligibility: Any property with a geothermal heating or cooling system
How to apply: File with your county assessor.
Similar to the solar deduction — the geothermal system is assessed at $0, removing any property tax penalty for the upgrade.
11. Wind Power Device Deduction
Amount: The assessed value attributable to the wind power device
Eligibility: Any property with a wind power device
How to apply: File with your county assessor.
12. Fertilizer Storage Deduction
Amount: Assessed value of fertilizer storage improvements
Eligibility: Agricultural properties with qualifying fertilizer storage structures
How to apply: File with your county assessor.
Exemptions (Remove Property from Tax Rolls)
Exemptions completely remove a property (or portion) from the tax rolls. These are typically available only to qualifying organizations, not individuals.
Religious Exemption
Properties owned and used for religious purposes — churches, mosques, synagogues, temples — are exempt from property taxes.
Charitable Purpose Exemption
Properties owned by qualifying 501(c)(3) organizations and used exclusively for charitable purposes may be fully exempt.
Educational Institution Exemption
Properties owned by qualifying educational institutions and used for educational purposes are exempt.
Government Property Exemption
Property owned by federal, state, or local government entities is exempt.
Cemetery Exemption
Property used exclusively as a cemetery is exempt.
How to Verify Your Deductions
Check your property tax bill to confirm all applicable deductions are listed. If you're unsure what deductions you're currently receiving:
- Review your property tax statement — deductions are listed as line items reducing your gross assessed value
- Use AribaTax's Property Lookup to see your current assessment details
- Contact your county auditor's office to confirm what deductions are on file
If you're missing a deduction you should be claiming, file the appropriate form immediately. Most deductions take effect for the following year's taxes.
Deductions Don't Fix Over-Assessment
Deductions reduce your tax bill, but they don't address the underlying question: is your assessed value correct? If your home is assessed at $250,000 but comparable sales suggest it should be $220,000, no amount of deductions compensates for the $30,000 excess assessment.
Before focusing solely on deductions, verify that your assessment reflects market value. Our Tax Appeal Automation product analyzes your property against comparable sales and can file a Form 130 appeal if the evidence supports a lower assessment.
The smart strategy: claim every deduction you qualify for AND ensure your assessment is accurate. The combination minimizes your tax bill from both directions.
Related Tax Information
- How Indiana property tax assessments work
- Indiana homestead exemption deep dive
- When property taxes are due
- Property tax rates by county
- How to appeal your assessment
Find Your County
File deduction applications with your county auditor. Find your county:
- Marion County — Indianapolis
- Hamilton County — Carmel, Fishers
- Allen County — Fort Wayne
- Lake County — Gary, Hammond
- St. Joseph County — South Bend
- Vanderburgh County — Evansville