Tax Exemptions

Exemptions

Property Tax Exemptions
The auditor’s office is the keeper of each owner’s deductions for property taxes. The public may sign up for any exemptions that they qualify for in the auditor’s office, where it will be placed on their property taxes before taxation.

Property Tax Deductions for Homeowners & the Elderly
A homeowner or an individual over the age of 65 is eligible for certain deductions in the assessed value of his or her real property based on meeting the qualifications found in the Indiana Code, and as described in this brochure. All deduction applications are filed on or before May 10 of the assessment year, with the county auditor where the property is located.

 Homestead Eligibility Requirements

  • A person's primary place of residence and not a secondary home such as a vacation home 
  • A residence a person either pays the property tax for or a residence a person is buying under a contract that states he or she will pay the property taxes for
  • A dwelling and the land (not exceeding one acre) that surrounds it
  • A person who resides in the property must also have their name on the deed or title

A person regardless of age who either owns or is buying a homestead is entitled to a credit against his or her property taxes. The amount of the credit is determined by multiplying the homestead percentage of credit (1998 through 2001 10%, 2002 and thereafter 4%) by the amount a person owes in property taxes on the homestead portion of their property tax bill. In addition, a person who qualifies for a homestead credit also receives a standard deduction of one-half of the assessed value of the real property or mobile home. The deduction is subtracted from the homestead assessed value before the taxes are calculated. 

Resources: Homestead Standard Deduction Checklist

 Blind or Disabled Deduction Requirements

Resources: Blind or Disabled Deduction Checklist

 65 and Older Eligibility Requirements
An individual 65 years of age on or before December 31 of the calendar year preceding the year the deduction is claimed is eligible for a deduction of $12,480 from the assessed value of real property on which he or she currently resides if they meet the following qualifications: 

  • The combined adjusted gross income of the individual and his or her spouse or other persons with whom the property is being shared or purchased did not exceed $25,000 for the preceding calendar year
  • The individual has owned the property for at least one year
  • The assessed value of the real property did not exceed $182,400
  • The individual receives no other property tax deduction for the same year the individual applies for this deduction, with the exception of the mortgage and standard deductions

Mobile Home Owners
Mobile home owners may also qualify for the age 65 deduction in the amount of the lesser of one-half of the assessed value of the mobile home or $3,000. Mobile home owners must meet the four qualifications listed above for real property owners. 

Deceased Individuals
This deduction is also available to surviving spouses of deceased individuals who were at least 65 years old at the time of death if the surviving spouse is at least 60 years of age on or before December 31 of the year preceding the year being claimed, and has not remarried. Only one age 65 deduction per piece of real property or mobile home is allowed.

Resources: Over 65 Deduction Checklist

 Mortgage Deduction Eligibility Requirements
A person who has a mortgage may also receive a deduction. Any person regardless of age qualifies for a deduction from: 

  • The assessed value of mortgaged real property he or she owns
  • The assessed value of mortgaged real property he or she is buying under a contract that states he or she will pay the property taxes on the real property

The amount of the deduction from an assessed value a person may receive is $3,000. On mobile homes it is up to one-half of assessed value if the value does not succeed $6,000. 

Resources: Mortgage Deduction Checklist

 Over 65 Circuit Breaker Credit Eligibility Requirements
In 2008, there was a new age exemption that was offered by the state. This credit is only available for the property of real property on which he or she currently resides if they meet the following qualifications:

  • The combined adjusted gross income of the individual and his or her spouse or other persons with whom the property is being shared or purchased did not exceed $40,000 for the preceding calendar year; $30,000 for individual filings
  • The individual has owned the property for at least one year
  • The assessed value of the real property did not exceed $160,000
  • The individual receives no other property tax deduction for the same year the individual applies for this deduction, with the exception of the mortgage and standard deductions and the age deduction from assessed value


Resources: Over 65 Circuit Breaker Credit Checklist

 Veterans Deduction Eligibility Requirements
A person who is a disabled veteran is eligible to file a veteran’s exemption. The requirements include:

  • Totally disabled veteran (or veteran at least age 62 with at least 10% disability) or surviving spouse will receive $12,480 from assessed value
  • Partially disabled veteran (at least 10% disability connected to service) or surviving spouse

To apply for this exemption you must bring in a Form 20-5455 from the veterans office. Any remaining value that is left after the deduction from real estate taxes is available for use toward the purchase of license plates. 

Resources:

 

 

Auditor's Office

Staci Eglen (812) 358-6161 email