Automated Property Tax Credits for New Indiana Properties

Two officials who calculate property tax liability in Indiana say most homeowners won't need to do anything to qualify for tax credits under the state's new property tax law. Sadie Eldridge, real property, adjustment and settlement manager for the Hamilton County auditor's office, said any homeowner who has applied for the standard homestead deduction will receive a credit automatically.

The primary tax break in the new law is a credit for up to 10% of a homeowner's total tax liability after all deductions have been applied, to a maximum value of $300. The county auditors are responsible for calculating those deductions.

Any disabled veterans will still need to provide a copy of their DD-214 to apply for the disabled veteran deduction, while Hoosiers 65 and older will only need to provide proof they have an income less than $60,000 per year, or $70,000 per year for married couples.

Hamilton County Assessor Kevin Poore said a home's assessed value is determined by its sale price, square footage, condition, and materials used. Eldridge said the new property tax law discontinues property tax credits for geothermal and solar power systems, but the new tax credit system should offset that for most homeowners.

The new law phases out the standard homestead deduction by 2031 in favor of the supplemental deduction, which will be equal to two-thirds of a homeowner's assessed value once it's fully phased in. Eldridge said this deduction will also fluctuate because it's calculated as a percentage of a homeowner's assessed value.

“If homeowners already receive either of those credits, they will not need to reapply,” Eldridge said. “Homeowners should check with their county auditor to find out what they need to do, if anything.”