Deductions for Taxpayers

Homestead Credit and Standard Deduction

(IC 6-1.1-20.9;IC 6-1.1-12-37)
An individual 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%, 2000 and thereafter 4%) by the amount a person owns in property taxes on the homestead portion of their property tax bill. In addition, an individual who qualifies for a homestead credit also receives a standard deduction of one-half (1/2) of the assessed value of the real property or $2000, whichever is less. The deduction is subtracted from the homestead assessed value before the taxes are calculated.

"Homestead" means and individual's principal place of residence which:

  1. is located in Indiana
  2. the individual either owns or is buying under a contract, recorded in the county recorder's office, that provides that his is to pay the property taxes on the residence: and
  3. consists of a dwelling and the real estate, not exceeding on (1) acre, that immediately surrounds that dwelling.

Mortgage Deductions

(IC 6-1.1-12-1)

A person who has a mortgage may also receive a deduction from the assessed value of mortgaged real property he or she owns or the assessed value of mortgaged real property he or she is buying under contract that states he or she will pay the property taxes on the real property. 

The total amount of the deduction from an assessed value a person may receive is: 

  1. the balance of the mortgage or contract indebtedness on the assessment date of that year
  2. on half (1/2) of the assessed value of the real property
  3. $1000, whichever is the lesser amount.

Deduction for Individuals Over the Age of 65
(IC 6.1.1-12-9)

An individual may obtain a deduction from the assessed value of the individual's real property, or mobile home which is not assessed as real property, if the individual is at least sixty-five (65) years of age on or before December 31, of the clendar year preceding the year in which the deduction is claimed. The combined adjusted growss income of the individual and the individual's spouse or the individual and all other individuals with whom the individual shares ownership or the individual is purchasing the property under a contract as joint tenants or tenants in common.

A surviving spouse is entitled to the deduction provided by this section if the surviving spouse is at least sixty (60) years of age on or before December 31 of the calendar year preceding the year in which the deduction is claimed and the surviving spouse's deceased husband or wife was at least sixty-five (65) years of age at the time of death provided the surviving spouse has not remarried.

Blind or Disabled Deduction
IC 6-1.1-12-11

To be eligible for the Blind or Disabled Deduction an individual must bring proof of blindness or disability when filing. The individual's income cannot exceed $17,000. If the assessment value is less than $2000, the amount will be the amount of your assessment.

Disabled Veterans Deduction
IC 6-1.1-12-14

An individual who owns property that is principally used as their residence and are a disabled veteran may be eligible for this deductions ranging from $2,000 to $6,000 in assessed value. Eligibility may be established by a pension certificate, an award of compensation, or a disability compensation check issued by the United States Department of Veterans Affairs.

Geothermal Deduction
IC 6-1.1-12-26

A property owner may be entitled to a deduction if they have geothermal heating and cooling systems in their home. In order to file for this deduction, a homeowner must obtain State form SES/WPD from the County Auditor's Office and filed between March 1 and May 10 for each year you desire the deduction.

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