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INDIANA PROPERTY TAX BENEFITS State Form 51781 (R20 / 8-25) Prescribed by the Department of Local Government Finance THIS FORM MUST BE PRINTED ON GOLD OR YELLOW PAPER Listed below are certain deductions and credits that are available to reduce a taxpayer’s property tax liability. Taxpayers can apply for these benefits by filing the appropriate application with the auditor in the county where the property is located. Applications for these deductions or credits must be completed, signed, and filed on or before January 15 of the calendar in which the property taxes are first due and payable, unless otherwise noted. If an application is mailed, it must be postmarked on or before the last day for filing. When acquiring a property, taxpayers should evaluate any current deductions or credits associated with it. Approved deductions or credits will appear on the tax bill the year following the assessment date. For additional information on these and other deductions and credits, please consult IC 6-1.1. This form should be returned to the customer. The closing agent may photocopy this signed form for his or her records. This form is not considered an application for any of the listed property tax deductions or credits and does not need to be submitted by the customer to the Department of Local Government Finance or the county auditor. DEDUCTION OR CREDIT (Indiana Code Cite) MAX AMOUNT ELIGIBILITY REQUIREMENTS APPLICATION FORM RESTRICTIONS Homestead Standard Deduction (IC 6-1.1-12-37) For the assessment dates after December 31, 2024 in the following years, the total amount of the deduction is: in 2025, $48,000; in 2026, $40,000; in 2027, $30,000; in 2028, $20,000; in 2029, $10,000; 1) Residential real property improvements (including a house or garage) located in Indiana that an individual uses as the individual’s principal residence, including a mobile or manufactured home not assessed as real property; 2) On the assessment date (January 1) or any date in the same year after an assessment date when an application is filed, one of the following must be true: applicant owns; is buying under a contract that provides that the applicant is to pay the property taxes and that obligates the owner to convey title to the individual when the individual completes his contractual obligations; or applicant is entitled to occupy property as a tenant stockholder of a cooperative housing corporation; or applicant is an individual as described in IC 6-1.1-12-17.9 and the residence is owned by a trust as described in IC 6-1.1-12-17.9. 3) May consist of: a dwelling and a garage; up to one acre of land immediately surrounding the dwelling; any number of decks, patios, gazebos, or pools; one additional residential yard structure; and one additional building that is not part of the dwelling but predominantly used for a residential purpose and is not used as an investment or rental property. 4) One standard deduction per married couple or individual (spouses who each independently own and maintain separate homesteads in different states may each be able to have a homestead deduction [see IC 6-1.1-12-37(l)]); 5) Where a person or married couple moves from one homestead after the assessment date to another homestead in the same tax cycle, the person or married couple may be able to receive a homestead deduction on both properties for just Sales Disclosure Form (State Form 46021) or Homestead Deduction Form (Form HC10) (State Form 5473). One form is filed for both the Homestead Standard Deduction and Supplemental Homestead Deduction. If more than one individual or entity qualifies property as a homestead for an assessment date, only one homestead standard deduction may be applied to the property for that assessment date. Beginning with the 2030 assessment date and each assessment date thereafter, that tax cycle (see IC 6-1.1-12-37(i)); 6) Even if, as of the assessment date, the land is vacant or the dwelling incomplete, the property may still qualify for a homestead deduction (see IC 6-1.1-12-37(n)); 7) Complete, sign, and file with the county auditor and satisfy any recording requirements, both on or before January 15 of the calendar year in which the property taxes are first due and payable. An individual who changes the use of his homestead property and fails to file a certified statement with the auditor notifying the county of the change of use within 60 days after the date of the change is liable for any taxes that would have been due on the property if the deduction had not been in place, plus a civil penalty equal to 10% of the additional taxes due. NOTE: A change in use of or title to a property may disqualify it for a homestead deduction or require the deduction to be re-filed. Page 1 of 4 ---PAGE BREAK--- INDIANA PROPERTY TAX BENEFITS DEDUCTION OR CREDIT (Indiana Code Cite) MAX AMOUNT ELIGIBILITY REQUIREMENTS APPLICATION FORM RESTRICTIONS Supplemental Homestead Deduction (IC 6-1.1-12-37.5) Equal to the assessed value of property reduced by the homestead standard deduction multiplied by the following: 40% for taxes first due and payable in 2026. 46% for taxes first due and payable in 2027. 52% for taxes first due and payable in 2028. 57% for taxes first due and payable in 2029. 62% for taxes first due and payable in 2030. 66.7% for taxes first due and payable in 2031. An individual who is entitled to a homestead standard deduction from the assessed value of property under IC 6-1.1-12-37 also is entitled to receive a supplemental homestead deduction from the assessed value of the homestead to which the standard deduction applies after the application of the standard deduction but before the application of any other deduction, exemption, or credit for which the individual is eligible. Sales Disclosure Form (State Form 46021) or Homestead Deduction Form (Form HC10) (State Form 5473). One form is filed for both the Homestead Standard Deduction and Supplemental Homestead Deduction. The amount of this deduction may not exceed the amount equal to seventy-five percent (75%) of the gross assessed value of the property (see IC 6-1.1 12-37.5(c)). This deduction must not be considered in applying the limits in IC 6-1.1-12 40.5, which states that the sum of the deductions provided to an annually assessed personal property mobile home or manufactured home may not exceed one-half of its assessed value. Heritage Barn Deduction (IC 6-1.1-12-26.2) 100% of the assessed value of the structure and foundation of the heritage barn. 1) Available only for a mortise and tenon barn that on the assessment date was constructed before 1950 and retains sufficient integrity of design, materials, and construction to clearly identify the building as a barn. 2) Applicant must own or be buying the property under a contract that meets the criteria of IC 6-1.1-12-26.2(a)(3)(B) and complete, sign, and file the application on or before December 31 preceding the year in which the deduction will first be applied. Heritage Barn Deduction Form (State Form 55706) The barn cannot be used as a dwelling. The county may impose a public safety fee of up to fifty dollars ($50) for each heritage barn for which the applicant receives a heritage barn deduction. Blind or Disabled Credit (IC 6-1.1-51.3-2) $125 1) Blind: Applicant is blind as defined in IC 12-7-2-21(1); or Disabled: Applicant is “disabled” if unable to engage in any substantial gainful activity by reason of a medically determinable physical or mental impairment that can be expected to result in death or has lasted or can be expected to last for a continuous period of not less than 12 months; 2) The real property or mobile or manufactured home not assessed as real property is principally used and occupied by the applicant as the applicant’s residence; 3) Applicant must own or be buying under contract the real property or mobile or manufactured home on the date the application is filed (and contract or a memorandum of contract is recorded in the county recorder’s office); Blind – State Form 43710 Proof of Blindness: The records of the Division of Family Resources or the Division of Disability and Rehabilitative Services or the written statement of a physician who is licensed by this State and skilled in the diseases of the eye or of a licensed optometrist. Disabled – State Form 43710 Proof of Disability: Proof that the applicant is eligible to receive disability benefits under the federal Social Security Act. However, an An individual who has sold real property to another person under a contract that provides that the contract buyer is to pay the property taxes on the real property may not claim the credit against that real property. 4) Complete, sign, and file application with the county auditor on or before January 15 of the calendar year in which the property taxes are first due and payable. applicant with a disability not so covered must be examined by a physician under the same standards as used by the Social Security Administration. Page 2 of 4 ---PAGE BREAK--- INDIANA PROPERTY TAX BENEFITS DEDUCTION OR CREDIT (Indiana Code Cite) MAX AMOUNT ELIGIBILITY REQUIREMENTS APPLICATION FORM RESTRICTIONS Over 65 Credit $150 Note: If any of the applicant’s joint 1) Applicant must own or be buying under contract the real property or mobile or manufactured home not assessed as real property on the date the application is filed; 2) Applicant is at least 65 on or before December 31 of the year preceding the year in which the credit is claimed; 3) For the calendar year preceding by two years the calendar year in which the property taxes are first due and payable, the federal adjusted gross income of: an individual who filed a single return, does not exceed $60,000; an individual who filed a joint return, does not exceed $70,000; or an individual and all other individuals that share ownership as joint tenants or tenants in common, does not exceed $70,000; 4) Applicant has owned the real property or mobile home or manufactured home for at least one year State Form 43708. Internal Revenue Service Form 1040 for the calendar year preceding by two years the calendar year An individual who has sold real property to another person under a contract that provides that the contract buyer is to pay the property taxes on the real property may not claim the credit against that real property. (IC 6-1.1-51.3-1) tenants or tenants in common (other than a spouse) are not at least 65, the credit allowed must be reduced. before claiming the credit; or applicant has been buying the real property, mobile home, or manufactured home under a contract that provides that the individual is to pay the property taxes on the real property, mobile home, or manufactured home for at least one year before claiming the credit, and the contract or a memorandum of the contract is recorded in the county recorder’s office; 5) Surviving, un-remarried spouse at least 60 on or before December 31 of the year preceding the year in in which the property taxes are first due and payable. This requirement includes submitting Form 1040 for the applicant and all If real property, a mobile home, or a manufactured home is owned by: 1) tenants by the entirety; which the credit is claimed if deceased was 65 at the time of death may qualify; 6) Individual may not be denied the credit because the individual is absent from the real property or mobile or manufactured home while in a nursing home or hospital; 7) Complete, sign, and file application with the county auditor on or before January 15 of the calendar year in which the property taxes are first due and payable. co-owners. 2) joint tenants; or 3) tenants in common; only one Over 65 Credit may be allowed. Over 65 Circuit Breaker Credit (IC 6-1.1-20.6-8.5) Prevents property tax liability on qualified homestead property from increasing by more than 2% over the previous year’s tax liability. 1) Applicant qualified for homestead standard deduction in preceding calendar year and qualifies in current year (or is an eligible surviving spouse); 2) For the calendar year preceding by two years the calendar year in which the property taxes are first due and payable, the federal adjusted gross income of: an individual who filed a single return, does not exceed $60,000; or an individual who filed a joint return with the individual's spouse, does not exceed $70,000 [all income amounts are adjusted annually by an amount equal to the percentage cost of living increase applied for Social Security benefits for the immediately preceding calendar year]***; 3) Applicant is or will be at least 65 on or before December 31 of the calendar year immediately preceding the current calendar year; 4) File in same manner as for Over 65 Credit. State Form 43708. Internal Revenue Service Form 1040 for the calendar year preceding by two years the calendar year in which the property taxes are first due and payable for applicant and spouse. None. Deduction for Veteran with Service- Connected Disability (IC 6-1.1-12-13, 15) $24,960* 1) Applicant must own or be buying under contract the real property or mobile or manufactured home not assessed as real property on the date the application is filed (and contract or a memorandum of contract is recorded in the county recorder’s office); 2) Applicant received an honorable discharge after serving in U.S. military or naval forces during any of its wars; 3) Applicant has service-connected disability of at least 10%; 4) Complete, sign, and file application with the county auditor on or before January 15 of the calendar year in which the property taxes are first due and payable. 5) Surviving spouse of a veteran may receive this deduction if the veteran satisfied the above eligibility requirements at the time of death and the surviving spouse owns or is buying the property under contract at the time the deduction application is filed. The surviving spouse is entitled to the deduction regardless of whether the property for which the deduction is claimed was owned by the deceased veteran or the surviving spouse before the deceased veteran’s death. State Form 12662. Pension Certificate, Award of Compensation, or disability compensation check from VA or IDVA; or Certificate of Eligibility issued by IDVA. Surviving spouse must provide the documentation necessary to establish that at the time of death the deceased veteran satisfied the eligibility requirements. A person may claim this deduction with all other deductions EXCEPT the Deduction for Homestead Donated to Veteran. Page 3 of 4 ---PAGE BREAK--- INDIANA PROPERTY TAX BENEFITS DEDUCTION OR CREDIT (Indiana Code Cite) MAX AMOUNT ELIGIBILITY REQUIREMENTS APPLICATION FORM RESTRICTIONS Deduction for Totally Disabled Veteran or Veteran at Least 62 with Disability of 10% $14,000* 1) Applicant must own or be buying under contract the real property or mobile or manufactured home not assessed as real property on the date the application is filed (and contract or a memorandum of contract is recorded in the county recorder’s office); 2) Applicant served in U.S. military service for at least 90 days and was honorably discharged; 3) Applicant is either totally disabled or at least 62 with at least 10% disability; 4) Assessed value of applicant’s Indiana real property and/or Indiana mobile or manufactured home not assessed as real property is not greater than $240,000. State Form 12662. Pension Certificate or Award of Compensation from VA; or Certificate of Eligibility issued by IDVA. A person may claim this deduction with all other deductions EXCEPT the or More (IC 6-1.1-12-14, 15) 5) Complete, sign, and file application with the county auditor on or before January 15 of the calendar year in which the property taxes are first due and payable. 6) Surviving spouse of a veteran may receive this deduction if the surviving spouse owns or is buying the property under contract at the time the deduction application is filed and if: the veteran satisfied the above eligibility requirements at the time of death; or the veteran was killed in action, died while serving on active duty, or died while performing inactive duty training. The surviving spouse is entitled to the deduction regardless of whether the property for which the deduction is claimed was owned by the deceased veteran or the surviving spouse before the deceased veteran's death. Surviving spouse must provide the documentation necessary to establish that at the time of death the deceased veteran satisfied the eligibility requirements. Deduction for Homestead Donated to Veteran. Deduction for Homestead Donated to Veteran (IC 6-1.1-12-14.5) Varies based on amount of veteran’s disability; at least 50% and up to 100% of the assessed value of the homestead. 1) Applicant served in the military or naval forces of the U.S. for at least ninety (90) days; received an honorable discharge; has a disability of at least 50%; and the homestead was conveyed without charge to the individual who is the owner of the homestead by an organization that is exempt from income taxation under the federal Internal Revenue Code. 2) Complete, sign, and file application with the county auditor on or before January 15 of the calendar year in which the property taxes are first due and payable. State Form 12662. Pension Certificate or Award of Compensation from VA; or Certificate of Eligibility issued by IDVA. A person may claim this deduction with all other deductions EXCEPT the Totally Disabled Veteran Deduction and the Veteran with Service-Connected Disability Deduction. *Any unused portion of the deduction may be applied to personal property taxes and then to excise taxes for either a motor vehicle (IC 6-6-5-5) or an aircraft (IC 6-6-6.5-13). NOTE: For registration years beginning after December 31, 2013, IC 6-6-5-5.2 enables veterans who do not own or are not buying property under contract (or their surviving spouses) to receive a credit toward vehicle excise taxes if they otherwise satisfy the requirements for a veteran deduction under IC 6-1.1-12-13 or 14. The amount of the credit that may be claimed is equal to the lesser of the amount of the excise tax liability for the individual’s vehicle or $70. This credit must be claimed on a form prescribed by the Bureau of Motor Vehicles. An individual claiming the credit must attach to the form an affidavit from the county auditor stating that the claimant does not own property to which a property tax deduction may be applied under IC 6-1.1-12-13 or 14. Special note regarding members of the armed forces: Effective July 1, 2014, active military personnel transferred to a location outside of Indiana may be able to retain their homestead deduction during their absence. See IC 6-1.1-12-37(q) for more information. The sum of the deductions applied to a mobile home or a manufactured home not assessed as real property may not exceed one-half of the assessed value of the mobile home or manufactured home (see IC 6 1.1-12-40.5). This restriction does not apply to the Supplemental Homestead Deduction. The income threshold adjustment for the applicable year can be located at: Deduction and credit application forms are available at the county auditor’s office or at: By signing below, customer acknowledges receipt of the Indiana Property Tax Benefits Form. Signature of Customer Verification Name (print) Date (month, day, year) Page 4 of 4