Indianapolis Homeowners: Homestead Deductions, the Over-65 Credit and the Circuit Breaker
Indiana keeps changing how it trims homeowners' property tax bills. The homestead deduction is shrinking a little each year, a new supplemental credit took its place on 2026 bills, and age 65 is now handled with credits instead of a deduction. In Indianapolis, all of it runs through one office, the Marion County Auditor, and one date, January 15. Here's what each benefit does and how to file.
AT A GLANCE
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Deductions and credits are not the same thing
Indiana uses two kinds of property tax relief, and the difference explains why some changes you see on your bill are bigger than others.
A deduction lowers the assessed value that gets taxed. The homestead standard deduction is the main one. A credit comes off the tax itself, after it's calculated. The $150 Over 65 Credit is a credit, so it's worth exactly $150 no matter what your tax rate is.
Your bill also lists them in different places. The Indiana tax bill form (TS-1A) lists the Over 65 Credit, the Blind/Disabled Credit, the Supplemental Homestead Credit, the Over 65 Circuit Breaker Credit and county-option credits as separate "Tax Relief Credits" lines. If you think a benefit is missing, compare those lines with the year before.
Under Indiana's constitution, tax on a homestead is also capped at 1% of its value. Taxes approved by voters in a referendum can go above that cap.
The benefits every homeowner should have
Homestead standard deduction (shrinking)
This is the base deduction for your main home. It covers the house, up to one acre around it, decks, patios and similar improvements, and one extra building used mainly as part of the home and not rented out. The state homestead form, Form HC10 (State Form 5473), shows the deduction stepping down by assessment year:
Assessment year | Homestead standard deduction |
|---|---|
2025 | $48,000 |
2026 | $40,000 |
2027 | $30,000 |
2028 | $20,000 |
2029 | $10,000 |
2030 and later | $0 |
Indiana bills are paid the year after the assessment date. So the 2026 assessment shows up on the bill you pay in 2027 ("2026 pay 2027").
Supplemental homestead deduction (growing)
This deduction is a percentage of the home's value that's left after the standard deduction. The state benefits summary (State Form 51781) lists 40% for pay 2026, 46% for pay 2027, 52% for pay 2028, 57% for pay 2029, 62% for pay 2030 and 66.7% for pay 2031. The two deductions together can't take off more than 75% of the home's gross assessed value. You claim both on the same form.
Supplemental homestead credit (new on 2026 bills)
The DLGF's tax bill form describes this credit as going to people who get the homestead standard deduction. It equals 10% of the homestead's tax or $300, whichever is less. DLGF's forms list has no separate application for it.
Here's an example we worked out from that rule: on a $2,000 homestead tax bill, 10% is $200, so the credit is $200. On a $4,000 bill, 10% would be $400, so the credit stops at $300.
"Taxpayers do not need to reapply for deductions or credits annually." (Indiana Department of Local Government Finance)
If you're 65 or older
Indiana gives two separate age-65 benefits. Both are on one form, State Form 43708, "Application for Senior Citizen Property Tax Benefits." You check a box for each one you want.
The $150 Over 65 Credit
According to State Form 43708 and the Auditor's page:
You must be 65 or older by December 31 of the year before the bill is due. A surviving spouse who hasn't remarried can qualify at 60 or older if the spouse who died was at least 65.
You must have owned the home, or been buying it on a recorded contract, for at least one year, and you must live there. Time in a nursing home or hospital doesn't count against you.
Adjusted gross income from two years before the bill year can't be more than $60,000 for a single return, or $70,000 for a joint return or for all co-owners combined. For example, the form uses 2024 income for 2026 bills.
If you co-own with someone other than your spouse who is under 65, the credit shrinks in proportion. Two co-owners with one under 65 would get half.
Property owned by an LLC, partnership or corporation doesn't qualify. Property in a qualified trust does.
The Auditor's web page describes the income limit as "for the prior year." The state form says the year two years before the bill. If your income changed recently, ask the Auditor which year they'll check.
The Over 65 Circuit Breaker Credit
This credit keeps your homestead tax from going up more than 2% over last year. If the bill would go up more, the credit covers the difference. Using the formula on State Form 43708: if last year's homestead tax was $2,000, this year's tax is limited to $2,040. If it would otherwise be $2,200, the credit is $160.
To qualify you need to:
Be 65 by December 31 of the year before the bill is due.
Have had the homestead standard deduction last year, and qualify for it again this year.
Meet an income limit that now rises each year with the Social Security cost-of-living increase.
Bill year | Single return | Joint return with spouse |
|---|---|---|
Pay 2024 | $32,610 | $43,480 |
Pay 2025 | $33,563.52 | $44,871.36 |
Pay 2026 | $60,000 | $70,000 |
Pay 2027 | $61,680 | $71,960 |
The Pay 2027 numbers come from an April 2026 DLGF memo to county auditors, which applies the 2.8% Social Security increase. The printed form still shows $60,000 and $70,000 and says the amounts change each year starting with Pay 2027. In the same memo, DLGF says a 2025 state law (SEA 1) raised the base limits to $60,000 and $70,000 for Pay 2026.
Riverside Neighborhood pilot (55 and older)
Marion County is running a pilot County Option Circuit Breaker for parts of the Riverside Neighborhood. It caps homestead tax increases at 4% for owners who are 55 or older, have lived in the home for 10 straight years, and had the homestead deduction this year and last year. You can't have it and the Over 65 Circuit Breaker at the same time. The Auditor's page says the pilot ends December 31, 2027, and you can file by email to AuditorCustomerService@indy.gov.
Disability, blindness and veterans
Benefit | Amount | Form | Key rules |
|---|---|---|---|
Blind or Disabled Credit | $125 credit | State Form 43710 | Proof of blindness or disability. Proof can be Social Security disability eligibility or a doctor's exam using SSA standards. |
Veteran with service-connected disability | $24,960 deduction | State Form 12662 | Honorable discharge after wartime service, and a service-connected disability of at least 10%. |
Totally disabled veteran, or 62+ with 10% disability | $14,000 deduction | State Form 12662 | At least 90 days of service, honorable discharge, and Indiana property assessed at no more than $240,000. |
Surviving spouses can claim both veteran deductions in many cases. Bring proof that the veteran met the rules at the time of death. For veterans, accepted proof includes a VA pension certificate, an award of compensation, or a Certificate of Eligibility from the Indiana Department of Veterans' Affairs (IDVA).
How to file in Marion County
Look up what you already have. The Auditor's "Search Current Deductions or Credits on Your Property" tool finds your parcel number and the status of each deduction. It may not show filings made in the last few weeks.
Pick your forms. Use Form HC10 for the homestead deductions, which you can also claim on the sales disclosure form when you buy. Use State Form 43708 for the age-65 credits, 43710 for blind or disabled, and 12662 for veterans.
File online if you can. The Auditor calls its digital service "the best way to file." After you file, you get an email with a confirmation number, and the Auditor says that email is the only receipt you'll get. Save it. "Pending" or "In-Process" means you've done your part.
Or file on paper. Deliver or mail it to the Marion County Auditor, 200 E. Washington St., Suite W-125, Indianapolis, IN 46204. A mailed form must be postmarked by January 15. Keep the stamped copy the Auditor gives back.
Allow time. The Auditor's office says it has until mid-February to approve applications filed by January 15.
For a mobile home, you need a Certificate of Title from the BMV with your name on the front as purchaser. A title signed over to you by the old owner doesn't count.
If you start renting out the home or move out, tell the Auditor within 60 days. The state form warns that if you don't, you'll owe the taxes the deduction saved you plus a 10% penalty.
Before you call
☐ Your parcel number, from the tax bill or the Auditor's deduction search
☐ Your deed or recorded contract, with the record and page numbers if you're buying on contract
☐ For the homestead form: the last five digits of your Social Security number, or your driver's license number if you don't have one, plus the same for your spouse
☐ For age-65 credits: your date of birth and your adjusted gross income from two years before the bill year (Form 1040)
☐ For the blind or disabled credit: your SSA award letter or a doctor's statement
☐ For veterans: your DD-214 and VA or IDVA disability paperwork
☐ A surviving spouse should also bring the death certificate
WHAT TO DO THIS WEEK
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More help in Indianapolis
Related guides
Official sources
Last checked: October 23, 2026. Amounts and rules come from DLGF's deductions page, the state forms listed above (State Form 51781 R20 8-25, Form HC10 R21 7-25, State Form 43708 R20 5-26 and State Form 43710 R15 7-25), DLGF's April 2026 Pay 2027 circuit breaker memo, and the Marion County Auditor's pages on indy.gov. The credit examples are our own arithmetic.
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