Submitted by Hamilton County Auditor’s Office
Recent changes in state law have updated several property tax deductions, converting them into credits. For those who are already receiving a deduction that has been transitioned to a credit, no action is required. Our office will handle that transition automatically.
However, if you did not qualify for a deduction before but now meet the new credit requirements, you will need to submit an application.
The most notable change involves the Over-65 Deduction, which has been converted to the Over-65 Credit. Unlike the former deduction, which reduced taxable property value, the new credit directly lowers your tax bill by up to $150 each year. To qualify, applicants must be at least 65 by Dec. 31 of the prior year, hold an ownership interest in the property, and meet income requirements of $60,000 or less for individuals or $70,000 or less for married couples. Proof of age and income is required, and applications must be submitted by Jan. 15 of the year before taxes are due.
The Blind/Disabled Deduction has also been converted into a credit. The new Blind/Disabled Credit provides a $125 reduction in tax liability and no longer has an income limitation. Applicants must have an ownership interest in the property and provide proof of blindness or disability, most commonly through Social Security Disability paperwork. As with the Over-65 Credit, applications must be filed by Jan. 15 of the year before taxes are due.
A new Supplemental Homestead Credit has also been introduced. This credit, which does not replace but is in addition to the Standard Homestead Deduction, equals 10 percent of your tax liability up to a maximum of $300 each year. For example, if your annual tax bill is $2,757, the credit would reduce your liability by $275.70. If your liability is $6,632, the maximum $300 credit would apply. This credit will be applied automatically to qualifying parcels for those already approved for the Standard Homestead Deduction.
The Standard Homestead Deduction itself will gradually decrease over the next several years, while the supplemental percentage increases. In 2025 (payable in 2026) the deduction will be $48,000 with a supplemental percentage of 40 percent. By 2030 (payable in 2031) the deduction will be eliminated entirely, but the supplemental percentage will increase to 66.7 percent. Combined with the new Supplemental Homestead Credit, this gradual shift is designed to ease tax liability over time.
It is important to note that Disabled Veterans Deductions remain unchanged. Veterans may continue to apply for these deductions with proof of service and disability, such as a DD-214 and a VA Award Letter or Certificate of Eligibility.
All applications must be filed with the Auditor’s Office by Jan. 15 of the year before taxes are due. For example, to receive a credit or deduction for taxes payable in 2026, an application must be submitted by Jan. 15, 2026. Applications may be filed in person at the Hamilton County Auditor’s Real Property Department, located on the first floor of the Historic Courthouse in Noblesville. The office is open Monday through Friday from 8 a.m. to 4:30 p.m., and no appointment is necessary. Most applications can be filed in person, and some are also available online.
For questions about applying or eligibility, taxpayers may contact the Real Property Team at (317) 770-4412. For help understanding the impact of these changes and how they affect tax calculations, the Adjustments Team is available at (317) 770-8861.
