Indiana overhauled its senior property tax relief in 2025, replacing the old Over-65 Deduction with two new credits that every eligible homeowner 65 or older should apply for. This guide covers what changed, what the new credits pay, and exactly how to file before the January 15 deadline.
In This Guide
- What Changed in 2025
- The Over-65 Credit
- The Over-65 Circuit Breaker Credit
- The Homestead Standard Deduction and Supplemental Credit
- Indiana Senior Property Tax Relief at a Glance
- How to Apply for Indiana Senior Property Tax Relief
- Frequently Asked Questions
What Changed in 2025
Indiana's General Assembly passed Senate Enrolled Act 1 in 2025 and rewrote how the state protects senior homeowners from rising property taxes.
Before the Act, Indiana offered an Over-65 Assessed Value Deduction. That deduction was eliminated. In its place, the law created two new credits: the Over-65 Credit and the Over-65 Circuit Breaker Credit. Both apply starting with the 2025 pay-2026 tax year.
The shift from a deduction to a credit matters in practice. A deduction reduces the assessed value your tax is figured on. A credit reduces the actual tax bill dollar-for-dollar. For a senior with a modest home, the new credit structure is simpler and more predictable.
The Indiana Department of Local Government Finance administers these programs and publishes current eligibility rules and application instructions.
The Over-65 Credit
This is a flat $150 credit applied directly to your property tax bill each year.
To qualify, you must meet four requirements as of the tax year for which you are applying:
- You are 65 years old or older by December 31 of the preceding year.
- You have held an ownership interest in the property for at least one year.
- The property is your primary residence.
- Your adjusted gross income does not exceed $60,000 if filing single or $70,000 if filing jointly for the 2025 pay-2026 year.
The income thresholds are indexed to Social Security cost-of-living adjustments after 2025 pay-2026. For 2026 pay-2027, the limits rise to $61,680 (single) and $71,960 (joint).
A $150 credit may not sound large in the context of a full tax bill, but it is automatic once you apply, carries forward each year you remain eligible, and stacks with the other benefits described below.
The Over-65 Circuit Breaker Credit
This credit does something different: it puts a ceiling on how much your property tax bill can rise in a given year.
Specifically, the Circuit Breaker Credit prevents your total property tax liability on a qualifying homestead from increasing more than 2 percent above the prior year's tax liability. If assessed values jump or a local tax rate goes up, the Circuit Breaker absorbs the difference above that 2 percent cap.
The same age and income rules apply: you must be 65 or older by December 31 of the preceding year, with income at or below $60,000 single or $70,000 joint (COLA-indexed annually after 2025 pay-2026).
The practical effect: a senior who is house-rich but cash-poor will not face a tax shock in a hot real estate market. No matter what neighboring home sales do to assessed values, your bill cannot climb by more than 2 percent over the prior year.
This is the more powerful of the two new credits for most homeowners over time, because it compounds in your favor. If you had a low tax bill in a prior year, the 2 percent cap keeps future bills anchored to it.
The Homestead Standard Deduction and Supplemental Credit
These two benefits are available to all Indiana homeowners, not just seniors. But they are worth understanding because they layer on top of the senior-specific credits above.
Homestead Standard Deduction. For 2025 pay-2026, the deduction is $48,000 of assessed value. Your county calculates your property tax on the assessed value above that threshold, not the full value. Under Senate Enrolled Act 1, this deduction will phase down in later years, so the $48,000 figure applies specifically to 2025 pay-2026.
Supplemental Homestead Credit. Homeowners who receive the standard deduction also qualify for a credit equal to one-tenth of their total property tax liability, capped at $300 per year. This credit is automatic. You do not file separately for it; once the standard deduction is on file, the supplemental credit is applied when taxes are calculated.
If you already have the Homestead Standard Deduction in place from a prior year, the supplemental credit is already working for you.
Indiana Senior Property Tax Relief at a Glance
| Program | What it does | Who qualifies | How to claim |
|---|---|---|---|
| Over-65 Credit | $150 flat annual credit off your tax bill | Age 65+ by Dec 31, owned 1+ year, AGI $60K single / $70K joint | Apply at county auditor by January 15 |
| Over-65 Circuit Breaker Credit | Caps year-over-year tax increase at 2% | Same as Over-65 Credit: age, income, ownership requirements | Apply at county auditor by January 15 |
| Homestead Standard Deduction | Removes $48,000 of assessed value from tax calculation (2025 pay-2026; phases down in later years) | All homeowners occupying as primary residence | File with county auditor; stays on record once approved |
| Supplemental Homestead Credit | One-tenth of tax liability, max $300/year | Homeowners who receive the Standard Deduction | Automatic, no separate application |
How to Apply for Indiana Senior Property Tax Relief
Applications go to your county auditor, not the state. Indiana has 92 counties, and each auditor's office processes applications for that county.
The deadline is January 15 of the year in which the taxes are first due. For the 2025 pay-2026 year, that was January 15, 2026. Missing the deadline means waiting until the following year.
Steps to apply:
- Find your county auditor's office. Search your county name plus "auditor Indiana" to find contact information and office hours. Many offices accept applications by mail or in person.
- Gather your documents. You will typically need proof of age (a driver's license or birth certificate), proof of ownership (a deed or title), and documentation of your adjusted gross income (tax returns or a Social Security income statement).
- Submit the application for the Over-65 Credit and Circuit Breaker Credit. Ask specifically for both when you visit or call. These are separate from the Homestead Standard Deduction application.
- Confirm the Homestead Standard Deduction is already on file. If you've owned and occupied the property for some time, this deduction is likely already applied. Verify with the auditor.
Once approved, the senior credits carry forward each year you remain eligible. You do not reapply annually unless your eligibility changes, such as an income increase above the threshold.
If you are managing the finances of an elderly parent who owns a home, property tax relief is one of several tools that can reduce carrying costs. Understanding how home equity fits into the broader care picture, whether through staying put or eventually selling, is worth thinking through alongside these credits. Our guide on selling or renting your home for senior care covers that transition in detail.
Homeowners who want to stay in the home long-term might also consider how equity could fund future care needs. A reverse mortgage for senior care works differently from tax relief but addresses the same underlying problem: living on a fixed income while sitting on a valuable asset.
Frequently Asked Questions
Senate Enrolled Act 1 (2025) eliminated the old Over-65 Assessed Value Deduction and replaced it with two new programs: the Over-65 Credit (a flat $150) and the Over-65 Circuit Breaker Credit (a 2 percent annual cap on tax increases). The new rules took effect for the 2025 pay-2026 tax year.
No. Once the county auditor approves your application, the credits carry forward as long as you remain eligible. You would need to notify the auditor if your income rises above the threshold or if you move out of the property.
If your adjusted gross income exceeds $60,000 (single) or $70,000 (joint), you no longer qualify for either the Over-65 Credit or the Over-65 Circuit Breaker Credit. The thresholds are COLA-indexed annually, so the limits rise slightly each year. Check with your county auditor or the Indiana Department of Local Government Finance if you are close to the income limit.
Yes. The two credits stack. A qualifying homeowner receives both the $150 flat credit and the 2 percent cap on annual tax increases.
No, but the deduction amount will decrease in later years under Senate Enrolled Act 1. The $48,000 figure applies to the 2025 pay-2026 tax year. Future amounts will be lower, and the Indiana Department of Local Government Finance will publish updated figures as they take effect.
Yes. The requirement is that you be 65 or older by December 31 of the preceding year. So if you turned 65 at any point in the calendar year before the tax year in question, you meet the age requirement.
Eligibility depends on whether the surviving spouse meets the age and income requirements independently. The credits are tied to the individual homeowner, not the couple. If the surviving spouse is not yet 65 or exceeds the income limits, they would not qualify until they meet the requirements on their own. Confirm your specific situation with your county auditor.
Learn More
- Senior Property Tax Relief by State
- How to Pay for Senior Care
- Selling or Renting Your Home for Senior Care
- Reverse Mortgages for Senior Care
Find personalized help reducing your Indiana property tax bill at brevy.com.
The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.