Indiana Senior Property Tax Relief for Homeowners 65+

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.1 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 or Surviving Spouse Credit
• The Over-65 Circuit Breaker Credit
• Other Tax Relief That Stacks with the Senior Credits
• 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 or Surviving Spouse Credit and the Over-65 Circuit Breaker Credit. Both apply starting with the 2025 pay-2026 tax year.1

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 or Surviving Spouse Credit

This is a flat $150 credit applied directly to your property tax bill each year.1

Note the program's full name. It is the over 65 or surviving spouse credit, and the second half of that name is a real, separate route in.1

To qualify, you must meet the age-or-widowhood test, plus the ownership and income conditions:

1. Age, or the surviving-spouse route. Either you are 65 years old or older by December 31 of the preceding year, or your spouse was 65 or older at the time of death and you are 60 or older and have not remarried.1 A 61-year-old widow whose husband was 65 when he died qualifies on the second route; she does not have to wait until she is 65.
2. Ownership interest. You must have held an ownership interest in the property.1 The Marion County Auditor states this as a duration: own, or have been paying on a recorded contract, for at least one year.1 Not every county auditor states a duration, so if you bought recently, ask yours how it applies before you assume you are out.
3. The property is your primary residence.
4. Your adjusted gross income does not exceed $60,000 if filing single or $70,000 if you are a married couple.1

Those dollar limits are the credit's own income test. They are not the same as the income limits on the Over-65 Circuit Breaker Credit described below, which are adjusted upward every year.1 Each credit is tested on its own terms, so ask your county auditor about both by name rather than assuming one application covers the pair.

A $150 credit may not sound large against a full tax bill, but it comes straight off the tax owed rather than off assessed value, and it stacks with the other benefits described below.1 It reaches you only if you file for it: apply at the county auditor by January 15 of the year the taxes are first due and payable.1

The Over-65 Circuit Breaker Credit

For a homeowner on a fixed income, a sudden jump in assessed value can feel like a threat to staying in the home. 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.1 If assessed values jump or a local tax rate goes up, the Circuit Breaker absorbs the difference above that 2 percent cap.

This is also a credit for homeowners 65 and older, but its income test is not the other credit's.1 The Circuit Breaker Credit's income thresholds are raised each year by the Social Security cost-of-living adjustment under Ind. Code 6-1.1-20.6-8.5.1 Confirm the exact age cutoff date your county applies to this credit when you file. The $60,000 (single) and $70,000 (married) base applied to 2025 pay-2026 bills; for 2026 pay-2027 bills the Indiana Department of Local Government Finance instructs county officials to use $61,680 for single individuals and $71,960 for married couples.1

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.

Other Tax Relief That Stacks with the Senior Credits

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.1 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-2026.1 One practical note on where that number lives: it is a statewide figure, but the office that publishes it in plain dollars is your county auditor. The Indiana Department of Local Government Finance's deductions and credits page explains the process and links the forms without stating the amounts, so confirm the current year's deduction with your auditor rather than expecting to read it off the state page.

Supplemental Homestead Credit. Homeowners who receive the Homestead Standard Deduction also qualify for the Supplemental Homestead Credit, an additional reduction applied on top of the standard deduction.1 This credit is automatic. You do not file separately for it; once the standard deduction is on file, the supplemental credit is applied when your taxes are calculated. Because Senate Enrolled Act 1 is reshaping these figures over the next several years, confirm the current-year amount with your county auditor or the Indiana Department of Local Government Finance.

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

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 calendar year in which the taxes are first due and payable. To have a credit applied to your 2026 pay-2027 bill, file with the county auditor by January 15, 2027. Missing the deadline means waiting until the following year.1

Do not assume the credits renew themselves. Ask your county auditor, in the same call you file, whether the credit stays on the property once approved or has to be re-filed, and what changes you are obliged to report. Nothing on these credits is granted without an application, and an income rise above the threshold or a move out of the property can end eligibility.1

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.

Learn More

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.