Indiana Disabled Veteran Property Tax Exemption (2026)

A totally disabled veteran in Indiana can erase 100% of the assessed value of their home from the property tax rolls. That is Indiana's disabled veteran property tax exemption, a state benefit that is entirely separate from your federal VA payments.1

Indiana is home to hundreds of thousands of veterans, and many of them are paying property tax bills they could reduce or eliminate.2 This guide walks through the three benefits Indiana offers disabled veterans, who qualifies for each, what a surviving spouse can claim, and exactly how to file before the deadline.

In This Guide

• Key Takeaways
• Do You Qualify for the Indiana Disabled Veteran Property Tax Exemption?
• How Much Is the Indiana Disabled Veteran Property Tax Exemption Worth?
• What About a Surviving Spouse?
• How to Apply
• How It Works With Your VA Benefits
• Frequently Asked Questions
• Learn More

Do You Qualify for the Indiana Disabled Veteran Property Tax Exemption?

Indiana doesn't offer one exemption for disabled veterans. It offers three separate benefits, and which one fits you depends on how the U.S. Department of Veterans Affairs has rated your disability and, in one case, your age. Here's how each set of rules works.

The largest benefit is the 100% deduction for a veteran with a total disability. To qualify, you must have served in the Armed Forces for at least 90 days, received an honorable discharge, have a total disability, and have resided in Indiana for at least one year before the assessment date for which you're claiming the deduction.1 A veteran who meets all four conditions can have the full assessed value of their homestead (their principal place of residence) deducted from taxation.

If your disability isn't rated as total, you may still qualify for one of two fixed credits. The $350 credit applies to a veteran who served during a war, received an honorable discharge, and has a service-connected disability rating of 10% or more as determined by the VA.1 The $250 credit applies to a veteran who is at least 62 years of age and has a disability rating of at least 10%.1

One point families often miss: these two credits aren't mutually exclusive. A veteran who meets both sets of conditions can claim both, for a combined credit of $600.1

If you're a Hoosier over 65 or on a fixed income but you aren't the disabled veteran these rules describe, Indiana has a separate set of age- and income-based property tax breaks. Those are covered in our guide to Indiana senior property tax relief.

How Much Is the Indiana Disabled Veteran Property Tax Exemption Worth?

The value depends on which benefit you claim, and the difference is significant. A deduction lowers the assessed value your tax bill is calculated on, while a credit is a flat dollar amount subtracted from the bill itself. The table below lays out all three side by side.

For a totally disabled veteran, the 100% deduction is by far the most valuable of the three, because it removes the entire assessed value of the homestead from the tax rolls rather than trimming a fixed amount off the final bill.1 A veteran who qualifies only for the partial credits still comes out ahead by up to $600 a year, and that credit repeats annually as long as you continue to qualify.1

What About a Surviving Spouse?

The benefit doesn't disappear when the veteran passes away. A surviving spouse of a veteran who would have qualified for the deduction may claim it.1 That means if your late husband or wife met the service, discharge, disability, and residency conditions, you can carry the benefit forward on the home rather than losing it.

Because the rules that decide whether the veteran "would have qualified" turn on the specifics of their service and disability record, this is exactly the kind of case worth reviewing with a County Veteran Service Officer, who can confirm your eligibility before you file.

How to Apply

Applying is a paper process handled at the county level, not through the federal VA. You file State Form 12662 with your local County Veteran Service Officer or your County Auditor, who administers the deduction.1 The Indiana Department of Veterans Affairs publishes the fact sheet that spells out each benefit's conditions.

You don't have to sort this out alone. Indiana veterans can get free help filing state and federal benefit claims through the Indiana Department of Veterans Affairs and its network of certified County Veterans Service Officers, who complete the paperwork on your behalf at no charge.3

How It Works With Your VA Benefits

This is the part that trips people up, so it's worth being precise. Indiana's disabled-veteran property tax relief is a state benefit, created under state law and administered through your county auditor. It is a separate program from the federal VA's disability compensation and Veterans Pension benefits.1

The two systems do touch in one place: the partial credits use your VA disability rating as a threshold. The $350 credit requires a service-connected rating of 10% or more as determined by the VA, and the $250 credit requires a rating of at least 10%.1 So the rating the VA already assigned you is what unlocks the state credit.

Federal Aid and Attendance is a different animal entirely. It's a pension benefit for wartime veterans who need help with daily activities, with a 2026 maximum of up to $29,093 a year for a veteran alone and up to $34,488 a year for a veteran with a spouse.4 That maximum is a ceiling, not a payment: VA pays the difference between your income for VA purposes and the limit, so a veteran with income receives less than the full amount. VA publishes these rates as annual maximums, so a monthly amount is the yearly award divided by 12, roughly $2,424 a month for a veteran alone and $2,874 for a veteran with a spouse.4 Aid and Attendance carries its own rules. You need qualifying wartime service, no dishonorable discharge, and at least one of four conditions: being 65 or older, having a permanent and total disability, being a patient in a nursing home for long-term care because of a disability, or receiving Social Security Disability Insurance or Supplemental Security Income. Any one of those four is enough, so a wartime veteran under 65 on SSI can qualify without a permanent-and-total rating. You also need help with daily activities, and in 2026 your net worth must stay under $163,699, a limit VA measures against your and your dependents' assets and annual income rather than assets alone.5 Qualifying for the Indiana property tax benefit and qualifying for Aid and Attendance are two separate determinations, so it's worth checking both. If you want the full walkthrough of that program in Indiana, see our guide to VA Aid and Attendance in Indiana.

Learn More

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.