Indiana Disabled Veteran Property Tax Exemption

The deduction and the credits are different things. The deduction reduces to zero the assessed value of the qualifying residence, so the property tax on it goes to zero. The credits come off the tax bill and cannot exceed the tax: an unused credit is not carried forward, carried back or refunded. A person who receives the 100% deduction may not receive any local property tax credit under IC 6-1.1-51.3, so the credits never add to the deduction.

The credits can be combined with each other: a veteran may receive both the $350 and $250 credits if the veteran qualifies for each, and also the Over-65 and Blind/Disabled credits.

• Beginning with the 2026 assessment date (2026 Pay 2027), there is no maximum assessed value for real property receiving the section 14 deduction (a separate limit applies to a mobile or manufactured home not assessed as real property).

  “Beginning with the 2026 assessment date (2026 Pay 2027), there is no maximum assessed value for real property receiving the section 14 deduction”

• For real property, the deduction reduces to zero the assessed value of the property that qualifies; it does not eliminate every charge on the property.

  “For real property, the deduction reduces to zero (0) the assessed value of the property that qualifies under IC 6-1.1-12-14.”

• An individual who receives the 100% deduction may not receive any local property tax credit under IC 6-1.1-51.3.

  “An individual who receives the 100% deduction under IC 6-1.1-12-14 may not receive any local property tax credit under IC 6-1.1-51.3.”

• A veteran may receive both the $350 and $250 credits if they qualify for each, and may also receive other local credits (Over-65, Blind/Disabled).

  “A veteran may receive both the $350 and $250 credits if they qualify for each, and may also receive other local credits (Over-65, Blind/Disabled).”

• The total credit remains limited to the statutory amount and the taxpayer’s property tax liability, and any unused credit may not be carried forward, carried back, or refunded.

  “The total credit remains limited to the statutory amount and the taxpayer’s property tax liability, and any unused credit may not be carried forward, carried back, or refunded.”

The applicant must own the home or be buying it under a recorded contract on the date the application is filed, use it as the principal place of residence, have lived in Indiana at least one year before the assessment date, have served in the U.S. military or naval forces at least 90 days and been honorably discharged, and be totally disabled. Wartime service is not required. The disability proof is a VA pension certificate or award of compensation, or an Indiana Department of Veterans Affairs certificate of eligibility, The DLGF notes that IC 6-1.1-12-14 does not state that the total disability must be service-connected.

A rating of 10% or any partial rating does not satisfy the total-disability test for the deduction. Trusts cannot receive the 100% deduction, although they can receive the credits.

• The applicant must have resided in Indiana for at least one year before the assessment date for which the deduction is claimed.

  “Yes. The applicant must have resided in Indiana for at least one (1) year before the assessment date for which the deduction is claimed.”

• The statute does not state that the veteran’s total disability must be service-connected; it requires a total disability evidenced by a VA pension certificate or award of compensation, or an IDVA certificate of eligibility.

  “IC 6-1.1-12-14 does not state that the veteran’s total disability must be service-connected. Section 14 requires a total disability evidenced by a VA pension certificate or award of compensation, or an IDVA certificate of eligibility.”

• A peacetime veteran seeking the 100% deduction must satisfy all section 14 requirements, including at least 90 days of service, honorable discharge, total disability, the Indiana residency requirement and use of the property as the principal place of residence.

  “A peacetime veteran seeking the 100% deduction must satisfy all section 14 requirements, including at least 90 days of service, honorable discharge, total disability, the Indiana residency requirement, and use of the property as the principal place of residence.”

• A 10% disability rating by itself does not satisfy the total disability requirement for the 100% deduction.

  “A 10% disability rating by itself does not satisfy the total disability requirement for the 100% deduction under IC 6-1.1-12-14.”

• HEA 1210 removed the 100% disabled veteran deduction as a deduction to which a trust may be entitled. Trusts may instead qualify for certain credits, but not this deduction.

  “No. HEA 1210 removed the 100% disabled veteran deduction as a deduction to which a trust may be entitled. Trusts may instead qualify for certain credits, but not this deduction.”

• Wartime service is not required for the 100% deduction or for the $250 credit, but the $350 credit does require service during a U.S. war.

  “Wartime service is not required for the 100% deduction under IC 6-1.1-12-14, and it is not required for the $250 credit under IC 6-1.1-51.3-5. The $350 credit under IC 6-1.1-51.3-6 does require service during a U.S. war.”

HEA 1210 ended the old $24,960 deduction for a veteran with a service-connected disability and replaced it with the $350 credit, and it rewrote the $14,000 deduction into the 100% deduction for totally disabled veterans. A veteran who had the $14,000 deduction does not lose benefits automatically: for 2026 Pay 2027 only, the county auditor applies the $250 credit instead, so a veteran who qualifies for the 100% deduction has to file a new application to get it. The DLGF says the $350 credit is not automatic by statute but recommends that counties transfer holders of the old $24,960 deduction. Once the 100% deduction is approved, no yearly application is needed while the veteran stays eligible.

• HEA 1210 states that the old $24,960 deduction only applies to property taxes imposed for an assessment date before January 1, 2026, essentially repealing it as of the January 1, 2026 assessment date, and replaces it with a new $350 property tax credit.

  “HEA 1210 states that this deduction only applies to property taxes imposed for an assessment date before January 1, 2026, essentially repealing the deduction as of the January 1, 2026, assessment date. However, HEA 1210 replaces this expired deduction with a new $350 property tax credit under Ind. Code § 6-1.1-51.3-6”

• Section 47 of HEA 1210, retroactively effective January 1, 2026 (and thus applicable as of 2026 Pay 2027), amends the section that provided a $14,000 deduction for veterans who had either a total disability or who were at least 62 years old and had a disability of at least 10%.

  “Section 47 of HEA 1210, retroactively effective January 1, 2026 (and thus applicable as of 2026 Pay 2027), amends Ind. Code § 6-1.1-12-14, which provided for a deduction in the amount of $14,000 for veterans who had either a total disability or who were at least 62 years old and had a disability of at least 10%.”

• For 2026 Pay 2027 only, a taxpayer who received the $14,000 deduction does not have it carried over: the county auditor must not carry over that former deduction and must instead apply the $250 credit.

  “For 2026 Pay 2027 only, if a taxpayer received a deduction under IC 6-1.1-12-14, which provided for a deduction in the amount of $14,000 for veterans who had either a total disability or who were at least 62 years old and had a disability of at least 10% before the enactment of HEA 1210-2026, the county auditor must not carry over that former deduction and must instead apply the $250 credit under IC 6-1.1-51.3-5.”

• Therefore, a new filing is required to receive the amended 100% deduction for 2026 Pay 2027.

  “Therefore, a new filing is required to receive the amended 100% deduction for 2026 Pay 2027.”

• Is the $350 credit automatic for veterans who had the old $24,960 deduction? Not by statute: it requires an application and the statute has no automatic conversion provision (the DLGF recommends that counties transfer holders of the old $24,960 deduction).

  “Not by statute. IC 6-1.1-51.3-6 requires an application and does not contain an automatic conversion provision.”

A surviving spouse can keep the 100% deduction if the veteran met the service and total-disability requirements at death and the spouse owns or is buying the property when the application is filed. The spouse is no longer eligible after remarrying. The DLGF documents do not restate the Indiana residency rule for spouses, so ask your auditor whether it applies to you.

• Yes, if the veteran satisfied the section 14 requirements at the time of death and the surviving spouse owns or is buying the property under a qualifying contract when the deduction statement is filed.

  “Yes, if the veteran satisfied IC 6-1.1-12-14(a)(1) through (a)(4) at the time of death and the surviving spouse owns or is buying the property under a qualifying contract when the deduction statement is filed.”

• The spouse is no longer eligible if the spouse subsequently remarries.

  “The spouse is no longer eligible if the spouse subsequently remarries.”

• For the $250 credit, a surviving spouse may qualify if the deceased veteran met the requirements, or if the veteran was killed in action, died while serving on active duty or died while performing inactive duty training, and the spouse satisfies the ownership or qualifying-contract requirement.

  “For the $250 credit, a surviving spouse may qualify if the deceased veteran satisfied IC 6-1.1-51.3-5(a)(1) through (a)(4), or if the veteran was killed in action, died while serving on active duty, or died while performing inactive duty training, and the spouse satisfies the ownership or qualifying-contract requirement.”

Apply to the county auditor where the property is located on State Form 12662 with the VA pension certificate or award of compensation, or an Indiana Department of Veterans Affairs certificate of eligibility; for the $350 credit a VA disability compensation check is also accepted. The deadline is January 15 of the year the taxes are first due and payable, so a veteran who acquires a home on September 1, 2026 files by January 15, 2027 for taxes payable in 2027. A late application cannot be made retroactively.

A veteran who receives the deduction or the credits and stays eligible does not have to refile each year. A deduction can stay on a home sold after the assessment date for one year under IC 6-1.1-12-45.

• For the deduction and the $250 and $350 credits, the application must be completed and dated on or before January 15 of the calendar year in which the property taxes are first due and payable, and a person who fails to apply by the deadline may not apply retroactively.

  “For the IC 6-1.1-12-14 deduction and the $250 and $350 credits, the application must be completed and dated on or before January 15 of the calendar year in which the property taxes are first due and payable. If the application is mailed, it must be postmarked on or before the filing deadline. A person who fails to apply by the statutory deadline may not apply for the deduction or credit retroactively.”

• The disability evidence is a VA pension certificate or award of compensation, or an IDVA certificate of eligibility.

  “a VA pension certificate or award of compensation, or an IDVA certificate of eligibility”

• A taxpayer who receives the deduction and remains eligible is not required to refile annually.

  “A taxpayer who receives the IC 6-1.1-12-14 deduction and remains eligible is not required to refile annually”

• The $250 and $350 credits do not contain an Indiana-residency requirement, so a veteran who moves out of state can keep them if the veteran still owns or is buying Indiana property and otherwise qualifies.

  “The $250 and $350 credits do not contain an Indiana-residency requirement.”