The governor ceremonially signed into law a measure supported by State Representative Jeff Thompson on May 29 to expand property tax relief for Indiana veterans, particularly those with total disabilities sustained during service. House Enrolled Act 1210 increases the property tax deduction for totally disabled veterans to cover 100% of the assessed value of their real property, replacing the previous $14,000 deduction. This means that qualifying disabled veterans will not owe property tax on their primary residence.
The new law also converts several existing veteran property tax deductions into credits applied directly to local property tax liability beginning with taxes imposed for the 2026 assessment year. Thompson said, “Hoosier veterans made tremendous sacrifices for our state and country, and one way we can honor their service is by removing or reducing their property taxes. This law will provide additional tax relief and ensure more veterans can stay in their homes.”
The legislation broadens opportunities for other veterans as well through new and expanded credits. Alongside allowing totally disabled veterans to deduct the full assessed value of their home without a cap, it establishes stackable credits such as a $250 credit for partially disabled veterans aged 62 or older with at least a 10% disability rating, and a $350 credit for wartime service.
Under these changes, those who previously qualified for deductions will instead receive credits applied directly against local taxes owed. The modifications take effect starting with assessments in 2026.
Thompson estimates that approximately $46.2 million in additional statewide veteran tax relief will be provided beginning with taxes payable in 2027.
