The governor ceremonially signed into law on June 1 a measure co-authored by State Representative Danny Lopez to expand property tax relief for Indiana veterans, specifically those who have sustained total disabilities during their 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 any property tax on their primary residence. The 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.
“Indiana’s veterans have earned more than our gratitude, they’ve earned meaningful support from the state they served,” Lopez said. “This legislation helps ease the financial burden on disabled veterans and provides greater peace of mind for those who have already sacrificed so much for our country.”
Lopez said the legislation broadens opportunities for other veterans through new and expanded credits. Veterans with a 100% disability rating can deduct all of their home’s assessed value without a cap, while new stackable credits are established: a $250 credit is available to partially disabled veterans aged 62 or older with at least a 10% disability rating, and a $350 credit is provided to wartime service veterans. Under these changes, former deductions will be replaced by direct credits applied against local taxes starting in 2026.
According to Lopez, approximately $46.2 million in additional statewide tax relief is expected beginning with taxes payable in 2027 as a result of this legislation.
To learn more about other laws passed during the legislative session, residents can visit iga.in.gov.
