STATEHOUSE – The governor recently ceremonially signed into law a legislative effort supported by State Rep. Stephen Bartels (R-Eckerty) to expand property tax relief for Indiana’s veterans, specifically those who have sustained total disabilities in service to the nation.
House Enrolled Act 1210 provides tax relief for veterans with total disabilities by increasing the property tax deduction to cover 100% of the assessed value of their real property, replacing the current $14,000 deduction. Under the law, disabled veterans who qualify will not owe property tax on their primary residence. The new law also converts several existing veteran property tax deductions into property tax liability credits beginning with taxes imposed for the 2026 assessment year to provide a more direct benefit.
“This legislation provides significant tax relief for veterans, protecting their homes as a thank you for protecting ours,” said Bartels, a military veteran and chair of the House Veterans Affairs and Public Safety Committee. “While we’ve worked to lower property taxes for all Hoosiers, our veterans, especially those with disabilities, will receive additional exemptions in recognition of their sacrifice and a fulfillment of our legislative priority to safeguard those who served.”
Bartels said the legislation also broadens tax relief opportunities for other veterans through new and expanded credits. Along with allowing veterans with a 100% disability rating to deduct 100% of their home’s assessed value with no cap, the law establishes new stackable property tax credits to replace existing deductions, including a $250 credit for partially disabled veterans with a disability rating of at least 10% who are age 62 or older, and a $350 credit for veterans who served during wartime.
Under the new law, veterans who previously qualified for a property tax deduction will instead receive a credit applied directly to their local property tax liability. The changes will take effect beginning with the 2026 assessment date.
Bartels estimates the legislation will provide approximately $46.2 million in additional tax relief for veterans statewide beginning with taxes payable in 2027.
To learn more about other new laws passed during the 2026 legislative session, visit iga.in.gov.
