Veteran Property Tax Relief — The Whole Assessed Value at Total Disability, Credits Below It
Restructured by SEA 1-2025 for taxes payable in 2026. A totally disabled veteran with 90 days' service, an honorable discharge and a year's Indiana residence deducts the full assessed value of the principal residence. Below that tier the relief is a credit rather than a deduction: $350 for a wartime veteran rated 10% or more, and $250 for a veteran aged 62 or over with 90 days' service and a 10% rating. The two credits stack, and surviving spouses of those killed in action or who died on active duty may qualify.
Verified August 27, 2026
What this benefit is
Restructured by SEA 1-2025 for taxes payable in 2026. A totally disabled veteran with 90 days' service, an honorable discharge and a year's Indiana residence deducts the full assessed value of the principal residence. Below that tier the relief is a credit rather than a deduction: $350 for a wartime veteran rated 10% or more, and $250 for a veteran aged 62 or over with 90 days' service and a 10% rating. The two credits stack, and surviving spouses of those killed in action or who died on active duty may qualify.
What it's worth: The full assessed value deducted at total disability; otherwise a $350 and/or $250 credit
- SEA 1-2025 governs for taxes payable in 2026. Guidance written before it describes a different scheme.
- The totally disabled tier deducts the FULL assessed value of the principal residence, for a veteran with at least 90 days of service, an honorable discharge and one year of Indiana residence.
- A wartime veteran with a service-connected rating of 10% or more receives a $350 credit.
- A veteran aged 62 or over with at least 90 days of service and a 10% rating receives a $250 credit.
- Those two credits are stackable, so a veteran meeting both descriptions takes $600.
- Surviving spouses of veterans killed in action, or who died on active duty, may qualify for the credits.
- A separate route at IC 6-1.1-12-14.5 gives a homestead deduction on gifted property equal to the disability percentage, for a rating of 50% or more.
- A credit comes off the tax bill and a deduction comes off the assessed value. They are not interchangeable, and the lower tiers here are credits.
- We do not hold Indiana county tax rates, so we cannot convert the deduction tier into a dollar figure for your county.
Who is entitled to it
- You served in the U.S. armed forces.
- You have a VA service-connected disability.
- You own and occupy the home as your principal residence.
- Your home is in Indiana.
Not sure whether that describes you?
Answer a few questions about this benefit specifically — we only ask what this one actually depends on, and we stop as soon as we know.
How to claim it
Deadline: January 5- 1File State Form 12662 with your county auditor. The form is the same across the tiers; which relief you receive depends on what you evidence.
- 2For the full-value deduction, evidence total disability, at least 90 days of service, an honorable discharge and one year of Indiana residence.
- 3For the $350 credit, evidence wartime service and a service-connected rating of 10% or more. For the $250 credit, evidence age 62 or over, 90 days of service and a 10% rating — and claim both where both apply, because they stack.
- 4If the home was gifted to you, ask about IC 6-1.1-12-14.5 separately: at a 50% rating or above it gives a homestead deduction equal to your disability percentage.
- 5A surviving spouse of a veteran killed in action or who died on active duty should ask about the credits rather than assuming they ended with the veteran.
- 6Ask what happens if your rating or occupancy changes — that is what ends most granted reliefs.
- Form
- State Form 12662
- File with
- Your county auditor
- Documents you will need
- va benefit summary letter · dd214
- Automatic until something changes
- Granted once and carried forward. You must report a change in ownership, occupancy or status.
Sources
- authority · statuteInd. Code §6-1.1-12-14
- operating · published policyIndiana Department of Local Government Finance
This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.