STATEHOUSE (May 29, 2026) – The governor recently ceremonially signed into law a legislative effort supported by State Rep. Jeff Thompson (R-Lizton) 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.
“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,” said Thompson, who serves as chair of the House Ways and Means Committee. “This law will provide additional tax relief and ensure more veterans can stay in their homes.”
Thompson 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.
Thompson 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.
