Property Tax Deductions
If you bought a home or refinanced your mortgage this year be sure to file your property tax deductions by the end of the year! If these aren’t filed by December 31, your taxes could increase. Deductions are not given automatically, you must apply for them in the auditor’s office for your county. We’ve included a list of these offices below to help streamline this process.
There are two main property tax deductions that most homeowners may qualify for: Homestead & Mortgage.
This is by far the most valuable deduction and can save you up to 50% on your property tax bill. The homestead deduction is available if your home is your primary residence in Indiana and it is not a rental house or vacation house. A homestead is defined as your primary residence (including a mobile or manufactured home), one garage, and up to one of acre of land immediately surrounding the home.
The homestead deduction is now filed for you in most counties at closing through the sales disclosure, but this is a great time to verify with the county that it is recorded. If you do need to file forms, forms must be filed at the county auditor’s office in the county where the homestead is located. The homestead deduction reduces the gross assessed value of your homestead portion of your property by up to 60% or $45,000. Individuals and married couples can only receive one homestead exemption on one particular homestead property in a year.
The second most common deduction is the mortgage deduction. This deduction is available to homeowners who have a mortgage attached to their property. You can apply for a mortgage deduction if you’ve purchased a home and you have a mortgage, you’ve refinanced your mortgage, you’ve changed your deed or you’ve changed the ownership name on the property title.
The mortgage deduction form is NOT filed for you at closing when you purchase a home or refinance. You must file the form with your county auditor’s office before December 31st to receive the deduction for the following year’s property taxes. Your deed must be recorded, so it’s a good idea to wait at least 30 days after closing to file. If you refinanced your mortgage, you must refile for a mortgage deduction - it will not transfer from the previous mortgage.
You may file in person, through the mail or online if your county allows online applications. To file in person, take the documents you received at closing to your county auditor’s office. Let them know you’d like to file your mortgage and homestead deductions. To file through the mail, you can find and print the mortgage and homestead deduction forms from the IN.gov website. When filing for these deductions, make sure you get and keep the receipt. It’s your only proof that you’ve filed. These deductions will remain in place from year to year. You only need to apply or reapply for these deductions when you sell your property, change your title, or refinance your home (mortgage deduction only).
We have included information here about the two most common deductions. There are other deductions you may qualify for including World War I veteran or spouse, solar energy, wind power, hydroelectric power, or geothermal.
Need help finding your county auditor’s office? Check the list below for contact information and links for auditor’s offices in the greater Indianapolis area. Don’t forget we are here to help! If you need additional guidance don’t hesitate to reach out to us.
Boone County Auditor’s Office
201 Courthouse Square Lebanon, IN 46052
Hamilton County Auditor’s Office
33 N. 9th St., Suite L21 Noblesville, IN 46060
Hancock County Auditor’s Office
111 W. American Legion Place, Suite 217 Greenfield, IN 46140
Hendricks County Auditor’s Office
355 S. Washington, Suite 202 Danville, IN 46122
Johnson County Auditor’s Office
86 W. Court St. Franklin, IN 46131
Madison County Auditor’s Office
16 E. 9th Street, Room 101 Anderson, IN 46016
Marion County Auditor’s Office
200 E. Washington St. Suite 801 Indianapolis, IN 46204
Morgan County Auditor’s Office
180 S. Main, Suite 104 Martinsville, IN 46151
Shelby County Assessor’s Office
25 W. Polk Street, Room 205 Shelbyville, IN 46176