By MIKE MADIGAN, Guest Columnist
Military Veterans Coalition of Indiana
The 2026 Indiana General Assembly just ended after passing House Bill 1210: Department of Local Government Finance.
Any Disabled Veteran who is “totally disabled” and has an honorable discharge is eligible for a 100 percent tax credit on their property tax bill. Indiana will be the 23rd state to offer this benefit.
Congratulations to the thousands of Veterans who will qualify; they have earned this credit. These Disabled Veterans have already paid more than their fair share with their bodies, health, and future employment. Expecting them to fund state budgets through property taxes adds an unfair financial burden to those who can least afford it. This was long overdue. Thank you to state legislators for passing it!
The current law allows a Disabled Veteran who is at least 10 percent disabled and less than 100 percent disabled to deduct $24,960 from the assessed value of their taxable home (not rental). The Disabled Veteran must be honorably discharged and provide to their County Assessor evidenced by: (A) a pension certificate, an award of compensation, or a disability compensation check issued by the United States Department of Veterans Affairs; or (B) a certificate of eligibility issued to the individual by the Indiana Department of Veterans Affairs.
Also, a surviving spouse of an individual who receives this deduction even after the Disabled Veteran dies is also eligible for this deduction if the surviving spouse remains in the same dwelling and doesn’t remarry. The law was changed to eliminate this deduction on Jan. 1, 2028.
The $14,000 assessed value deduction which had a $240,000 cap is eliminated. Starting in January 2028, this same Disabled Veteran, Surviving Spouses, and any new Disabled Veteran or Surviving Spouse as described above will receive a $350 tax credit off their property tax bill.
This will be a financial loss to about 80 percent of the Disabled Veterans and Surviving Spouses.
Any of these Disabled Veterans or Surviving Spouses who are over 62 will be eligible for an additional $250 tax credit regardless of the value of their taxable home. However, they may not be eligible for the $100 senior tax credit that all other homeowners are eligible for because of the 2025 property tax changes. This is new and will minimally offset the losses cited above.
I find it difficult and disturbing that all the Disabled Indiana Veterans do not receive a property tax credit equal to their VA Disability rating. Indiana has a moral and economic incentive to have each veteran join this property tax credit, equal to their VA Disability Rating. It’s a matter of parity, fairness, and honoring service.
Let’s make our gratitude tangible. Words like “thank you for your service” ring hollow without action. Let’s get this done!
We need to get our priorities in order. Wars eventually end, but the wounds our veterans carry can last a lifetime. Taking care of them should never be optional; it should be our nation’s priority.
Let’s keep working together for help, aid, and hope for our Veteran Community.