Governor ceremonially signs new law to expand property tax relief for Hoosier veterans

Submitted by Office of State Rep. Danny Lopez

The governor recently ceremonially signed into law a legislative effort co-authored by State Rep. Danny Lopez (R-Carmel) 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 percent 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.

Lopez

“Indiana’s veterans have earned more than our gratitude, they’ve earned meaningful support from the state they served,” Lopez said. “This legislation helps ease the financial burden on disabled veterans and provides greater peace of mind for those who have already sacrificed so much for our country.”

Lopez said the legislation also broadens tax relief opportunities for other veterans through new and expanded credits. Along with allowing veterans with a 100 percent disability rating to deduct 100 percent 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 percent 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.

Lopez 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.