Submitted by Hamilton County Auditor’s Office
If you are unaware, the Auditor’s Office maintains property tax deductions, transfers, GIS mapping, and much more. Taxpayers visit our office daily to file their property tax deductions.
One of the most filed deductions is the Mortgage Deduction. Reducing the taxable value of the home by $3,000, this deduction is for Indiana residents who maintain a mortgage on their home.
On March 21, 2022, Governor Eric J. Holcomb signed into law House Enrolled Act 1260-2022 (HEA 1260). Section 12 of HEA 1260 repeals the mortgage deduction in its entirety, effective Jan. 1, 2023. This means that beginning Jan. 1, 2023, individuals will no longer be able to apply for this property tax deduction, and county auditors will no longer apply the mortgage deduction to property tax bills beginning with the 2023 pay 2024 cycle.
County Auditor Robin M. Mills wants you to know it’s not all bad news.
Mills
“Yes, the General Assembly has repealed the mortgage deduction; however, has added $3,000 to the homestead deduction, effective for assessment dates after Dec. 31, 2022.”
What this means for our taxpayers is that the homestead deduction amount for 2023 Pay 2024 will be the lesser of:
- Sixty percent of the assessed value of the real property, mobile home not assessed as real property, or manufactured home not assessed as real property; or
- $48,000
If a person or married couple timely files an application for the homestead and meets eligibility requirements, the legislature added $3,000 to the amount. Now instead of $45,000 for a homestead deduction, owners will receive $48,000. Taxpayers will see this change in their January 2023 assessments payable in 2024. The supplemental homestead deduction remains the same in Ind. Code 6-1.1-12-37.5.
Outlined below are the various deductions offered, along with their qualifications. Certain deductions can be filed via our website, and all deductions can be filed in person at the Historic Courthouse. There is no cost to file a deduction, it only takes about five to 10 minutes, and no appointment is necessary. All applicable deductions must be filed by Dec. 31 to take effect on the following year’s tax bill.
- The Standard Homestead Deduction is essentially a three-prong test: 1) you must be an Indiana resident; 2) you must have ownership in the home; and 3) you must occupy the home as your principal place of residence. When filing, you will need the last five digits of your Social Security number and driver’s license number. If you are married, you will need the same information for your spouse, regardless of how the home is titled. Individuals and married couples are limited to one standard homestead deduction.
- The Disabled Veteran Deduction offers veterans with a 10 percent or greater disability an additional deduction. When filing, please bring a copy of your DD214 and either your Award Letter (a.k.a. summary of benefits) or Certificate of Eligibility.
- The Blind or Disabled Deduction requires proof of disability or blindness at the time of filing. Acceptable forms of proof are the Social Security disability award letter or a letter from your doctor’s office outlining the disability. Additionally, your annual income may not exceed $17,000.
- The Over Age 65 Deduction is available to taxpayers over the age of 65. However, the assessed value of your home may not exceed $240,000 and your annual household adjusted gross income must not exceed $30,000 for a single applicant, or $40,000 for a married couple. All deeded owners must reside on the property and maintain a standard homestead deduction. Proof of income is required at the time of filing.
- The Over Age 65 Circuit Breaker Credit is an additional benefit for taxpayers over the age of 65. You must be over the age of 65, be an Indiana resident with a standard homestead on file, and the assessed value of the home may not exceed $200,000. Your annual household adjusted gross income must not exceed $30,000 for a single applicant, or $40,000 for a married couple. Proof of income is required at the time of filing.
- Geothermal Deduction: Thinking about going green? If you are, be sure to contact us regarding any geothermal unit(s) or solar/wind power devices you are considering. The geothermal deduction is for a very specific heating and cooling unit. When filing for this deduction you will want to bring the make, model, and serial number(s) of all working unit(s).
Please visit the Hamilton County Facebook page where we maintain informative articles. Our county website, hamiltoncounty.in.gov, hosts a vast amount of revealing information. To file online, choose ‘Important Information,’ then under ‘Apply For’ select ‘Property Tax Deductions and Credits.’ To file your property tax deductions online, select the desired deduction.
We are located in the Historic Courthouse in downtown Noblesville, in the southwest corner of the first floor. We are open Monday through Friday from 8 a.m. to 4:30 p.m., excluding government holidays. You may reach us via phone at (317) 770-4412.