Indiana Disabled Veteran Property Tax Exemption (HEA 1210): What Changed in 2026
Indiana rewrote its disabled-veteran property tax benefits in House Enrolled Act 1210-2026, signed Governor Mike Braun on March 12, 2026. Totally disabled veterans can now deduct 100% of assessed value — but for this year only, the benefit does not carry over automatically, and a veteran who does nothing gets a $250 credit instead.
If you had the disabled veteran deduction, you must reapply — by January 15
County auditors SHALL NOT apply the IC 6-1.1-12-14 deduction to taxpayers who previously received it, and shall instead apply the new $250 credit — notwithstanding the normal automatic-carryover rule in IC 6-1.1-12-17.8.
What that means: A 100%-disabled Indiana veteran who does nothing will receive a $250 credit instead of a full exemption from property tax on their home.
File a new application — State Form 12662 — with the county auditor by January 15. Once approved, normal carryover resumes and no further application is needed while the veteran remains eligible.
IC 6-1.1-51.3-5(g) · applies to the 2026 assessment date, taxes payable 2027 — this year only
What changed
| Who | Before | From the 2026 assessment date |
|---|---|---|
| Total disability | $14,000 deduction, capped at $240,000 (as of the 2026-01-01 assessment date) | 100% of assessed value — no cap |
| Age 62+, 10%+ disability | $14,000 deduction | $250 credit — no longer qualifies for the deduction |
| Wartime, 10%+ service-connected | $24,960 deduction (IC 6-1.1-12-13) | $350 credit — the deduction expired |
| Trusts | Could claim the deduction | No longer entitled to claim it |
| Surviving spouse who remarries | Retained eligibility | No longer eligible |
The 100% deduction
Total Disability Veteran Deduction
100% of assessed value
Of the assessed value of real property, mobile home, or manufactured home not assessed as real property. Retroactive to 2026-01-01 — applies to the 2026 assessment date, taxes payable 2027.
You must meet all of these
- Total disability (veterans who qualified at age 62+ with a 10% disability no longer qualify for this deduction)
- The property must be the individual's principal place of residence
- The individual must have resided in Indiana for at least one year before the assessment date claimed
- At least 90 days of military or naval service
- Honorable discharge
Limits worth knowing
- A recipient of this deduction may NOT receive any local property tax credit under IC 6-1.1-51.3 — the $250 and $350 credits are unavailable to anyone taking it
- A trust is no longer entitled to claim this deduction (HEA 1210 § 53, amending IC 6-1.1-12-17.9)
- A surviving spouse may still receive it where the veteran met the requirements at death, but is no longer eligible if the surviving spouse remarries
- Still subject to IC 6-1.1-12-40.5: on a mobile or manufactured home not assessed as real property, deductions may not exceed one-half of the home's assessed value
IC 6-1.1-12-14, as amended by HEA 1210 § 47 · apply on State Form 12662, filed with your county auditor by january 15 of the year the taxes are first due and payable
The two new credits
These are for veterans who do not take the 100% deduction. They stack with each other and with other credits — but never with the deduction.
$250
Veterans at least 62 years old with a disability of 10% or more
- · At least 90 days of service
- · Honorable discharge
- · Ownership or contract purchase of the property
Surviving spouse: Eligible, including where the veteran was killed in action, died on active duty, or died while performing inactive duty training
IC 6-1.1-51.3-5 (new, HEA 1210 § 96)
$350
Veterans with a service-connected disability of at least 10% who received an honorable discharge after serving during any of its wars
- · Service-connected disability of at least 10%
- · Honorable discharge after service during any of its wars
Replaces: The $24,960 deduction under IC 6-1.1-12-13, which HEA 1210 § 46 expired as of the 2026-01-01 assessment date
Unlike the $250 credit, the statute does NOT auto-apply this to prior $24,960 deduction recipients. DLGF recommends counties transfer them, but that is a recommendation, not a statutory requirement — individuals must apply on the prescribed form.
IC 6-1.1-51.3-6 (new, HEA 1210 § 97)
What stacks, what doesn't
- The $250 credit and the $350 credit with each other
- Either or both with the Over 65 Credit
- Either or both with the Blind/Disabled Credit
- Neither credit may be combined with the IC 6-1.1-12-14 deduction. A taxpayer takes the deduction or the credits, not both.
Unused credit is lost. A taxpayer may not carry excess credit into the following year, and is not entitled to any carryback or refund of unused credit. A credit larger than the tax bill is simply lost. (IC 6-1.1-51.3-0.6 (new, HEA 1210 § 94))
Who may pay more
Two groups moved from a deduction to a flat credit. Whether that leaves them better or worse off depends on figures that vary by county.
Veterans with 10%–90% ratings who previously received the $24,960 deduction
Was: $24,960 deduction (IC 6-1.1-12-13) → Now: $350 credit (IC 6-1.1-51.3-6)
A deduction reduces assessed value, so its cash worth scales with the home's value and the local tax rate. A credit is a flat reduction of the bill. Which is larger depends on both — GovSifter cannot compute it.
Veterans 62+ with a 10%+ disability who previously received the $14,000 deduction
Was: $14,000 deduction (old IC 6-1.1-12-14) → Now: $250 credit (IC 6-1.1-51.3-5), and no longer qualify for the deduction
Same mechanism: the deduction scaled with assessed value; the credit does not.
Your outcome depends on your local tax rate and your home's assessed value. A deduction scales with your home's value; a flat credit does not. Without your county's rate, no one can tell you which is better for you — including us. Your county auditor can.
What was lost
Vehicle excise tax offset
A veteran could previously apply any unused portion of the IC 6-1.1-12-13 or -14 deduction against vehicle excise tax, at $2 per $100 of taxable value. IC 6-1.1-12-13's deduction has expired, removing that route.
The agency itself is hedging here: The DLGF memo states that because the remaining 100% deduction is now expressed as a percentage rather than a flat dollar amount, "it is unclear how any portion of the deduction would ever remain unused."We are repeating DLGF's uncertainty rather than resolving it — if you relied on this offset, ask your county auditor directly.
HEA 1210 §§ 150, 151, amending IC 6-6-5-5 and IC 6-6-5-5.2, retroactive to 2026-01-01
Trust eligibility
A trust is no longer entitled to claim the 100% deduction.
HEA 1210 § 53, amending IC 6-1.1-12-17.9
Surviving spouse remarriage
A surviving spouse who remarries is no longer eligible for the 100% deduction.
IC 6-1.1-12-14, as amended
One thing was restored: the World War I surviving-spouse deduction
Reinstates the deduction for surviving spouses of World War I veterans, which SEA 1-2025 had limited.
Not required for those who received it for the 2024-01-01 assessment date — the county auditor applies it automatically. These recipients CAN apply unused portions to vehicle excise tax.
HEA 1210 § 50, amending IC 6-1.1-12-16 · Retroactive to 2025-01-01 — the 2025 assessment date, taxes payable 2026
How to apply
- 1Get State Form 12662 from your county auditor or the DLGF forms page.
- 2Gather your documentation: VA pension certificate, or award of compensation, or Or a certificate of eligibility from the Indiana Department of Veterans Affairs.
- 3File it with your county auditor — not the assessor, not the treasurer.
- 4Do it by january 15 of the year the taxes are first due and payable. Miss it and you get the $250 credit for that year instead.
Filing is free. No one needs to be paid to file a property tax deduction on your behalf.
Timing — this affects your 2027 bill
The veteran provisions are retroactively effective January 1, 2026, which means they apply to the 2026 assessment date and therefore to taxes payable in 2027 — not the bill you are paying now.
One provision reaches further back: the World War I surviving-spouse deduction was reinstated retroactive to January 1, 2025, affecting the 2025 assessment date and taxes payable 2026.
Questions, answered
Do 100% disabled veterans pay property tax in Indiana?
Under House Enrolled Act 1210-2026, a veteran with a total disability can deduct 100% of the assessed value of their principal residence, with no assessed-value cap — which in practice means no property tax on that home. The deduction replaced a flat $14,000 deduction and the prior $240,000 value cap. It applies from the 2026 assessment date, taxes payable 2027. It is not automatic for the 2026 assessment date: you must file State Form 12662 with your county auditor by January 15.
Do I have to reapply for the Indiana disabled veteran deduction?
Yes, for the 2026 assessment date. IC 6-1.1-51.3-5(g) directs county auditors not to apply the IC 6-1.1-12-14 deduction to taxpayers who previously received it, and to apply the new $250 credit instead — overriding the normal automatic-carryover rule in IC 6-1.1-12-17.8. A totally disabled veteran who does nothing receives a $250 credit rather than a full exemption. File State Form 12662 with your county auditor by January 15. Once approved, normal carryover resumes and no further application is needed while you remain eligible.
Can I get both the $250 and $350 veteran credits in Indiana?
Yes. The $250 credit (IC 6-1.1-51.3-5, for veterans 62 or older with a disability of 10% or more) and the $350 credit (IC 6-1.1-51.3-6, for wartime veterans with a service-connected disability of at least 10%) can be combined with each other, and with the Over 65 Credit and the Blind/Disabled Credit. What you cannot do is combine either credit with the IC 6-1.1-12-14 total-disability deduction — a recipient of that deduction may not receive any local property tax credit under IC 6-1.1-51.3.
When does Indiana's new veteran property tax law take effect?
HEA 1210 was signed on March 12, 2026. The veteran provisions are retroactively effective January 1, 2026, so they apply to the 2026 assessment date and therefore to taxes payable in 2027 — not to the bill you are paying now. One provision reaches further back: the World War I surviving-spouse deduction was reinstated retroactive to January 1, 2025, affecting the 2025 assessment date and taxes payable 2026.
Will my Indiana property taxes go up under HEA 1210?
That depends on your rating, your home’s assessed value, and your local tax rate, and it cannot be answered generally. Two groups moved from a deduction to a flat credit: veterans with 10%–90% ratings who had the $24,960 deduction now receive a $350 credit, and veterans 62 or older with a 10%+ disability who had the $14,000 deduction now receive a $250 credit. The mechanism matters — a deduction reduces assessed value, so its cash worth scales with your home’s value and local rate, while a credit is a flat reduction of the bill. Your county auditor can tell you the actual effect on your bill.
Source: Indiana Department of Local Government Finance memorandum, "Legislation Affecting Deductions, Credits, and Exemptions", Jason Cockerill, Commissioner, 2026-05-27, covering House Enrolled Act 1210-2026, signed by Governor Mike Braun on 2026-03-12. Statutory citations are to the Indiana Code sections named throughout. Figures verified 2026-07-29.
A note on other sources: as of 2026-07-29, the Indiana Department of Veterans Affairs site had not been updated to reflect HEA 1210 and still described the pre-2026 system. Several third-party sites are circulating incomplete versions that omit the reapplication requirement entirely. Everything here comes from the DLGF memorandum and the Indiana Code.