What is the Indiana property tax exemption for a 100% disabled veteran?

Indiana is mid-transition. For taxes payable in 2026 the long-standing deductions apply: $24,960 off assessed value for wartime veterans rated 10%+, plus $14,000 for totally disabled veterans (home assessed at $240,000 or less), stackable to $38,960. From the 2026 assessment (taxes payable 2027), a new law replaces all of that: totally disabled veterans (100% or individual unemployability) get a full exemption with no home-value cap.

Do 100% disabled veterans pay property tax in Indiana?

Through taxes payable in 2026, yes, beyond the old deductions (up to $38,960 of assessed value off, with a home-value cap). From the 2026 assessment, taxes payable 2027, no: totally disabled veterans (100% or individual unemployability) get a full exemption with no home-value cap. Your county auditor can tell you which rules apply to the bill you are currently paying.

Do surviving spouses keep the Indiana veteran property tax exemption?

A surviving spouse qualifies if the veteran met the requirements at death; spouses of service members killed in action also qualify for the credit tier.

How do I apply for the Indiana disabled veteran property tax exemption?

File with your county auditor (State Form 12662) with your DD-214 and VA award letter. Given the transition, confirm with the auditor which rules govern the bill you are paying.

By state · Indiana

Indiana’s property tax exemption for disabled veterans.

Totally disabled: full exemption from the 2026 assessment (in transition). Here is who qualifies, what it covers, and how to claim it.

Checked against state sources · July 16, 2026

At a 100% permanent & total rating: Indiana is mid-transition. For taxes payable in 2026 the long-standing deductions apply: $24,960 off assessed value for wartime veterans rated 10%+, plus $14,000 for totally disabled veterans (home assessed at $240,000 or less), stackable to $38,960. From the 2026 assessment (taxes payable 2027), a new law replaces all of that: totally disabled veterans (100% or individual unemployability) get a full exemption with no home-value cap.
Below 100%: Under the new law, partial ratings of 10 to 90% receive flat annual credits ($350 for wartime service-connected, $250 for veterans 62+ with 10%+) instead of assessed-value deductions.
Income test: None. The exemption does not depend on your income.
Surviving spouses: A surviving spouse qualifies if the veteran met the requirements at death; spouses of service members killed in action also qualify for the credit tier.
How to apply: File with your county auditor (State Form 12662) with your DD-214 and VA award letter. Given the transition, confirm with the auditor which rules govern the bill you are paying.
Worth knowing: The legislature rewrote this three times between 2025 and 2026 before landing on the full exemption for totally disabled veterans. Ignore any guide with dollar figures unless it says which payable year it means.

Before you count on this: exemption law changes by legislative session, and counties administer the details. Confirm current amounts and deadlines with your county assessor or the official source below. Figures on this page were checked July 16, 2026.

Official source: Indiana Department of Veterans Affairs — property tax benefits

A property-tax exemption lowers the monthly payment a lender counts in your file, which can raise what you qualify for. Run your numbers with the exemption’s effect via the buying-power calculator (use the property-tax override in advanced options), and see the funding fee guide for the other big disability-related saving.

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Common questions

Indiana exemption questions, answered.

What is the Indiana property tax exemption for a 100% disabled veteran?: Indiana is mid-transition. For taxes payable in 2026 the long-standing deductions apply: $24,960 off assessed value for wartime veterans rated 10%+, plus $14,000 for totally disabled veterans (home assessed at $240,000 or less), stackable to $38,960. From the 2026 assessment (taxes payable 2027), a new law replaces all of that: totally disabled veterans (100% or individual unemployability) get a full exemption with no home-value cap.
How much is the Indiana disabled veteran property tax exemption?: Totally disabled: full exemption from the 2026 assessment (in transition)
Do 100% disabled veterans pay property tax in Indiana?: Through taxes payable in 2026, yes, beyond the old deductions (up to $38,960 of assessed value off, with a home-value cap). From the 2026 assessment, taxes payable 2027, no: totally disabled veterans (100% or individual unemployability) get a full exemption with no home-value cap. Your county auditor can tell you which rules apply to the bill you are currently paying.
Do surviving spouses keep the Indiana veteran property tax exemption?: A surviving spouse qualifies if the veteran met the requirements at death; spouses of service members killed in action also qualify for the credit tier.
How do I apply for the Indiana disabled veteran property tax exemption?: File with your county auditor (State Form 12662) with your DD-214 and VA award letter. Given the transition, confirm with the auditor which rules govern the bill you are paying.

Property tax exemption rules and thresholds change; confirm current figures with your county assessor or state veterans' affairs office before applying.

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