Indiana Senior Property Tax Relief 2025 Guide: How Over 65 Homeowners Can Save Up to 14000 and Cap Their Tax Bill

If you are an Indiana homeowner over 65, property taxes can feel like a slow leak in your retirement budget. Assessments creep up year after year, but your income usually does not. The result: you are technically “house rich” and “cash anxious”.

Indiana has a surprisingly powerful solution for that problem. Actually, it has two.

The state offers an Over 65 Property Tax Deduction and an Over 65 Circuit Breaker Credit that work together to shrink your tax bill and stop big jumps from one year to the next. Used correctly, these benefits can knock up to 14,000 off your assessed value and then cap your taxes so they do not blow past a set limit.

And unlike some fussy programs, once you are in and you remain eligible, the help keeps coming year after year.

This guide walks you through, in plain English, how the program works, who qualifies, how much you can realistically save, and exactly what to do before the December 31 filing deadline if you want relief on your next years tax bill.

Indiana Senior Property Tax Relief at a Glance

What This Senior Property Tax Relief Actually Offers

Think of this program as a two-piece toolkit for senior homeowners.

First tool: the Over 65 Deduction.

This one directly cuts down the “assessed value” of your home for tax purposes. That is the number the county uses to calculate your bill. The deduction can reduce that value by up to 14,000 or half of the assessed value, whichever is smaller, and it is applied after your Homestead Standard Deduction.

For a modest home, 14,000 off the taxable value is not pocket change. It can mean a meaningful annual savings that repeats every year you remain eligible.

Here is a quick, realistic example:

• Your home is assessed at 180,000
• After the Homestead Standard Deduction, it drops to around 135,000
• The Over 65 Deduction then removes another 14,000
• Your taxable value is now 121,000

Every tax rate in your area is applied to a smaller number, which brings down both your spring and fall installments.

Second tool: the Over 65 Circuit Breaker Credit.

The deduction shrinks the base. The circuit breaker puts a lid on the total. Once you qualify and file the form, the county compares your tax bill (after deductions) to your allowed maximum — your property tax ceiling. If your bill is higher than that ceiling, the state steps in with a credit to bring it back down.

In practice, the credit works like an insurance policy against sudden spikes. If assessments in your area jump or your local rates climb, the credit keeps the bill from racing ahead faster than your income can handle.

Used together, the deduction and credit can:

• Push your tax bill down today
• Protect you from sharp increases tomorrow
• Help you stay in your home long term, even as values rise around you

And because these benefits stack with other Indiana deductions (like the Homestead and Supplemental Homestead deductions), seniors who plan carefully can cut their taxable value dramatically and stabilize their housing costs well into retirement.

Who Should Apply for the Indiana Over 65 Deduction and Credit

If you are thinking, “This sounds great, but do I actually qualify?”, here is how to check.

There are four big questions.

1. Are you at least 65 by year end?

You must be 65 or older by December 31 immediately before the assessment date (January 1). If you turn 65 on December 31, you squeak in. If your birthday is January 1, you wait a year.

If you co-own with a younger spouse or relative, that is fine. Only one owner needs to be 65 to open the door for the household, as long as income and other rules are met.

2. Do you own and live in the property as your main home?

You need to:

• Own the home outright, or
• Be buying it under a recorded land contract, and
• Actually live there as your principal residence.

This is tightly tied to Indiana’s homestead rules. You cannot claim this on a rental, vacation cottage, or your adult child’s house. No double dipping across two homes, either.

Co-ops, life estates, and some trust arrangements can qualify, but only if you are the one on the hook for the taxes and you still truly live there. Those situations are trickier, but not impossible.

3. Is the assessed value at or below 240,000?

The home’s gross assessed value cannot be more than 240,000 to qualify for this senior relief.

A couple of key points:

• The value is measured as of January 1 of the assessment year.
• If rising assessments push your value above 240,000, you could lose the deduction, though in some cases the credit might continue, especially if you are appealing the new value.

Tip: pull out your property record card or your last tax bill (TS-1). The assessed value is right there. If you are near 240,000, pay close attention to appeals and market shifts.

4. Are your household income and filing status under the limits?

For 2025, your adjusted gross income (AGI) must be:

• Under 32,610 if you are single
• Under 43,480 combined if you are married filing jointly

This is AGI, the number on your tax return, not your total cash flow. It usually includes:

• Wages
• Taxable portion of Social Security
• Pensions and some annuities
• Interest and some investment income

Non-taxable Social Security generally does not count toward AGI, but county auditors can and do ask for worksheets to make sure your numbers are accurate.

Real-world profiles who should absolutely look at this

• A widow in her late 70s living mostly on Social Security and a small pension in a 160,000 home.
• A married couple in their late 60s with about 40,000 AGI and a 200,000 house in a fast-growing county like Hamilton or Boone.
• A single retired teacher in Marion County whose income is modest, but whose neighborhood has skyrocketed in value over the last decade.

If you see yourself in any of these, you should treat this deduction and credit as a must-explore, not a maybe.

How the Deduction and Circuit Breaker Actually Reduce Your Bill

Property tax talk can get jargon-heavy quickly. Lets pull it apart.

Step 1: Assessed value and homestead deductions

Your county decides what your house is “worth” for tax purposes. That is your assessed value.

If it is your main home, you usually already get:

• The Homestead Standard Deduction (which can slash a big chunk off)
• Often the Supplemental Homestead Deduction (a percentage-based reduction on what is left)

These alone can cut your taxable base deeply.

Step 2: Over 65 Deduction kicks in

Once those homestead deductions are applied, the Over 65 Deduction steps in and subtracts the smaller of 14,000 or half your assessed value.

For lower-value homes, half might be under 14,000. For mid-range homes, you probably get the full 14,000.

This is not a one-time coupon. As long as you stay eligible, it is baked into your bill each year.

Step 3: Over 65 Circuit Breaker Credit caps the damage

After all deductions are applied, your county calculates what your bill would normally be.

Then they compare that to your allowed cap – your circuit breaker ceiling, which hinges on your gross assessed value and prior year liability.

If your bill is over that cap, the difference becomes a credit. You do not have to apply for the credit separately once you are in the system; the county applies it when they compute your taxes.

The result:

• Your spring and fall installments both show smaller amounts.
• Your TS-1 tax bill should show deduction codes for Homestead, Over 65, and possibly others, plus a circuit breaker credit line if you qualify.

Insider Tips for a Strong, Problem Free Application

This is not a competitive grant – if you qualify, you are in. But people still get tripped up and miss out, sometimes for years. Here is how to avoid that.

1. Treat the December 31 deadline as non negotiable

This program runs on a strict calendar. If you file on January 2, you are waiting another entire year for relief.

Give yourself a self-imposed deadline of December 1. That gives you room for:

• Tracking down documents
• Fixing mistakes
• Dealing with holiday office closures

2. Bring your income proof, not just your best estimate

County auditors can and do verify income. If you guess instead of document, you are inviting delays.

Gather:

• Your latest federal and state tax returns
• SSA-1099 forms for Social Security
• Pension or retirement statements

If you do not file taxes, talk to the auditors office early. Many will accept an income affidavit plus supporting documents. Do not leave this until the last week of December.

3. Double check your assessed value before you file

If your home is anywhere near 240,000, look up your property record online or call the assessors office.

If your assessment jumped and pushed you above the threshold, you might want to:

• File an appeal if you believe the new value is unreasonable
• Ask whether an appeal could help you stay within the program limit

You are trying to avoid a situation where you qualify one year, lose it the next, and then scramble to get back in.

4. File for other homestead deductions at the same time

Think of your senior deduction as part of a package, not a stand-alone perk.

While you are in the auditors office or on the DLGF site, ask:

• Do I already have the Homestead Standard Deduction?
• Is the Supplemental Homestead Deduction applied?
• Am I eligible for a Mortgage Deduction or any veteran-related deductions?

Stacking these can create surprisingly large savings. There is no prize for leaving money on the table.

5. Keep both spouses on the paperwork when possible

If you are married and both names are on the deed, make sure both names are on:

• The application form
• The property record, if possible

That way, if the older spouse passes away first, the survivor has a smoother path to keeping the deduction. Cleaning this up after a death is emotionally and administratively harder.

6. Read your next tax bill like a hawk

Once you file, do not assume everything is perfect. When the next TS-1 bill arrives:

• Confirm the deduction codes are showing
• Check that the taxable value dropped roughly as expected
• Look for a circuit breaker credit, if your taxes were high enough to trigger one

If something looks off, call the auditors office right away. It is much easier to fix problems in the same year than to chase retroactive adjustments.

Application Timeline: Working Backward from December 31

Here is a realistic, low-stress timeline that assumes you want the deduction and credit for next years taxes.

By October 15
Pull your latest property tax bill and check:

• Assessed value (is it under 240,000?)
• Existing deductions already in place

If the assessed value looks wrong or way too high, talk to the assessors office about your options.

Late October – Early November
Gather your income proof:

• Federal and state tax returns
• SSA-1099 and pension statements
• Any other documents that explain your income situation

If you did not file a return last year, ask the county what they will accept instead.

By mid November
Download or pick up State Form 43708. Fill in everything you can:

• Parcel number
• Property address
• Legal description (often on your deed or tax bill)
• Ownership details

If the property is jointly owned, both owners should review and sign.

Late November – Early December
Visit or mail your completed form and documents to the county auditors office.

If you are mailing, use a trackable method and keep copies of everything. Ask the office if they accept email or scanned submissions; some counties do.

By mid December
Call or check online (if your county has a portal) to confirm the application has been received and is being processed.

Following spring tax cycle
When your spring bill arrives, verify that:

• The Over 65 Deduction code appears
• Your taxable value is lower
• Any circuit breaker credit appears if your bill is still relatively high

Required Materials and How to Prepare Them

County offices are busy, but you can make your file the easy one they process quickly. Here is what you will usually need, and how to avoid hiccups.

You should expect to pull together:

• Completed State Form 43708
  Fill it out legibly. If your handwriting is hard to read, consider typing where possible. Double check parcel numbers and legal descriptions; tiny typos can send staff hunting for the wrong property.

• Proof of age
  A drivers license, state ID, or birth certificate usually does the job. Make sure the copy is clear and not cut off at the edges.

• Proof of ownership
  This might be a recorded deed, a land contract, or life estate papers. The key is that it shows your name and matches the property in question.

• Income verification
  Federal Form 1040, Indiana IT-40, SSA-1099, pension statements, and any other relevant income records. If you did not file taxes, ask for an income affidavit template or guidance so the auditor does not have to chase you later.

• Proof of residency
  Utility bills, voter registration, or other evidence tying you to that address as your main home. This is especially important if you own more than one property.

If your situation involves a trust, life estate, or disability-related program, expect to add:

• Trust or life estate documents showing you still have the right to occupy and are responsible for taxes
• Any physician certifications tied to other deductions you may be claiming

Before you submit, make yourself a file folder (paper or digital) with everything inside. That way, if the auditor calls with a question, you can answer it with documents in hand.

What Makes an Application Stand Out to County Auditors

Nobody is scoring your application like a grant review panel, but there are traits that make county staff breathe a sigh of relief instead of groan.

1. Clarity and consistency

Names, parcel numbers, and addresses should all match:

• The deed
• The tax bill
• Your drivers license

If your legal name and the name on the deed differ (for example, a nickname or previous married name), explain it in a short note and include any supporting documentation.

2. Clean income story

If your AGI is clearly under the limit and backed by documents, your file is easy. If you are right on the line, or your paperwork is incomplete, staff may need additional back-and-forth, which slows everything down.

If your income is close to the threshold, it can help to:

• Highlight the AGI line on your return
• Include a short note explaining any unusual one-time items

3. Evidence that this is your principal residence

When in doubt, auditors look at:

• Where you vote
• Where your drivers license is registered
• Where your mail goes

If those all point to the same address you are applying for, you are in good shape.

4. Responsiveness

Some offices will reach out to clarify income, trust documents, or ownership quirks. If you return calls, respond to letters, or drop off documents quickly, your application can stay on track instead of being pushed to a “problem stack”.

Common Mistakes That Cost Seniors Money (and How to Avoid Them)

1. Missing the December 31 deadline by a few days

Many people assume there is grace. There usually is not.

Fix: Aim to file by early December, not the last week of the year. Treat holiday closures as a real obstacle, because they are.

2. Assuming it is automatic once you turn 65

Nothing here happens automatically just because you had a birthday. You have to apply with Form 43708.

Fix: As you approach 65, add “call county auditor” to your retirement checklist alongside Medicare and Social Security decisions.

3. Claiming on the wrong property

Some folks try to apply for the deduction on a second home or a house they rent out. The rules are clear: it must be your principal residence.

Fix: If you split time between two homes, decide which is truly your main home and make sure all your other documents (license, voter registration) match that address.

4. Ignoring income changes

Required minimum distributions or part-time work can drag your income above the limit.

Fix: Keep an eye on your AGI every year. If you cross the line, you are required to tell the auditor. It is better to lose the deduction for one year than to face back taxes and penalties later.

5. Forgetting to coordinate with your mortgage escrow

If your lender escrows property taxes, your monthly payment is based on old, higher tax numbers.

Fix: After the deduction and credit show up on your bill, send a copy to your lender and ask for an escrow review. Otherwise, you might have a big escrow surplus later instead of smaller monthly payments now.

Frequently Asked Questions about Indiana Senior Property Tax Relief

Do I need to reapply every year?

Generally, no. Once granted, the Over 65 Deduction usually stays on your property as long as:

• You still live there
• You still meet the income and value limits
• Ownership has not changed in a way that breaks eligibility

However, counties can ask for updated income information. If they do, answer quickly so they do not remove the deduction.

Can I have this deduction on a second home or rental?

No. The deduction and circuit breaker apply only to your principal residence – the home tied to your homestead deduction. Second homes, rentals, and vacation properties are out.

What if my spouse is under 65?

You are still fine if at least one owner is 65 or older and the household meets the income and value limits. Put both names on the form if both are on the deed; that way the younger spouse is protected if they outlive the older one.

What happens if my home value rises above 240,000?

If your gross assessed value climbs over the limit, you may lose eligibility for the Over 65 Deduction. In some situations, especially during an active appeal of the assessment, you might still see some protection from the circuit breaker credit.

If your assessment just jumped, talk to the assessor about an appeal. A successful appeal could bring you back under the threshold.

My income jumped one year but will drop again next year. Do I lose the benefit forever?

No. If your income goes above the limit, you should tell the auditor. You might lose the deduction for the tax year tied to that income, but you can reapply when your income drops back under the threshold.

Is this the same as the senior tax deferral program?

No. The Over 65 Deduction and Circuit Breaker reduce your current tax bill. Some counties separately offer tax deferral loans for seniors, which delay payment but must eventually be repaid, often with interest. It is like the difference between a discount and a loan.

In many cases, seniors will want to use the deduction and credit first, and then consider deferral only if tax bills are still unmanageable.

Can this work with veteran or disability deductions?

Yes, often. Indiana has special deductions for disabled veterans and some disability conditions. These can stack with the Over 65 Deduction as long as you meet each programs rules. This is where talking to the auditor or a local legal aid office can really pay off.

How to Apply and Get Started

If you are an Indiana homeowner aged 65 or older and any part of you wonders whether your tax bill is higher than it has to be, treat this program as a serious opportunity, not trivia.

Here is a straightforward action plan:

1. Confirm your eligibility.
   Pull your last tax bill and your latest tax return. Make sure:

   • Your home is assessed at 240,000 or less, and
   • Your AGI is under the senior limits for your filing status.

2. Gather your documents.
   Put together proof of age, ownership, income, and residency. Make photocopies; do not hand over originals unless the office explicitly needs to see them.

3. Get State Form 43708.
   You can usually download it via the Indiana Department of Local Government Finance or pick it up from your county auditors office.

4. Complete and submit the form before December 31.
   Ask the auditors office how they prefer to receive it: in person, by mail, or electronically. If you mail it close to the deadline, use a method with tracking.

5. Watch for the change on your next tax bill.
   When your TS-1 arrives, check carefully that the Over 65 Deduction and, if applicable, the circuit breaker credit are listed and your taxable value has dropped.

Ready to check the legal details or direct your clients or relatives to the official source?

Full Details and Official Statute

You can read the statutory language and related guidance at the official Indiana General Assembly site here:
Visit the official opportunity page:
https://iga.in.gov/laws/2024/ic/titles/6/articles/1.1/chapters/12#6-1.1-12-9

For plain-language instructions and forms, also consult the Indiana Department of Local Government Finance and your county auditors office. Between those two, you will get exactly what you need to claim the deduction, secure the credit, and keep more of your retirement savings in your pocket instead of in your property tax bill.