Indiana’s New Property Tax Law changes 2026: 7 Changes That Could Save Homeowners Money

Indiana homeowners are seeing some significant changes to the way property tax relief works following Senate Enrolled Act 1 of 2025. Unfortunately, there’s also a lot of misinformation circulating about what the new law actually does.

One of the most common things I’ve heard is, “Indiana property taxes can only increase 2% now.”

That’s not true for every homeowner — but there is an important 2% protection for certain qualifying senior homeowners.

In my latest episode of Mr. Hendricks County Explains, I break down seven of the biggest changes Indiana homeowners should know about.

What Changed?

Among the changes discussed in the video are:

• New property tax relief for qualifying homestead owners
• A new $150 Over 65 Property Tax Credit
• Removal of the previous assessed-value limitation for certain senior benefits
• Expanded eligibility for qualifying seniors
• The Over 65 Circuit Breaker Credit and its important 2% protection
• A new $125 Blind or Disabled Property Tax Credit
• The January 15 application deadline for certain credits

What Is the 2% Senior Property Tax Protection?

This is one of the most important parts of the new law — and also one of the most misunderstood.

Indiana did not simply cap every homeowner’s annual property tax increase at 2%.

Instead, qualifying senior homeowners may be eligible for the Over 65 Circuit Breaker Credit, which is designed to generally limit increases in their homestead property tax liability to approximately 2% over the prior year’s liability.

For example, if a qualifying homeowner had $2,000 in property tax liability the previous year, a 2% increase would equal $40.

For seniors living on retirement income, protection from large year-over-year property tax increases can be extremely valuable.

There are age, income, homestead and other eligibility requirements, so homeowners should contact their County Auditor to determine whether they qualify.

Don’t Forget January 15

Some of these benefits require homeowners to take action.

If you believe you may qualify — particularly if you’re 65 or older, blind or disabled — contact your County Auditor and make sure you understand which credits are available and whether an application is required.

And if you have parents or grandparents who own a home in Indiana, please share this information with them. They may qualify for benefits they don’t even know are available.

Watch the full video:https://youtu.be/Zcvk1jaYKZ0

I’m Tony Janko, Broker/Owner of Janko Realty Group and Mr. Hendricks County. I created the Mr. Hendricks County Explains series to help Indiana homeowners better understand real estate, property taxes, homeownership and the issues that can affect one of their largest investments.