How Homestead Exemptions Work in Indiana (And How to File)
If you recently purchased a home in Indiana — or have owned one for years without looking into this — you may be leaving money on the table every year. Indiana’s homestead exemption is one of the most valuable property tax benefits available to homeowners, and it’s completely free to apply for. In this post, we break down exactly what the Indiana homestead exemption is, how much it saves you, who qualifies, and how to file.
What Is the Indiana Homestead Exemption?
The Indiana homestead exemption (officially called the Homestead Standard Deduction) reduces the assessed value of your primary residence before property taxes are calculated — which directly lowers your annual tax bill. Indiana offers two layers of homestead-related deductions:
- Homestead Standard Deduction: Reduces your home’s assessed value by 60%, up to a maximum of $48,000.
- Supplemental Homestead Deduction: An additional percentage reduction applied to the remaining assessed value after the standard deduction — providing even more savings on higher-value homes.
How Much Does the Indiana Homestead Exemption Save?
The actual dollar savings depend on your home’s assessed value and your local property tax rate. At a 1.5% effective tax rate on a $200,000 Indianapolis home, the homestead exemption can save homeowners approximately $1,500 or more per year compared to paying taxes on the full assessed value. Hamilton County homeowners on a $350,000 home can typically save over $1,300 annually. Contact your county assessor’s office or use the Indiana DLGF property tax calculator for a precise estimate.
Who Qualifies for the Indiana Homestead Exemption?
- Primary residence only: The property must be your principal place of residence — where you live the majority of the year, are registered to vote, and file your taxes.
- Owner-occupied: You must own the property. Renters are not eligible.
- Only one property: You can only claim the exemption on one property if you own multiple homes.
- Individuals and trusts: Available to individuals and certain living trusts where the beneficiary occupies the property as their primary residence.
The Indiana Supplemental Homestead Deduction
On top of the standard deduction, Indiana automatically applies a Supplemental Homestead Deduction to properties already receiving the standard deduction. It is calculated as 35% of the assessed value remaining after the standard deduction (on the portion up to $600,000), and 25% of any assessed value above $600,000. You do not need to file a separate application — it is applied automatically when you receive the standard deduction.
How to File for the Indiana Homestead Exemption
Step 1: Get Form HC10
Download or pick up Indiana State Form HC10 (Application for Homestead Standard Deduction and Supplemental Homestead Deduction) from your county assessor’s website or office, or from the Indiana DLGF website at in.gov/dlgf.
Step 2: Complete the Form
The form asks for your name, property address, parcel number, confirmation that the property is your primary residence, and your Social Security number (used to ensure the exemption is only claimed on one property statewide).
Step 3: Submit to Your County Assessor by December 31
Submit the completed form to your county assessor’s office — in person, by mail, or online. The deadline is December 31 of the year you want the deduction to apply. If you close on a home in 2025 and file by December 31, 2025, the deduction will appear on your 2025 pay-2026 property tax bill.
Step 4: Verify on Your Tax Bill
Once approved, the deduction appears on your county property tax statement. Most Indiana counties have online property search tools where you can verify your exemptions.
Where to File by Indiana County
- Marion County (Indianapolis): Marion County Assessor — assessor.marionco.net — (317) 327-4907
- Hamilton County (Carmel, Fishers, Noblesville): hamiltoncounty.in.gov — (317) 776-9617
- Hendricks County (Avon, Plainfield): (317) 745-9207
- Johnson County (Greenwood, Franklin): (317) 346-4701
- Boone County (Zionsville, Lebanon): (765) 482-3510
- Allen County (Fort Wayne): (260) 449-7123
Other Indiana Property Tax Deductions to Know About
- Over-65 Deduction: Homeowners 65+ with assessed value under $240,000 and income under $30,000 can receive an additional deduction of up to $14,000.
- Disabled Veterans Deduction: Veterans with service-connected disabilities may qualify for deductions up to $24,960 — or a full property tax exemption for 100% disabled veterans.
- Blind or Disabled Deduction: Homeowners who are blind or disabled with income under $17,000 can receive a deduction of up to $12,480.
- Mortgage Deduction: Homeowners with a mortgage on their primary residence can deduct up to $3,000 from assessed value, separate from the homestead deduction.
Homestead Exemption and Your Mortgage Payment
If you have an escrow account, your lender collects property taxes as part of your monthly mortgage payment. When your homestead exemption is approved and your property tax bill decreases, your lender will perform an annual escrow analysis and reduce your monthly payment accordingly. There is typically a 1-2 year lag as the escrow account is analyzed and adjusted.
Frequently Asked Questions: Indiana Homestead Exemption
Do I have to file the Indiana homestead exemption every year?
No — you only need to file once as long as you continue to own and occupy the property as your primary residence. The exemption renews automatically each year. However, if you move, sell, or stop using the property as your primary residence, you are required by law to notify your county assessor.
What happens if I don’t file the homestead exemption in Indiana?
You simply don’t receive the tax savings — there’s no penalty for not filing. But you’ll pay significantly more in property taxes each year than you have to. You cannot recoup prior-year savings, so it’s worth filing as soon as possible.
Can I claim the homestead exemption on a home I rent out?
No — the homestead exemption is strictly limited to your primary residence. Investment and rental properties are not eligible. Falsely claiming the exemption is considered tax fraud in Indiana and can result in penalties, back taxes, and legal consequences.
Does the homestead exemption affect my home’s value or my ability to sell?
No — the homestead exemption has no effect on your home’s market value or your ability to sell. It simply reduces the assessed value used to calculate your property tax bill. When you sell, the exemption is removed and the new owner must file their own application.
I just bought a home in Indiana. When should I file?
File as soon as possible after closing — don’t wait until December. While the December 31 deadline is the cutoff for that year’s deduction, filing early ensures you don’t miss it. Most county assessor offices accept walk-in or online applications shortly after your deed is recorded.
Just Bought a Home? Let Greg Rank Help With Your Mortgage
Filing your homestead exemption is just one item on the post-closing checklist for Indiana homeowners. If you’re in the process of buying — or thinking about it — Greg Rank can help you understand all the financial aspects of homeownership in Indiana, from mortgage pre-approval to explaining your closing costs and tax obligations.
📞 Call or text Greg Rank: (317) 603-0912
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