By State Sen. Daryl Schmitt (R-Jasper)
In recent years, Hoosiers have been understandably concerned about the large increases in property taxes caused by high inflation.
This year, Indiana Senate prioritized and passed into law property tax reforms that are projected to lower two-thirds of Hoosier homeowners property taxes in 2026 compared to their 2025 bill.
Senate Enrolled Act 1 provides $1.3 billion in savings for homeowners over the next three years through several benefits including a credit to reduce their property tax bill on homesteads by 10% with a maximum amount of $300.
The new law will also phase in a large increase to the homestead standard deduction so that by 2031 homes will get a deduction worth two-thirds of their assessed value. This process will begin in 2026 and grow each year through 2031.
With Senate Enrolled Act 1, senior citizens will now see more generous property tax credits compared to the previous property tax deductions, meaning eligible senior homeowners will now experience savings even if their bill is already at the property tax cap.
The legislation also gives counties the option to allow homeowners to defer as much as $500 of their property tax bill each year, up to a maximum of $10,000 overall, until their home is sold. This is aimed at providing relief for Hoosiers on a fixed income, like senior citizens, and those who are struggling financially, and prevent them from losing their home.
It is important to note that property taxes rates are set by local governments and that Senate Enrolled Act 1 will not impact property tax bills due in 2025, since local government budgets for 2025 were determined before the bill became law. Hoosiers will start seeing the benefits of this law on their 2026 property tax bills.
Senate Enrolled Act 1 was signed into law by the governor last month.
As always, constituents can reach out to me with any questions or concerns by email at s48@iga.in.gov or by phone at 1-800-382-9467.
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State Sen. Daryl Schmitt (R-Jasper) represents Senate District 48,
which includes Crawford, Dubois, Gibson, Perry, Pike and Spencer counties.
Click here to download a high-resolution photo.
