Confused about what you can still claim on your Marion County property tax bill after Indiana’s recent changes? You are not alone, especially with the former mortgage deduction gone and new credits phasing in. In this guide, you will learn what changed, how the homestead deduction works, how to check your status in Indianapolis, and what to expect from the 2025 reform. Let’s dive in.
Homestead vs mortgage in Indiana
The homestead deduction is an Indiana property tax benefit for your primary residence. It reduces the assessed value used to calculate your bill, using a statutory formula set by state law. You can review the assessed value deductions chapter in the Indiana Code for details and history of changes to homestead rules.
By contrast, Indiana’s separate mortgage deduction on assessed value was repealed for assessments beginning January 1, 2023. The state increased the homestead deduction to help offset that repeal, as summarized in the 2023 state tax changes. Do not confuse this with your federal income tax.
The federal mortgage interest deduction is different. It is a federal income tax item you may claim if you itemize, subject to IRS limits and rules in Publication 936.
- Indiana Code background on assessed value deductions: Indiana Code Title 6, Article 1.1, Chapter 12
- 2023 repeal and homestead increase summary: Tax Foundation overview
- Federal rules: IRS Publication 936
What changed since 2023
For taxes based on assessments dated January 1, 2023 and later, counties no longer apply the old mortgage assessed value deduction. The state adjusted the homestead deduction amounts in that same period, so your bill’s line items may look different than before. You can confirm the repeal context and current statutory framework in the Indiana Code and independent summaries of the 2023 changes.
SB1 2025: what to expect
In 2025, Indiana passed a property tax reform package known as SB1. It phases in changes to homestead deduction mechanics and adds a homeowner credit that appears on future bills. The timing and dollar impact vary by county and taxing district, so expect a multi‑year rollout rather than a one‑time change.
- Legislative overview of the 2025 package: SB1 update summary
Marion County: check and file
Here is a simple checklist to stay on top of your homestead status in Indianapolis:
Verify your current deductions. Use the City of Indianapolis and Marion County online property services to search your parcel and view “current deductions.” Start at the city-county portal and follow the property tax links: Indianapolis & Marion County portal.
Confirm after closing or refinancing. Title companies often submit homestead filings at closing, but you should still check that the deduction appears on your county record and bill.
If the homestead deduction is missing, act. Apply through the county portal or contact the Marion County Auditor’s office for the correct form and current process. Forms and online services can change, so use the official portal linked above.
Mind filing windows. Deadlines can differ by deduction and year. For timing context used by county auditors, review State Board of Accounts resources, then confirm the exact year’s deadline with the Marion County Auditor: SBOA county auditor resources.
Keep records. Save closing documents that show any filings made on your behalf, then confirm they posted to your parcel.
Simple example of the math
Assume an assessed value of $200,000. The homestead deduction uses a formula set in statute that removes a portion of assessed value, up to limits in law. After the deduction, the lower assessed value is used to compute your tax using your taxing district’s rates. Under SB1, additional credits and phased adjustments may then reduce the bill further, depending on the year and your district.
Because taxing rates and SB1 phase-ins vary across Marion County, check your parcel on the county portal or contact the Marion County Auditor for an estimate tied to your address.
Looking at a move and want clarity on how these deductions could affect your budget or timing? Reach out to Chaggar & White Realty for a local, one‑on‑one plan that fits your goals in the Indianapolis area.
FAQs
What is the difference between Indiana’s homestead deduction and the old mortgage deduction?
- The homestead deduction reduces assessed value for your primary residence and still applies. The separate state mortgage assessed value deduction was repealed for assessments starting January 1, 2023, with homestead amounts increased to help offset that change. See the Indiana Code chapter on deductions and the 2023 state changes summary.
Does Indiana’s mortgage deduction repeal affect my federal mortgage interest deduction?
- No. The federal mortgage interest deduction is a separate income tax item and remains governed by IRS rules. Review IRS Publication 936 for limits and eligibility.
How do I check my homestead deduction in Marion County?
- Use the Indianapolis and Marion County property services portal to search your parcel and view “current deductions,” or contact the Marion County Auditor through the portal: Indy.gov city-county portal.
I refinanced in 2024. Do I need to refile anything for Marion County?
- The state mortgage assessed value deduction no longer applies to assessments after January 1, 2023. Homestead filings may be handled at closing, but you should verify your deduction appears correctly on the county record and bill. For specifics, contact the Marion County Auditor and review the Indiana Code deduction chapter.
When is the deadline to file for a homestead deduction in Marion County?
- Filing windows can vary by deduction and year. For timing context used by county auditors, see the State Board of Accounts resources, then confirm the current year’s deadline with the Marion County Auditor through the Indy.gov portal.
What will SB1 2025 mean for my 2026 bill in Marion County?
- SB1 phases in homestead-related changes and a homeowner credit over several years, with local impacts varying by taxing district. Start with this SB1 update summary and check your parcel on the county portal for the most current bill details.
