Homeowner Deduction Guide
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This online guide explains the various deductions available to residential property owners.  If you think you qualify, you can contact the Marion County Auditor's office for information.

Deductions That Could Reduce Your Property Taxes:

Beginning with the 2008 pay 2009 tax cycle, in order for these deduction to be applied to your property, you must be the owner as of December  31st, and the application must be filed on or before December 31st of the year in which you seek the deduction.  For mobile homes, you must file by March 31st.

NOTES: 

1. If you refinance at any time you will need to re-file the mortgage deduction.

2. Re-filing of the Homestead deduction is only necessary if the property is sold or the title substantially changed.

3. For the 2007 pay 2008 tax cycle the deadline for filing deductions was October 15, 2007. 

4. Prior to the 2007 pay 2008 tax cycle, the taxpayer must have been the owner of the home before March 1st and applied for the deduction before June 10th of the year in which the deduction was to be applied to the property.

5.  A taxpayer cannot receive the same deduction on multiple properties, and with the exception of the Mortgage deduction, the credit must be applied to your principal place of residence. 

6.  The below provisions apply to properties owned within Marion County and throughout the State of Indiana. 

HOMESTEAD DEDUCTION

If you own a home or are buying on a recorded contract, and use it as your primary place of residence, your home and up to one acre of land could qualify for a homeowner's deduction.  A taxpayer cannot receive the Homestead Deduction in multiple states as the homestead is considered the “principle place of residence”.  The deduction is either 60% of your assessed valuation or a maximum of $45,000. 

SUPPLEMENTAL HOMESTEAD DEDUCTION

Equals the Sum of the Following:

(1) thirtyfive percent (35%) of the assessed value that is less than six hundred thousand dollars ($600,000).

(2) twentyfive percent (25%) of the assessed value that is more than six hundred thousand dollars ($600,000).

MORTGAGE DEDUCTION

If you are buying property on a recorded mortgage or a recorded contract, and you are a resident of the State of Indiana, you could qualify for a mortgage deduction. The value of the deduction may not exceed the amount of the indebtedness.

The deduction is either one half of your assessed valuation or $3,000, whichever is less. A person owning more than one property may not receive mortgage deductions totaling more than $3,000.

DEDUCTION FOR PERSONS OVER AGE 65 OR SURVIVING SPOUSES

If you own property or are buying on a recorded contract, and you were over the age of 65 December 31 of the prior year.For the surviving spouse deduction you must be over the age of 60, and the deceased spouse must have been at least age 65 at time of death.

You could qualify for this deduction if you meet the following requirements:

OVER 65 Deduction

  • Have a combined adjusted gross income of less than $25,000.
  • Have an assessed valuation of no more than $182,430.
  • You owned the property one year before March 1 of the current year.

The deduction is either one half of your assessed valuation or $12,480, whichever is less.

OVER 65 Circuit Breaker

  • Have a combined adjusted gross income of $40,000 or less or an individual income of $30,000 or less.
  • Have an assessed valuation of no more than $160,000
  • You owned the property one year before March 1 of the current year.

Prevents eligible senior citizen's property tax liability from increasing by more than 2 percent.

DEDUCTION FOR BLIND OR DISABLED PERSONS

If you own property or are buying on a recorded contract, use it as your primary place of residence, and are blind or disabled, you could qualify for this deduction if you meet the following requirements:

  • Your individual gross taxable income must be less than $17,000.
  • A statement from your physician or a Social Security Disability Statement must evidence disability.

The deduction is either the amount of your assessment or $12,480, whichever is less.

TOTALLY DISABLED VETERAN

If you are a veteran and totally disabled or are at least age 62 with a disability of at least 10%, you could qualify for this deduction if you meet the following requirements:

  • Your assessed value (Real & Personal does not exceed $143,160.
  • Disability is evidenced by VA form 20-5455, Pension Certificate, Award of Compensation, or Letter of Disability.
  • You served in the Military for 90 days and received an honorable discharge.

The deduction is either the amount of your assessment or $12,480, whichever is less.  Any amount remaining could be applied to personal property, mobile home and excise tax.

PARTIALLY DISABLED VETERAN

If you are a veteran and have a service-connected wartime disability of 10% or more, you could qualify for this deduction if you meet the following requirements:

  • Disability is evidenced by VA form 20-5455, Pension Certificate, Award of Compensation, or Letter of Disability.
  • You received an honorable discharge.

The deduction is either the amount of your assessment or $24,960, whichever is less. Any amount remaining could be applied to personal property, mobile home and excise tax.

OTHER

For information on the following deductions, please contact our office at (317) 327-4646 for further assistance:

  • World War I Veteran or Spouse
  • Solar Energy
  • Wind Power Device
  • Hydroelectric Power Device
  • Geothermal Device