Property Tax Deductions

Property Tax Deductions

2018 pay 2019 Tax Deductions – The property tax deduction deadline is January 5, 2019. To be eligible for these deductions in 2019, persons must be the owner of their primary residence as of December 31, 2018. The IN Property Tax Benefits form from the DLGF is printable in the Adobe Acrobat (pdf) format. Click here to go to the State of Indiana’s website for more information on Property Tax Benefits.

Homestead Deduction

Homestead Standard Deduction
(Up to $45,000 if residential assessed value is 75,000 or over / 60% of residential assessed value if under 75,000) 

Must reside on the property and own by December 31. Exemption amount dependent on assessment.  Also eligible for a Supplemental Homestead Deduction which is a percentage credit on assessed value after the Standard Homestead Deduction is applied.

If an individual whose property becomes ineligible for the homestead deduction fails to file a certified statment with the County Auditor notifying the auditor of the ineligibility within sixty (60) days after the date of change, the individual is liable for the amount of the deduction allowed for that real property plus a civil penalty equal to ten persent (10%) of the additional taxes due.

Use this link for the electronic form from the State of Indiana’s site. This form can be mailed or brought into the Auditor’s Office located at 126 E Third St. Rm 220 Mt. Vernon, IN 47620.

Supplemental Homestead Deduction
(After deducting the Standard Deduction from the residential assessed valuation, an additional 35% of the residential assessed value up to 600,000 and 25% of the residential assessed value over 600,000 is deducted.) 

An individual who is entitled to a Homestead Standard Deduction is also entitled to receive a Supplemental Homestead Deduction (effective for taxes payable in 2009) which is a percentage credit after the Standard Homestead is applied but before the application of any other deduction, exemption or credit.

Homestead Standard Deduction, HEA 1004-2011 amending IC 6-1.1-12-37 on Married Couples Maintaining Separate Households.

Mortgage Deduction

($3,000) 
Must own as of December 31. If you re-finance, you must refile. Mortgage must be recorded before filing for exemption. Here is a link to the IN State website to view the Mortgage Deduction form. This form can be mailed or brought into the Auditor’s Office at 126 E Third St. Rm 220 Mt. Vernon, IN 47620.

Age Deduction

Over 65
($12,480) 

Must be over 65 years of age by December 31 of the year preceding filing for application; was the owner or contract buyer of the property for at least one year prior to claiming the deduction, and total adjusted gross income less than $25,000, when combined with that of his or her spouse and any individual with whom he or she shares ownership; reside on property. Assessed value on residential property not to exceed $182,430.

Use this link for the electronic form from the State of Indiana’s site. This form can be mailed (with copy of prior year’s 1040 federal return pages 1 and 2) or brought into the Auditor’s Office located at 126 E Third St. Rm 220 Mt. Vernon, IN 47620.

Age Circuit Breaker Credit

Over 65 Circuit Breaker Credit
(Prevents eligible senior citizens property tax liability from increasing by more than 2 percent.) 

Must be over 65 years of age by December 31 of the year preceding filing for application; was the owner or contract buyer of the property for at least one year prior to claiming the deduction and reside on property. Total adjusted gross income less than $30,000; when combined with that of his or her spouse and any individual with whom he or she shares ownership, gross income not to exceed $40,000. Assessed value on residential property not to exceed $159,999. For more information and Frequently Asked Questions for the Over 65 Circuit Breaker, click here.

Geothermal & Solar Deductions

STATEMENT FOR DEDUCTION OF ASSESSED VALUATION
(Attributed to Solar Energy System/ Wind, Geothermal or Hydroelectric Power Device) 

All claims for a deduction filed on a pursuant or hydroelectric system or device must be accompanied by proof of certification of qualification by the Department of Environmental Management pursuant to IC 6-1.1-12-35. See form for filing dates and guidelines. Click here to view the form. You must have the Adobe reader to print this form. Should you need the reader, we have provided a link to obtain the free program to the left.

Veterans Deduction

$12,480) Veterans Disability and World War I
$18,720) and Spouses Exemptions – vary in
$24,960) eligibility; ask about them.

Use this link for the electronic form from the State of Indiana’s site. This form can be mailed (with copy of letter of disability from the local Veterans Administration Office) or brought into the Auditor’s Office located at 126 E Third St. Rm 220 Mt. Vernon, IN 47620.

Disability/Blind Deduction

Blind or Disabled
($12,480) 

Taxable gross income under $17,000; proof of blindness or disability; reside on property.

Use this link for the electronic form from the State of Indiana’s site. This form can be mailed (with copy of your proof of disability; either an awards letter of a letter from the Social Security Administration stating you are disabled) or brought into the Auditor’s Office located at 126 E Third St. Rm 220 Mt. Vernon, IN 47620.

Heritage Barn Deduction