Property Tax Deductions/ Credits

January 5, 2017 is the deadline to file your property tax deductions for 2016 taxes payable in 2017. If you purchased your property by December 31, 2016, your application must be signed and dated prior to December 31, 2016 and filed in the Vanderburgh County Auditor's Office by January 5, 2017. To be eligible for these deductions in 2017, persons must be the owner of their primary residence as of December 31, 2016. If you have previously filed a deduction on your property, you would only need to re-file if you have moved or refinanced.

The following deductions /credits are available to those who qualify:

  • Homestead Deduction (Standard and Supplemental)- Once filed on your residence, only needs to be re-filed if you move.
    • If you are entitled to a Standard Homestead Deduction, you are entitled to receive the Supplemental Homestead Deduction.
    • Both the Standard and Supplemental Homestead Deductions are under one application and can be filed on a Sales Disclosure Form.
  • Mortgage Deduction- Once filed, only needs to be re-filed if you have refinanced. Must bring:
    • Date of Closing
    • Amount of Mortgage
    • Name of Finance Company or Institution.
  • Over 65 Deduction
    • Must turn 65 by 12/31/15
    • Combined adjusted gross income limit is $25,000
    • Must bring copies of pages one (1) and two (2) of 1040 for 2015 (copies for all listed on property)
    • Assessed value on residential property not to exceed $182,430
    • Must own property or been buying on contract for at least one year before claiming deduction.
  • Over 65 Circuit Breaker Credit - Prevents eligible senior citizen's property tax liability from increasing by more than 2 percent.
    • Must qualify for Homestead Standard Deduction and turn 65 by 12/31/15
    • Adjusted gross income not to exceed $30,000; combined adjusted gross income not to exceed $40,000
    • Must bring copies of pages one (1) and two (2) of 1040 for 2015 (copies for all listed on property)
    • Assessed value on residential property not to exceed $159,999
    • Must own property or been buying on contract for at least one year before claiming deduction.
  • Blind / Disability Deduction - Must bring:
    • Doctor's statement for proof of blindness or disability, or
    • An Awards Letter from Social Security for proof of disability.
  • Veterans Deduction- with total or partial disability. Must bring:
    • VA Statement of Benefit Record (Form 20-5455) with a code one listed in Item # 15 or
    • Pension Certificate or
    • Award of Compensation or
    • Letter of Disability from the local Veterans Administration Department located at 201 NW Fourth St., Room 303 Old Courthouse Building.
  • Deductions for Model Homes-
    • 50% on assessed value of improvements.
    • May file on property that consists of a single family residence, single family townhouse, or single family condominium unit that has never been occupied as a principal residence and is used as a display or demonstration to perspective buyers. Owner's regular office space is not considered a model residence (sales office is considered part of the model residence).
    • Must file by January 2, 2016 for 2016 taxes payable in 2017.
    • Must file each year.
    • Model residences located in a TIF area are not eligible for this exemption.
    • Note: The Deduction for Model Home Residence (IC 6-1.1-12.6) was effective January 1, 2009. The law stated that the deduction applies only to a model residence that is assessed for the assessment date for 2009 or later. This translates to the deduction being first available for 2009Pay2010. In May of 2009, HB 1071 made the Deduction for Model Residence retroactive to 2008Pay2009. Generally, a qualified owner of a Model Residence is entitled to a 50% deduction of the assessed value of a model residence. This does not include the land on which it is located.
    • Click here for the Application for Model Residence Deduction with instructions and qualifications.
  • Deductions for Residence in Inventory-
    • The deduction is available to a person that builds a single family residence, a single family townhouse, or a single family condominium unit and holds it for sale in the ordinary course of the person's trade or business.
    • The application must be filed for each assessment date for which the property owner wishes to receive this deduction.
    • This deduction is available to qualifying properties first assessed as partially completed or fully completed structures for the assessment date of March 1, 2012 and later years.
    • For more information click Application for Residence in Inventory Deduction form with instructions and qualifications.
    • Your deductions need to be filed in the Auditor's Office, Room 208 of the Civic Center Complex (on the second floor.) Our office hours are 8:00 AM to 4:30 PM Monday through Friday. Please call 812-435-5302 with any questions. If you would like to fill out a form online, visit the State's website at http://www.in.gov/dlgf/2344.htm.