Indiana Disabled Veteran Property Tax Deduction: File by Jan 15, 2027

Indiana veterans with a total disability can now deduct 100% of their home's assessed value from property taxes. The old $240,000 home value cap is gone. To get it on the bill due in 2027, file State Form 12662 with your county auditor by January 15, 2027. If you had the old deduction, you must file again.

This applies to all Indiana counties, including Clark, Floyd, Harrison, Scott and Washington in Southern Indiana. Sources are the Indiana Department of Veterans Affairs (IDVA) and the Indiana Department of Local Government Finance (DLGF).

Disclaimer: This post is general information, not tax or legal advice. Rules, forms and deadlines can change after this post is published. Before you file, confirm the current requirements with your county auditor or your County Veteran Service Officer. Agent Intro is not responsible for errors, omissions or later changes.

What changed for Indiana disabled veterans?

House Enrolled Act 1210 (2026) changed the deduction in two big ways:

• The deduction is now 100% of assessed value. It used to be a flat $14,000.
• There is no home value cap. The old rule cut off homes assessed above $240,000. Starting with the 2026 assessment date (taxes paid in 2027), there is no maximum for real property.

The DLGF says this applies to "2026 Pay 2027," meaning taxes first due in 2027.

Who qualifies for the 100% deduction?

Per IDVA, you may qualify if you:

1. Served in the Armed Forces for at least 90 days
2. Received an honorable discharge
3. Have a total disability
4. Lived in Indiana for at least one year before the assessment date

The home must be your principal place of residence, and you must own it or be buying it under a recorded contract. A surviving spouse may also qualify if the veteran met the service and disability rules at the time of death. The DLGF says a spouse who remarries is no longer eligible.

The DLGF FAQ says the law does not state the total disability must be service-connected. Proof is a VA pension certificate or award of compensation, or an IDVA certificate of eligibility.

What is the filing deadline?

File by January 15, 2027 for taxes due in 2027. The DLGF says the form must be completed and dated by that date. If you mail it, it must be postmarked by January 15. You cannot apply late and get the deduction back for that year.

Do I need to reapply if I already had the veteran deduction?

Yes, for the 100% deduction. The DLGF says the old $14,000 deduction does not carry over for 2026 Pay 2027. Instead, the auditor applies a $250 credit. To get the 100% deduction, you must file a new application. Once it's approved, the $250 credit comes off and the 100% deduction goes on.

What form do I file, and where?

Use State Form 12662. IDVA says State Form 51186 is no longer used.

File it with the county auditor in the county where the home is. You can file in person, or by mail postmarked by January 15, 2027. If you miss the deadline, you cannot fix it by applying late. Your County Veteran Service Officer can help you fill it out.

IDVA also lists a mail option to its Indianapolis headquarters. That is only for verifying Section VIII (military service and disability). It does not count as filing with your county. File with your auditor on time.

If you have a VA tax abatement letter, you can take the form straight to the auditor. IDVA does not need to sign Section VIII.

Bring these documents (IDVA list):

• DD214
• U.S. Department of Veterans Affairs disability award letter

What if I'm not totally disabled?

You may qualify for a credit instead. Credits come off your tax bill directly.

Credit	Who may qualify (IDVA)
$350	Served during a war period, honorable discharge, service-connected disability rating of 10% or more
$250	Served at least 90 days, honorable discharge, age 62 or older, disability rating of at least 10%

The two credits can stack, up to $600. The DLGF says you cannot receive these credits in the same year as the 100% deduction. War periods recognized by IDVA include World War II, Korea, Vietnam and the Gulf War (August 2, 1990 to a date not yet set).

A separate deduction exists for a home donated to a veteran by a tax-exempt group. It runs from 50% to 100% of assessed value, matching a disability rating of 50% or more. It can't be combined with the 100% deduction.

Southern Indiana county auditor offices

County	Auditor page
Clark	Clark County Auditor's Office
Floyd	Floyd County Auditor's Office
Harrison	Harrison County Auditor
Scott	Scott County Auditor
Washington	Washington County Auditor

Call ahead to confirm hours and whether they take forms by mail or email.

Does this matter if I'm buying a home?

Yes. The deduction follows you, not the house. If you buy a new home, you need to file for that property. The DLGF example: buy on September 1, 2026, and you can file by January 15, 2027 for taxes due in 2027, if you meet every rule, including one year of Indiana residency. Ask your Real Estate Agent to factor your expected tax bill into your budget.

Quick FAQ

Is the 100% deduction automatic? No. You must file State Form 12662 with your county auditor by January 15, 2027, in person or by mail postmarked by that date.

Is there a home value limit? Not for real property, starting with taxes due in 2027. Mobile or manufactured homes not assessed as real property have a separate limit.

Can a surviving spouse apply? Yes, if the veteran met the service and disability rules at death and the spouse owns the home. Eligibility ends if the spouse remarries.

Can I get the 100% deduction and the $350 credit? No. You can't get the credits in the same year as the 100% deduction.

Key takeaways

• Totally disabled Indiana veterans can deduct 100% of their home's assessed value.
• The $240,000 cap is gone for taxes due in 2027.
• File State Form 12662 with your county auditor by January 15, 2027.
• If you had the old deduction, you must file again.
• Partly disabled veterans may get $250 and $350 credits, up to $600.

Disclaimer: This post is general information, not tax or legal advice. Rules, forms and deadlines can change after this post is published. Before you file, confirm the current requirements with your county auditor or your County Veteran Service Officer. Agent Intro is not responsible for errors, omissions or later changes.

Sources: Indiana Department of Veterans Affairs, Disabled Veteran Property Tax Benefits; Indiana DLGF, Veterans Deductions FAQ (Aug 12, 2026). Accessed October 16, 2026.

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