Governor ceremonially signs new law to expand property tax relief for Hoosier veterans

STATEHOUSE (June 11, 2026) – The governor recently ceremonially signed into law a legislative effort supported by area lawmakers to expand property tax relief for Indiana’s veterans, specifically those who have sustained total disabilities in service to the nation.

House Enrolled Act 1210 provides tax relief for veterans with total disabilities by increasing the property tax deduction to cover 100% of the assessed value of their real property, replacing the current $14,000 deduction. Under the law, disabled veterans who qualify will not owe property tax on their primary residence. The new law also converts several existing veteran property tax deductions into property tax liability credits beginning with taxes imposed for the 2026 assessment year to provide a more direct benefit.

"This bill expands property tax relief for veterans, especially those living with disabilities," said State Rep. Matt Hostettler (R-Patoka). "Ensuring more of our veterans can afford to stay in their homes is a matter of both economic urgency and profound gratitude."

State Rep. Tim O'Brien (R-Evansville), who serves on the House Veterans Affairs and Public Safety Committee, said the legislation also broadens tax relief opportunities for other veterans through new and expanded credits. Along with allowing veterans with a 100% disability rating to deduct 100% of their home’s assessed value with no cap, the law establishes new stackable property tax credits to replace existing deductions, including a $250 credit for partially disabled veterans with a disability rating of at least 10% who are age 62 or older, and a $350 credit for veterans who served during wartime.

"Hoosier veterans put their lives on hold to serve this country, and providing further property tax relief is just a small thank you for that service," O'Brien said. "This relief will help our veterans and disabled service members who might be struggling to afford a home, or need financial assistance to stay in their current homes."

Under the new law, veterans who previously qualified for a property tax deduction will instead receive a credit applied directly to their local property tax liability. The changes will take effect beginning with the 2026 assessment date.  

State Rep. Wendy McNamara (R-Evansville) estimates the legislation will provide approximately $46.2 million in additional tax relief for veterans statewide beginning with taxes payable in 2027.

"Hoosier veterans stepped up to defend our country's freedoms," McNamara said. "This new law helps give back to those who have given so much to all of us."

To learn more about other new laws passed during the 2026 legislative session, visit iga.in.gov.

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State Rep. Matt Hostettler (R-Patoka) represents House District 64,
which includes portions of Gibson, Knox and Vanderburgh counties.
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State Rep. Tim O'Brien (R-Evansville) represents House District 78,
which includes portions of Vanderburgh and Warrick counties.
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State Rep. Wendy McNamara (R-Evansville) represents House District 76, 
which includes all of Posey County and a portion of Vanderburgh County.
Click here to download a high-resolution photo.