Indiana just made one of the more significant moves of any state this year to ease the property tax burden on disabled veterans. Governor Mike Braun signed House Enrolled Act 1210 into law this spring, marked with a ceremonial signing event in June 2026, overhauling how the state delivers tax relief to veterans with service-connected disabilities and to older veterans statewide.
From a Capped Deduction to Full Relief
Under the old system, totally disabled veterans could claim a property tax deduction capped at $14,000 of assessed value, a fixed number that lost real value every year as home prices climbed. HEA 1210 replaces that cap entirely: veterans with a total disability rating now qualify for a deduction covering 100% of their property's assessed value, according to Bloomberg Tax. Eligible surviving spouses who have not remarried keep the same benefit.
New Credits for Wartime and Older Veterans
The law also creates two new, direct property tax credits rather than deductions. Wartime veterans with at least a 10% service-connected disability rating qualify for a $350 annual credit, and veterans age 62 or older qualify for a $250 credit, per reporting from WTHI-TV. Unlike a deduction, which only reduces the assessed value used to calculate a tax bill, a credit is applied straight to the amount owed, a more direct and predictable form of relief.
One tradeoff worth knowing: under the old deduction system, veterans could roll any unused deduction amount toward Indiana BMV fees, like vehicle registration. That carryover option goes away under the new credit structure, so veterans who relied on it should plan for the change.
What It Means for Hoosier Veterans
The changes take effect with the 2026 property assessment date, and the state estimates the combined deductions and credits will return roughly $46.2 million per year to disabled veterans, according to 14 News. Indiana veterans who think they qualify should contact their county auditor's office to confirm filing deadlines and required documentation, since relief like this is rarely automatic and usually requires an application.
For a full rundown of what Indiana offers veterans beyond this new law, from tuition benefits to vehicle registration discounts, see our Indiana veteran benefits guide.
Property tax relief is one more way states are recognizing what veterans have earned. Operation WarriorFit works toward the same goal in a different lane, covering race entry fees so financial barriers never stand between veterans and staying active. If you're a veteran, service member, or first responder, check your eligibility for a free race entry today.