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Homeowner Deduction Guide
This online guide explains the various deductions available to residential property owners. If you think you qualify, you can contact the Marion County Auditor's office for information.
Deductions That Could Reduce Your Property Taxes:
In order for these deductions to be applied to your property, you must be the owner as of March 1st, and the application must be filed on or before June 10th in order to be credited to the following year's taxes. For mobile homes, you must file by March 31st.
NOTE: If you refinance or have a deed change at any time, you will need to re-file these deductions.
HOMESTEAD DEDUCTION/CREDIT
If you own a home or are buying on a recorded contract, and use it as your primary place of residence, your home and up to one acre of land could qualify for a homeowner's deduction. The deduction is either one half of your assessed valuation or $45,000 for 2006 pay 2007 taxes, whichever is less. The maximum homestead credit amount equals 25% of your gross tax (up to 17% state and 8% county depending on your taxing district).
Future Homestead Deduction amounts:
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2007 pay 2008 taxes, $45,000,
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2008 pay 2009 taxes, $44,000,
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2009 pay 2010 taxes, $43,000,
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2010 pay 2011 taxes, $42,000,
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2011 pay 2012 taxes, $41,000; and
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2012 pay 2013 taxes, $40,000.
MORTGAGE DEDUCTION
If you are buying property on a recorded mortgage or a recorded contract, and you are a resident of the State of Indiana, you could qualify for a mortgage deduction. The value of the deduction may not exceed the amount of the indebtedness.
The deduction is either one half of your assessed valuation or $3,000, whichever is less. A person owning more than one property may not receive mortgage deductions totaling more than $3,000.
DEDUCTION FOR PERSONS OVER AGE 65 OR SURVIVING SPOUSES
If you own property or are buying on a recorded contract, and you were over the age of 65 December 31 of the prior year, you could qualify for this deduction if you meet the following requirements:
- Have a combined adjusted gross income of less than $25,000.
- Have an assessed valuation of no more than $182,430.
- You owned the property one year before March 1 of the current year.
For the surviving spouse deduction you must be over the age of 60, and the deceased spouse must have been at least age 65 at time of death. The deduction is either one half of your assessed valuation or $12,480, whichever is less.
DEDUCTION FOR BLIND OR DISABLED PERSONS
If you own property or are buying on a recorded contract, use it as your primary place of residence, and are blind or disabled, you could qualify for this deduction if you meet the following requirements:
- Your individual gross taxable income must be less than $17,000.
- A statement from your physician or a Social Security Disability Statement must evidence disability.
The deduction is either the amount of your assessment or $12,480, whichever is less.
TOTALLY DISABLED VETERAN
If you are a veteran and totally disabled or are at least age 62 with a disability of at least 10%, you could qualify for this deduction if you meet the following requirements:
- Your assessed value (Real & Personal does not exceed $143,160.
- Disability is evidenced by VA form 20-5455, Pension Certificate, Award of Compensation, or Letter of Disability.
- You served in the Military for 90 days and received an honorable discharge.
The deduction is either the amount of your assessment or $12,480, whichever is less. Any amount remaining could be applied to personal property, mobile home and excise tax.
PARTIALLY DISABLED VETERAN
If you are a veteran and have a service-connected wartime disability of 10% or more, you could qualify for this deduction if you meet the following requirements:
- Disability is evidenced by VA form 20-5455, Pension Certificate, Award of Compensation, or Letter of Disability.
- You received an honorable discharge.
The deduction is either the amount of your assessment or $24,960, whichever is less. Any amount remaining could be applied to personal property, mobile home and excise tax.
OTHER
For information on the following deductions, please contact our office at (317) 327-4646 for further assistance:
- World War I Veteran or Spouse
- Solar Energy
- Wind Power Device
- Hydroelectric Power Device
- Geothermal Device
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