Bill would let veterans rated unable to work claim a property tax deduction

If passed, the bill would let an eligible veteran subtract $14,000 from the value used to calculate property taxes. This route covers veterans the VA rates individually unemployable who own real property or certain mobile or manufactured homes, or are buying such property under a qualifying contract. The veteran must have served at least 90 days, received an honorable discharge, and provided the required disability proof. The veteran must own or be buying the property when filing. A buyer's contract must be recorded and make the buyer responsible for property taxes. A $240,000 limit on the combined assessed value of the veteran's Indiana property generally applies. The VA rating would count for assessment dates on or after January 1, 2026.

If passed, the bill would let an eligible surviving spouse claim the veteran deduction. This route covers a surviving spouse of a veteran the VA rated individually unemployable. The veteran must have met the service and disability requirements at death. The spouse must own or be buying the property when filing. The $240,000 combined property value limit generally applies. The veteran's eligibility is checked at death, and the spouse's property ownership is checked when the spouse files.

The state would include guidance about veteran deductions on property tax statements. The guidance would cover who qualifies for veteran deductions and how to apply, including veterans the VA rates individually unemployable. This section would take effect July 1, 2026, and covers statements provided after December 31, 2025.