Indiana rewrote its property-tax deduction for disabled veterans this year, and the biggest break is not automatic. A veteran with a total disability has to submit State Form 12662 to the county auditor by January 15 to get the full homestead deduction, which wipes out the taxable value of the home. Under a new state law, this year is also the one year when veterans who already had a deduction must start over.
What changed in the 2026 law?
Gov. Mike Braun signed House Bill 1210 on March 12, 2026, and it took effect July 1, according to the Allen County Auditor. The Indiana Department of Local Government Finance calls it HEA 1210-2026 in its guidance for counties.
The amended 100 percent deduction applies beginning with the 2026 assessment date, which determines taxes payable in 2027. For real property, there is no longer a maximum assessed value. The cap that existed before was removed for homes assessed as real estate…