Indiana’s disabled veterans could soon experience considerable property tax relief if state legislation continues to advance. State Rep. Ben Smaltz has thrown his support behind a measure that aims to increase the property tax deduction for veterans who are totally disabled. Under the new proposal, tax benefits would rise to cover 100% of the assessed value of their real property, a significant increase from the current $14,000 deduction. This information comes via a statement from Smaltz’s office.
“Home should be a place of security, not financial strain for Hoosier veterans,” Smaltz said. The bill not only raises deductions for fully disabled veterans but also converts certain existing property tax deductions into credits, applicable for taxes imposed for the 2026 assessment year. An estimation attached to the measure forecasts an additional $23.2 million in tax relief for disabled veterans, a notable increase commencing with taxes payable in 2027. These changes are encapsulated in House Bill 1210, which recently passed the House and will soon face Senate scrutiny, Smaltz’s office disclosed.
The proposed revision also updates property tax relief for other veteran demographics and their surviving spouses. These updates include establishing new credits like a $250 credit for partially disabled veterans over the age of 62 with at least a 10% disability rating and a $350 credit for veterans who served during wartime. Additionally, it restores the World War I surviving spouse deduction to $18,720, currently benefiting 18 survivors state-wide. All these figures, along with references to the proposed benefits, are detailed in the recent press release…