It seems inevitable that Indiana legislators will cut property taxes for someone next legislative session. It probably won’t be me. I’m a young adult, after all, and those in my age group don’t vote enough for politicians to care all that much.
The vast majority of any property tax cuts will likely go to seniors instead.
It’s bad policy. It pits generations against each other. Millennials and Gen Z are already frustrated by paying into a system that delivers most of its benefits to older homeowners.
There’s a way forward, though, that benefits everyone. Indiana legislators should abolish property taxes for seniors, but only if they downsize.
Seniors have an income problem, not an age problem
Seniors want property tax cuts because their home values have spiked since they purchased them, in some cases decades ago. Many now live on fixed retirement incomes, so they argue they can’t afford to pay property taxes that match the current market values of their homes.
If income is the problem, though, age alone isn’t a sufficient reason to treat seniors differently than a 30-year-old mother of three working two jobs to keep her house after her husband passed away. Financial situations change for a lot of people. Credits or deductions for low-income homeowners regardless of age are a fair way to take them into account.
If anything, young adults have a greater need for housing assistance simply by virtue of their age. They have had less time to accrue assets, build a credit history and set aside savings for a down payment. First-time homebuyers haven’t built the equity that a homeowner has, either. That equity helps cover the down payment and closing costs that block first-time buyers.
There are other generation-specific barriers. Millennials own less than two-thirds of the real estate baby boomers did at the same age. The median age of a first-time homebuyer was 40 in 2025 — an all-time high. The share of Americans under 30 who are married and own a home has collapsed from 52% in 1960 to 12% in 2025.
It’s much harder for young people to get married and have children if they can’t afford a home. Without greater family formation, the birth rate will continue to collapse and the social support systems seniors depend on will lose their financial sustainability.
Seniors need to downsize
If lawmakers are determined to single out seniors for property tax relief, then there’s a version that at least does some good for everyone else, too.
As seniors age, their children move out of their homes and they are left with far more space than they need and are able to easily maintain. Existing property tax credits — often framed as “helping grandma stay in her home” — insulate seniors and discourage them from downsizing.
Nearly 40% of baby boomers, in fact, have stayed in their homes for longer than 20 years.
Gov. Mike Braun’s proposal to completely exempt seniors from property taxes — with a special focus on those who have paid off their homes — would make that problem far worse. So would abolishing property taxes, as suggested by the new Indiana Republican Party platform and state Rep. J.D. Prescott’s proposal to replace property taxes with a 7% tax on services.
Downsizing benefits seniors. It lowers the cost of living and home maintenance. It allows seniors to access the equity stored in their homes if they move to a cheaper one. Moving from a two-story home to a one-story home eliminates stairs and can help prevent falls. It also provides an opportunity for seniors to move closer to family and loved ones who might be able to help them age in place.
Downsizing also benefits young families. When seniors — who often live in houses with three or more bedrooms, including one or two spare bedrooms — move out, they free up larger homes for the growing families that desperately need them.
If legislators insist on more property tax breaks solely for seniors, they should replace the current system of senior property tax deductions and credits. A larger homestead deduction for seniors who live in a one- or two-bedroom home or with younger family members in a multigenerational home would be a much better alternative.
That would provide highly targeted property tax relief for the seniors who need it most. It would also eliminate a perverse incentive for seniors to stay in homes far too big for them to maintain on their own.
Seniors will disproportionately benefit from any property tax cuts, given they own property at higher rates. Massive cuts are bound to promote generational resentment. Good policy alternatives benefit every generation, not just the ones that vote.
Contact Jacob Stewart at 317-444-4683 or jacob.stewart@indystar.com. Follow him on X, Instagram, Facebook and TikTok.
This article originally appeared on Indianapolis Star: End property taxes for Indiana seniors — but make them downsize | Opinion
Reporting by Jacob Stewart, Indianapolis Star / Indianapolis Star
USA TODAY Network via Reuters Connect
By Jacob Stewart, Indianapolis Star | USA TODAY Network
