The state of Indiana has now provided most of the guidance needed to implement this new property tax relief program. While some details may still be clarified in the coming months, counties have received enough information to begin assisting eligible veterans and their families with applications for the new property tax credits.
Applications may be submitted beginning July 1, 2026. The new benefits will first appear on 2027 property tax bills. (see below for new process).
We will continue to share updates as additional guidance becomes available and are ready to begin helping eligible veterans and surviving spouses determine whether they qualify for these new benefits.
What changed
Indiana approved major updates under SEA 1210 that shift the current system from property tax deductions (which reduce assessed value) to more straightforward tax credits applied directly to your property tax bill.
For many veterans, this will make the benefit easier to understand.
How the new system will work
Beginning with the 2026 tax year (payable in 2027), eligible veterans may qualify for the following:
Veterans rated 100% service-connected or Individual Unemployability (IU):
Veterans with a 10%-90% service-connected disability:
Veterans with both wartime service and a qualifying disability rating between 10%-90%:
Veterans age 62 or older with a 10%-90% service-connected disability and wartime service:
One key change is that the new system removes prior assessed value limits and applies the benefit directly to the tax bill.
Wartime service periods
For benefits tied to wartime service, Indiana recognizes:
Surviving spouses
A surviving spouse may continue the benefit if:
New application process for Monroe County veterans
Monroe County veterans should contact the Monroe County Veteran Service Office to begin the application process. Additionally, we are holding tax credit walk-in clinics on July 10, 17, 24 and 31. You will need to bring a copy of your VA Award Letter or Annual VA Tax letter (the letter VA mails to you in November each year) and a copy of your DD214 for us to process your paperwork.
Contact: Steven Miller, Veteran Service Officer, at 812-349-2537 or Andrew Blake, Assistant Veteran Service Officer at812-349-2568.
A new application is required for all veterans receiving a property tax benefit, including those currently receiving a disabled veteran property tax deduction. The state of Indiana has created State Form 12662 (Application for Disabled Veteran Property Tax Credit), and every eligible veteran will need to complete and submit this new form to continue receiving benefits under the updated program.
The Monroe County Veteran Service Office will assist veterans by completing:
Veterans should be prepared to provide supporting documentation, including:
Once the Veteran Service Office completes its portion of the application, the veteran will take the form, their DD214, and their VA Award Letter to the Monroe County Auditor’s Office for processing.
If you are interested in volunteering to drive for the DAV Van, need assistance filing a VA disability claim, or have questions about federal, state or local veterans benefits, please contact my office. Steven Miller, Monroe County Veteran Service Officer: 812-349-2537, smiller@co.monroe.in.us.
This article originally appeared on The Herald-Times: Disabled veterans need to know about new property tax relief program
Reporting by Steven Miller, For Veterans / The Herald-Times
USA TODAY Network via Reuters Connect
By Steven Miller, For Veterans | USA TODAY Network
