Senate Bill 1 — the most significant overhaul to Indiana's property tax system since 2008 — is now in effect. The first bills calculated under the new rules just landed. Whether you save money, lose money, or break even depends entirely on what you do in the next 45 days.
SB 1 introduces three major changes that interact in ways that surprise most homeowners on first read.
A direct credit — not a deduction — applied to the bottom-line dollar amount you owe. Three hundred dollars off your bill, period.
On top of the $300, homestead properties receive a 10% reduction on calculated tax liability. On a typical $4,500 Hamilton County bill, that's $450 more — $750 total savings per year.
Year-over-year property tax increases on homestead properties are now capped at 2% — regardless of how much your assessed value jumps. Over a decade, this is the difference between staying in your home and being taxed out of it.
You only receive all three SB 1 benefits if your homestead deduction is properly filed and current with your county auditor. Common situations that can void it: refinancing into a different name, placing the home in a trust without proper paperwork, or a marriage or divorce that changed the title. If it lapses, you lose the $300 credit, the 10% credit, AND the 2% cap — all from a single administrative oversight.
Your tax is calculated as: assessed value × tax rate, minus credits. SB 1 affects credits and rate — but NOT assessed value. A surprising percentage of Hamilton County homes are over-assessed, meaning owners pay tax on a number bigger than their home is actually worth.
The appeal window is short: 45 days after you receive your TS-1 tax statement. Miss it, and you wait a full year for the next opportunity.
Pull up your county's online assessor portal and search for your property. Look for "homestead deduction" or "homestead exemption." If you've had a major life event since originally filing — refinance, trust transfer, marriage, divorce — call your county auditor's office. The refile form is short. The benefits you'd lose can exceed $1,000 per year.
Pull 3–5 comparable sales from the last 12 months — same neighborhood, similar square footage and condition. If your assessed value is more than 10% higher than the average comp sale price, you have grounds for an appeal. Indiana law allows an informal appeal first; sometimes a phone call with your comp sheet is enough.
Form 130 is the petition for review filed with your county's PTABOA. You can file it yourself or hire a property tax attorney on contingency — they only get paid if you win. For homes over $400,000 with assessment errors above $50,000, contingency representation is usually worth it.
Property tax law and estate planning intersect in ways most homeowners don't realize until it's too late. If your home is held in your individual name and you pass away, it goes through probate — public, slow, and expensive. During probate, the homestead deduction can be temporarily suspended, resulting in a one-year property tax bill $1,500–$3,000 higher than your spouse would otherwise have paid.
Paired with a transfer-on-death deed, this avoids probate and protects homestead status — but has Medicaid look-back implications.
Ownership passes automatically to the surviving spouse, bypassing probate — but control and tax implications vary.
A simpler option for some families, but it carries its own tax, control, and Medicaid considerations.
Property tax bills don't pause when life changes. If a primary earner dies, becomes disabled, or faces a long illness, the property tax obligation continues — along with the mortgage and utilities.
A modestly priced term life policy and a disability income policy together can ensure the surviving spouse or family has the cash flow to keep the homestead in place and maintain homestead deduction status during the most critical window.
The property tax math, assessment appeal, and estate planning structure go to your CPA and attorney. The cash-flow protection layer that keeps the family in the house long enough to make those plans work — that's the conversation we should be having on a fifteen-minute call.
On February 21st, Lithos Advisors is partnering with a local Hindu temple in the Indianapolis area to host a free community event covering estate planning fundamentals and property tax appeal walkthroughs — with licensed Indiana CPAs and attorneys present to answer specific questions.
Open to the entire community regardless of faith background. Designed for Indianapolis-area homeowners navigating SB 1 and estate planning gaps.
Property tax appeal walkthroughs, homestead deduction verification, and estate planning fundamentals — with licensed professionals on-site.
Free. A recording will be available afterward for those who can't attend in person.
Senate Bill 1 is real, the savings are real, and the window is short. The 45 days after your tax statement arrives is the most important window of the year for Indiana homeowners.
Indiana's New Property Tax Law Just Hit Your Mailbox