Indiana Senate Bill 1 is the most significant property tax overhaul since 2008 — and the first bills under the new rules have already hit mailboxes.
What you do in the next 45 days determines whether you save $750+ or leave it on the table.
A $300 flat homestead credit applied directly off the bottom line of your tax bill.
An extra 10% credit calculated on your total tax liability — on top of the flat credit.
Homestead property tax increases are now capped at 2% per year, regardless of assessment growth.
Together, these three provisions represent a meaningful shift in how Indiana homeowners experience property taxation — but only if your homestead status is active and your assessment is accurate.
Off the bottom line
On $4,500 tax bill
Per year, tax-free
For a typical Hamilton County home with a $4,500 annual tax bill, SB 1 delivers $750 in combined annual savings — the equivalent of a $750 raise that the IRS can't touch.
Hamilton County home values are up 15–20% since 2022. Under old rules, your tax bill could spike dramatically with each reassessment — with no ceiling.
Under the new law, your homestead property tax can grow by a maximum of 2% per year — regardless of how fast your assessed value climbs.
Over a decade, this is the difference between staying in your home and being taxed out of it.
No active homestead = no $300 credit, no 10% credit, no 2% cap. Your homestead status can quietly void after a refinance into a different name, placing property into a trust without proper paperwork, marriage or divorce, or simply moving and forgetting to update records.
Property tax = assessed value × rate, minus credits. SB 1 affects credits and rate — not the assessed value. If your home is over-assessed, you're paying on a value larger than your home is worth. The appeal window is 45 days after your TS-1 statement.
Pull up your county assessor portal today. Look for "homestead deduction" and confirm it is active and current. If you've had a major life event since filing, call the county auditor directly.
Pull 3–5 comparable sales from the same neighborhood, similar square footage, and condition — from the last 12 months. If your assessment is more than 10% above the average of those sales, you have grounds for appeal.
Form 130 is your petition to the county PTABOA. File within 45 days of your TS-1 statement. DIY for small errors; consider a contingency-fee specialist for large ones (typical break-even: $400K+ home with $50K+ assessment error).
If your home is held in an individual name, it goes through probate after death — and homestead status can temporarily suspend during that process. That translates to $1,500–$3,000 in extra property tax during the worst year of your spouse's life.
Solutions vary by situation and should be tailored with an Indiana estate attorney:
Property tax doesn't pause when life happens. A disability, death, or unexpected income disruption can put homestead status — and all the SB 1 savings — at risk.
Ensures the surviving family has the cash flow to keep paying property taxes and maintain homestead status without financial panic.
Replaces lost income if you can't work, so tax bills are paid on time and estate planning adjustments can be made without urgency.
Together, these protections buy your family the time to make thoughtful decisions — not rushed ones — during difficult moments.
Join us at an Indianapolis-area Hindu temple for a free, open-to-the-community event covering everything you need to act on SB 1 and protect your family's financial future.
Book a personalized session to review your homestead status, assessment, and estate plan. calendly.com/indusroyal
Reserve your seat at our next community webinar. form.indusroyal.com
Read more in-depth guides on property tax, estate planning, and financial protection. indusroyal.com/blog
Listen to Glaciers to Wealth for financial planning insights. podcast.glacierstowealth.com
Your Property Tax Bill Just Changed