Hoosiers across Indiana can breathe a little easier when it comes to property taxes, thanks to a new piece of legislation. State Reps. Jim Pressel and Jake Teshka are backing Senate Enrolled Act 1, a robust package of property tax relief that brings good news for homeowners. The law, already signed and sealed, is set to save Hoosier homeowners a whopping $1.3 billion over the next three years. With this change, two-thirds of Hoosier homeowners are projected to pay less in property taxes in 2026 than they did in 2025, providing some financial breathing room in the midst of economic shifts.
Among the relief measures, Hoosiers can look forward to a 10% property tax credit, which will to quickly roll out up to $300 on all homestead property tax bills beginning in 2026. Additional much-needed relief is on the way for those who need it most, including fixed-income seniors and disabled veterans. The law doesn't stop there; it also phases in a two-thirds property tax deduction for homesteads, introduces a one-third property tax deduction for other residential properties and farmers, and exempts more small businesses from the clutches of business personal property tax. An assessment value reduction for farmland will also mean that Hoosier farmers can look forward to saving about $125 million over a three-year stretch.
The legislation isn't only providing immediate relief but also looking to the future with long-term reforms. In an ambitious move, the law will reduce the total local income taxes that local governments can collect by $1.9 billion. It places stronger controls to rein in a staggering $54.3 billion in local government debt and mandates referenda to take place during general elections, which typically see higher voter turnouts. This ensures an increase in transparency for those referenda questions, hopefully clarifying the tax impact for voters. On top of that, it's creating a Property Tax Transparency Portal, which allows taxpayers to compare their current tax bill with proposed tax rate changes, according to the Indiana House Republicans.
"Our goal is to unburden Hoosiers from the weight of increasing property taxes," Pressel said in a statement obtained by the Indiana House Republicans. "With this new law, I believe we are taking the right steps to protect property owners and still provide the resources and services needed to maintain our growing communities." Teshka added, "This is a practical and impactful victory for homeowners that will save them on property taxes long-term."
These new measures are expected to not only alleviate the immediate strain on Hoosier homeowners but also pave the way for sustainable fiscal practices within the state. Stakeholders and residents can track the progress and details of the legislative session, which must conclude by April 29, at the official government site. In the meantime, Indiana's approach to property tax relief stands as an example of proactive legislation designed to steadily support its citizens.
