The Indiana House of Representatives has approved an amended Senate Bill 1, a measure that proposes to bring significant property tax relief to homeowners across the Hoosier State. The bill promises savings of $1.3 billion in property taxes over a span of three years as it moves closer to becoming law.
"Today, the House passed robust property tax relief for Hoosiers. Two-thirds of Hoosier homeowners will see a lower bill in 2026 than they did in 2025, and nearly all will see relief," Indiana House Speaker Todd Huston (R-Fishers) was quoted saying in a statement obtained by Indiana House Republicans. Emphasizing the significance of the bill, Huston added, "We look forward to getting this bill across the finish line and real savings into the pocketbooks of Hoosiers."
The bill's amendments lay out several components for tax relief, including a 10% property tax credit up to $300 that will apply to all homestead property tax bills starting from 2026. This will be further complemented by stackable credits for seniors on fixed incomes and disabled veterans, potentially aggregating up to $400. In a wider fiscal context, the bill also aims to cap the total local income tax rate at 2.9%, a reduction set to decrease local income tax revenue capacity by $1.9 billion.
Moreover, the legislation is set to strictly regulate local government debt, which currently stands at $54.3 billion. As part of its transparency measures, it plans to require referenda to only be held during general elections, aiming to coincide with periods of higher voter turnout. The bill also mandates an increase in the clarity of such referenda questions, specifically regarding their tax impacts. "Under this bill, nearly all Hoosiers are going to see property tax relief," State Rep. Jeff Thompson (R-Lizton), chair of the House Ways and Means Committee, told Indiana House Republicans. "This legislation is a massive win for Hoosier homeowners and taxpayers, in the near term and in the future."
The bill's suite of reforms extends to the creation of a Property Tax Transparency Portal, which will allow taxpayers to actively compare their current tax bill with proposed tax rate changes. Additionally, it hopes to exempt more small businesses from the business personal property tax and reduce the assessed value for farmers, projected to save them roughly $125 million over three years. With the bill having cleared the House, it now circles back to the Senate for final approval. The current legislative session will conclude by April 29, expectation is high amongst lawmakers and constituents alike for these measures to be swiftly enacted.
