Hoosiers across Indiana can look forward to seeing some relief in their property tax bills come 2026, thanks to new legislation that was recently signed into law. State Reps. Matt Commons (R-Williamsport) and Mark Genda (R-Frankfort), in their support for Senate Enrolled Act 1, have championed a package they believe will alleviate some of the financial pressures faced by homeowners, seniors, disabled veterans, and local farmers.
Senate Enrolled Act 1, which navigated the legislative channels to become law as confirmed by Indiana House Republicans, targets a $1.3 billion property tax cut for Hoosier homeowners over a span of three years. Starting in 2026, a 10% property tax credit, capped at $300, will be applied to all homestead property tax bills. According to the announcement by Reps. Commons and Genda, two-thirds of Hoosier homeowners will see lower bills in 2026 than they did in 2025.
In the same breath, SEA 1 introduces measures aimed at small business and agricultural support. After the law becomes effective, more Hoosier small businesses are exempt from paying business personal property tax, and assessed values for farmland will decrease, with an anticipated savings of about $125 million over three years for Hoosier farmers. "With this new law, we are lowering property taxes while giving Hoosiers additional tools for a more transparent process," Rep. Commons told Indiana House Republicans, highlighting the inclusivity of the measure's benefits.
Beyond immediate relief, SEA 1 heralds broader reforms intended to reign in local government spending and debt. "The strain of continually increasing property taxes and need help," said Rep. Genda, pointing to the urgency of the issue, "This new law will help homeowners, small business owners, veterans and farmers by reducing these costs and allowing them to keep more of their hard-earned money," according to Indiana House Republicans. The legislation reduces the ceiling for local income tax collections by local governments by a total of $1.9 billion, and it puts tighter controls on the $54.3 billion in local government debt. It also mandates that referenda be held during general elections to benefit from higher voter turnout while enhancing transparency on the tax implications of such questions.
The law also looks to ensure that Hoosiers are well-informed about changes that affect their financial responsibilities. A "Property Tax Transparency Portal" is to be created, enabling taxpayers to compare their current tax bill against proposed tax rate adjustments. This move is a nod toward transparency in government proceedings and an effort to involve citizens more directly in the civic dialogue.
This suite of changes marks a significant shift in Indiana's approach to dealing with property taxes, with the legislative session having to wrap up their business by tomorrow as per the timeline provided by Indiana House Republicans.
