The McCormick-Goodin Commonsense Property Tax Relief Plan will provide property tax relief by increasing tax credits for senior citizens, veterans and low income Hoosier families in 2025 and 2026. The plan also calls for increasing tax exemptions for renters and capping yearly property tax increases at ten percent.

 

The McCormick-Goodin Commonsense Property Tax Relief Plan has six mechanisms to provide significant relief for Hoosiers:

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• 40% Increase in the Homeowner Property Tax Deduction: Increase the maximum homeowner property tax deduction from $2,500 to $3,500. The Indiana Legislative Services Agency last year estimated this would be an $8.8 million savings to eligible homeowners starting 2025.

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• Expand Deductions for Senior Citizens: Expand property tax deductions by increasing the income threshold for senior citizens over 65 years making up to $40,000 for individuals and $50,000 for households with joint returns and assessed value of real property up to $300,000. Currently, the income threshold for senior citizens is $30,000 for individuals and $40,000 for households with joint returns and assessed value of real property up to $200,000. In 2022, the Indiana Legislative Services Agency estimated this would cost approximately $14.7 to $21.8 million per year. ​

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• Expand Deduction for Disabled Veterans: Increases the cap on assessed value from $240,000 to $350,000 to expand qualifications for disabled veterans (total disability or at least age 62 with at least 10% disability). The Indiana Legislative Services Agency last year estimated this would cost approximately $6.8 million per year.​

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• 150% Increase in Exemptions on Personal Income: Increase the amount of exemptions on state and local income taxes from $1,000 to $2,500. The Indiana Legislative Services Agency last year estimated this would result in approximately $500 million in savings to taxpayers, including the elderly and blind ($333 million of savings in state income taxes and $173 million of savings in local income taxes). ​

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• Cap Property Tax Bill Increases at 10%: Individual homestead owners will receive a refundable tax credit to offset property tax increases if their property tax bill grows more than 10% compared to the prior year (excluding schools’ passed referendums). This policy will effectively cap the growth of property tax bills at no more than 10% annually. In 2022, the Indiana Legislative Services Agency estimated this would result in approximately $23.5 million of savings to individual homestead owners starting Calendar Year 2024, and $7 million in each subsequent year.​

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• 33% Increase in Renters Tax Deduction: Increase the renter’s income tax deduction from $3,000 per year to $4,000 per year. The Indiana Legislative Services Agency last year estimated this would cost approximately $28 million per year.