If you own a home in Indiana, you are probably familiar with Indiana property taxes and more importantly, property tax deductions.
Each year, the property tax assessor for your county will assign your property an assessed value. According to the State of Indiana website:
the assessed value is determined using a mass appraisal technique in combination with trending based on sales data.
The State of Indiana property tax department allows deductions to be filed which will lower your gross assessed value. The most popular of these deductions is the Homestead Deduction and Mortgage Deduction.
Homestead Deduction – if you live in the property as your personal residence. You are only allowed to claim one Homestead Deduction per person and this deduction will reduce your tax liability by $45,000.
Mortgage Deduction – If you have a mortgage on your property, you area allowed to claim this deduction which will reduce your tax liability by $3,000. You can claim this deduction on multiple properties as long as each property carries a mortgage. Read more about allowable deductions HERE
All Deductions MUST BE FILED by December 31st of the taxing year. Here are the three main reasons that you should be filing or re-filing your exemptions:
1. IF you purchased a home this year – DO NOT rely on the prior owners deductions, because those will fall off as soon as the assessors office gets wind that they have sold the property. While, it is likely that the title company has filed your Homestead Deduction, it is YOUR responsibility to file your Mortgage Deduction. You know the old saying, “it’s better to be safe than sorry”, visit your county assessors office to ensure that ALL of your deductions are filed in time!
2. IF you refinanced your home this year – Each time you obtain a new mortgage, you MUST re-file your mortgage exemption.
3. IF you made any changes to your deed – This includes quit claiming a party on or off of the deed, putting the property into a trust, or changing how title is held i.e. joint tenants, single, tenancy in the entirety, you MUST re-file the Homestead Deduction.
IMPORTANT – you will receive a receipt from filing the deductions, it is VERY important that you keep this receipt. In the event that your deductions fall off, this paper trail could save you $ thousands $!
Here are some important links depending on which county you live: