IN.gov - Skip Navigation

Note: This message is displayed if (1) your browser is not standards-compliant or (2) you have you disabled CSS. Read our Policies for more information.

Amber Alert
Amber Alert - TEST
  • gibill
  • helpline_widget
  • vetorg_widget
  • VeteransServiceOffice_widget
  • welcomehome_widget

Indiana Department of Veterans' Affairs

DVA > Resources > Veteran Benefits > Indiana Benefits > Property Tax Deductions Property Tax Deductions

DISABLED VETERAN TAX DEDUCTIONS
Below are the Indiana codes for the Disabled Veteran Tax Deductions.  If you have all the paperwork required (DD214 AND a pension certificate or an award of compensation issued by the United States Department of Veterans Affairs  you may take it directly to your county auditors office for eligibility verification and  processing.

 If you do not have a DD214 and a pension certificate or an award of compensation issued by the United States Department of Veterans Affairs then you can fill out the State Form 51186 and take or send it to the Indiana Department of Veterans Affairs for verification of eligibility.

 You should see your County Veteran Service Officer  if you need assistance decifering the Indiana Code and finding out which deduction(s) you may qualify for.

It is possible that a veteran could be eligible for one or both the deductions ($24,960 Sec. 13 and or $12,480 sec.14) . 

Required Documents required at the County Auditor's Office
DD214(s) (MUST BE AN HONORABLE DISCHARGE)
Award of compensation or pension certificate issued by the United States Department of Veterans Affairs 
OR
Certificate of Eligibility (State Form 51186) issued by the Indiana Department of Veterans Affairs

If an otherwise eligible veteran owns no real property then a deduction towards vehicle excise tax may be applied (see IC 6.6.5.5.2)

IC 6-6-5-5.2
Credit for certain veterans who are not eligible for a property tax deduction
    
Sec. 5.2. (a) This section applies to the registration year beginning after December 31, 2013.
    (b) Subject to subsection (d), an individual may claim a credit against the tax imposed by this chapter upon a vehicle owned by the individual if the individual is eligible for the credit under any of the following:
        (1) The individual meets all the following requirements:
            (A) The individual served in the military or naval forces of the United States during any of its wars.
            (B) The individual received an honorable discharge.
            (C) The individual has a disability with a service connected disability of ten percent (10%) or more.
            (D) The individual's disability is evidenced by:
                (i) a pension certificate, an award of compensation, or a disability compensation check issued by the United States Department of Veterans Affairs; or
                (ii) a certificate of eligibility issued to the individual by the Indiana department of veterans' affairs after the Indiana department of veterans' affairs has determined that the individual's disability qualifies the individual to receive a credit under this section.
            (E) The individual does not own property to which a property tax deduction may be applied under IC 6-1.1-12-13.
        (2) The individual meets all the following requirements:
            (A) The individual served in the military or naval forces of the United States for at least ninety (90) days.
            (B) The individual received an honorable discharge.
            (C) The individual either:
                (i) has a total disability; or
                (ii) is at least sixty-two (62) years of age and has a disability of at least ten percent (10%).
            (D) The individual's disability is evidenced by:
                (i) a pension certificate or an award of compensation issued by the United States Department of Veterans Affairs; or
                (ii) a certificate of eligibility issued to the individual by the Indiana Department of Veterans' Affairs after the Indiana Department of Veterans' Affairs has determined that the individual's disability qualifies the individual to receive a credit under this section.
            (E) The individual does not own property to which a property tax deduction may be applied under IC 6-1.1-12-14.
        (3) The individual meets both of the following requirements:
            (A) The individual is the surviving spouse of any of the following:
                (i) An individual who would have been eligible for a credit under this section if the individual had been alive in 2013 and this section had been in effect in 2013.
                (ii) An individual who received a credit under this section 

in the previous calendar year.
                (iii) A World War I veteran.
            (B) The individual does not own property to which a property tax deduction may be applied under IC 6-1.1-12-13, IC 6-1.1-12-14, or IC 6-1.1-12-16.
    (c) The amount of the credit that may be claimed under this section is equal to the lesser of the following:
        (1) The amount of the excise tax liability for the individual's vehicle as determined under section 5 of this chapter.
        (2) Seventy dollars ($70).
    (d) The maximum number of motor vehicles for which an individual may claim a credit under this section is two (2).
    (e) An individual may not claim a credit under both:
        (1) this section; and
        (2) section 5(b) of this chapter
    (f) The credit allowed by this section must be claimed on a form prescribed by the bureau. An individual claiming the credit must attach to the form an affidavit from the county auditor stating that the claimant does not own property to which a property tax deduction may be applied under IC 6-1.1-12-13, IC 6-1.1-12-14, or IC 6-1.1-12-16. As added by P.L.293-2013(ts), SEC.19.
 

Indiana Code 6-1.1-12-13
Deduction for Veteran with partial disability; limitations; surviving spouse; contract purchaser

Sec. 13. (a) Except as provided in section 40.5 of this chapter, an individual may have twenty four thousand nine hundred sixty dollars ($24,960) deducted from the assessed value of the taxible tangible property that the individual owns, or real property, a mobilr home not assessed as real property, or a manufactured home not assessed as real property that the individual is buying under contract that provides that the individual is to pay property taxes on the real property, mobile home, or manufactured home, if the contract or a memorandum of the contract is recorded in the county recorder's office and if:
                  (1) the individual served in the militray or naval forces of the United States during any of it's wars;
                  (2) the individual received an Honorable Discharge;
                  (3) the individal has a disability with a service connected disability of ten percent (10%) or more;
                  (4) the individual's disability is evidenced by:
                     (A) a pension certificate, an award of compensation, or a disability compensation check issued by the United States Department of Veterans Affiars; or
                     (B) a certificate of eligibility issued to the individual by the Indiana Department of Veterans Affairs after the Indiana Department of Veterans Affairs has determined that     the individual's disability qualifies the individual to receive a deduction under this section;
                  (5) and the individual
                     (A) owns the real property, mobile home, or manufactured home; or
                     (B) is buying the real property, mobile home, or manufactured home under contract; on the date the statement required by section 15 of this chapter is filed.
               (b) The Surviving spouse of of an individual may receive the deduction provided by this section if the individual satisfied the requirements of subsection (a)(1) through (a)(4) at the time of death and the surviving spouse satisfies the requirement of subsection (a)(5) at the time the deduction statement is filed. The surviving spouse is entitled to the deduction regardless of whether the property for which the deductionis claimed was owned by the deceased veteran or the surviving spouse before the deceased veteran's death.
               (c) One who receives the deduction provided by this section may not receive the deduction provided by section 16 of this chapter.  However, the individual may receive any other property tax deduction which the individual is entitiled to by law.
               (d) An individual who has sod real property, a mobile home not assessed as real property, or a manufactured home not assessed as real property to another person under a contract that provides that the contract buyer is to pay the property taxes on the real property, mobile home or manufactured home may not claim the deduction provided under this section against that real property , mobile home, or manfactured home.

Indiana Code 6-1.1-12-14
Deduction for totally disabled veteran or veteran over age 62 and partially disabled; surviving spouse; contract purchaser

   Sec 14. (a) Except as provided in subsection  (c) and except as provided in section 40.5 of this chapter, and individual may have the sum of twelve thousand four hundred eighty dollars ($12,480) deducted for the assessed value of the tangible property that the individual wns (or the real property, mobile homoe not assessed as real property, or manufactured home not assessed as real property that the individual is buying under a contract that provides that the individual is to pay property taxes on the real property , mobile home, or manufatured home if the contract ot a memorandum of the contract is recorded in the county recorder's office) if:
                    (1) the individual served in the military or naval forces of the United States for at least ninety (90) days;
                    (2) the individual received an Honorable Discharge;
                    (3) the individual either:
                        (A) has a total disability; or
                        (B) is at least sixty two (62) years old and has a disability of at least ten percent (10%);
                    (4) the individual's disability is evidenced by:
                        (A) a pension certificate or an award of compensation issued by the United States Department of Veterans' Affairs; or
                        (B) a certificate of eligibility issued to the individual by the Indiana Department of Veterans' Affairs after the Indiana Department of Veterans' Affairs has determined that the individuals disability qualifies  the individual to receive a deduction under this section; and
                    (5) the individual;
                        (A) owns the real property, mobile home, or manufactured home; or
                        (B) is buying the real property, mobile home or manufactured home under contract; on the date the statement required by section 15 of this chapter is filed.
                (b) Execpt as provided in subsection (c), the surviving spose of an individual may receive the deduction provided by this section if the individual satisfied the requirement of subsection (a)(1) trhough(a)(4) at the time of death and the surviving spouse satisfies the rquirement of subsection (a)(5) at the time the deduction statement is filed.  The surviving spouse is entitiled to the deduction regardless of whether the property for which the deduction is claimed was owned by the deceased veteran or the surviving spouse before the deceased veteran's death.
                (c) No one is entitiled to the deduction provided by this section if the assessed value of the indiviual's tangible property, as shown by the tax duplicate, exceeds one hundred forty-three thousand one hundred sixty dollars ($143,160).
                (d) An individual who has sold real property, a mobile home not assessed as real property, or a manufactured home not assessed as real property to another person under a contract that provides that the contract buyer is to pay the property taxes on the real property, mobile home, or manufactured home may not claim the deduction provided under this section against that real property, mobile home, or manufactured home.

Referenced Parts to the above code:

Sec. 40.5. Notwithstanding any other provision, the sum of the deductions provided under this chapter to a mobile home that is not assessed as real property or to a manufactured home that is not assessed as real property may not exceed one-half (1/2) of the assessed value of the mobile home or manufactured home.
Claim by veteran; guardianship; contract purchaser
     Sec. 15. (a) Except as provided in section 17.8 of this chapter and subject to section 45 of this chapter, an individual who desires to claim the deduction provided by section 13 or 14 of this chapter must file a statement with the auditor of the county in which the individual resides. With respect to real property, the statement must be filed during the year for which the individual wishes to obtain the deduction. With respect to a mobile home that is not assessed as real property or a manufactured home that is not assessed as real property, the statement must be filed during the twelve (12) months before March 31 of each year for which the individual wishes to obtain the deduction. The statement may be filed in person or by mail. If mailed, the mailing must be postmarked on or before the last day for filing. The statement shall contain a sworn declaration that the individual is entitled to the deduction.
    (b) In addition to the statement, the individual shall submit to the county auditor for the auditor's inspection:
        (1) a pension certificate, an award of compensation, or a disability compensation check issued by the United States Department of Veterans Affairs if the individual claims the deduction provided by section 13 of this chapter;
        (2) a pension certificate or an award of compensation issued by the United States Department of Veterans Affairs if the individual claims the deduction provided by section 14 of this chapter; or
        (3) the appropriate certificate of eligibility issued to the individual by the Indiana Department of Veterans' Affairs if the individual claims the deduction provided by section 13 or 14 of this chapter.
    (c) If the individual claiming the deduction is under guardianship, the guardian shall file the statement required by this section. If a deceased veteran's surviving spouse is claiming the deduction, the surviving spouse shall provide the documentation necessary to establish that at the time of death the deceased veteran satisfied the requirements of section 13(a)(1) through 13(a)(4) of this chapter or section 14(a)(1) through 14(a)(4) of this chapter, whichever applies.
    (d) If the individual claiming a deduction under section 13 or 14 of this chapter is buying real property, a mobile home not assessed as real property, or a manufactured home not assessed as real property under a contract that provides that the individual is to pay property taxes for the real estate, mobile home, or manufactured home, the statement required by this section must contain the record number and page where the contract or memorandum of the contract is recorded.

IC 6-6-5-5
Amount of tax credit against tax
     Sec. 5. (a) The amount of tax imposed by this chapter shall be based upon the classification of the vehicle, as provided in section 4 of this chapter, and the age of the vehicle, in accordance with the schedule set out in subsection (c) or (d).
    (b) A person who owns a vehicle and who is entitled to a property tax deduction under IC 6-1.1-12-13, IC 6-1.1-12-14, IC 6-1.1-12-16, or IC 6-1.1-12-17.4 is entitled to a credit against the annual license excise tax as follows: Any remaining deduction from assessed valuation to which the person is entitled, applicable to property taxes payable in the year in which the excise tax imposed by this chapter is due, after allowance of the deduction on real estate and personal property owned by the person, shall reduce the annual excise tax in the amount of two dollars ($2) on each one hundred dollars ($100) of taxable value or major portion thereof. The county auditor shall, upon request, furnish a certified statement to the person verifying the credit allowable under this section and the statement shall be presented to and retained by the bureau to support the credit.
    (c) After January 1, 1996, the tax schedule is as follows:
    Year of
Manufacture    I     II     III     IV     V
1st    $12     $36     $50     $50     $66
2nd    12     30     50     50     57
3rd    12     27     42     50     50
4th    12     24     33     50     50
5th    12     18     24     48     50
6th    12     12     18     36     50
7th    12     12     12     24     42
8th    12     12     12     18     24
9th    12     12     12     12     12
10th    12     12     12     12     12
and thereafter
    Year of
Manufacture    VI     VII     VIII     IX     X
1st    $84     $103     $123     $150     $172
2nd    74     92     110     134     149
3rd    63     77     93     115     130
4th    52     64     78     98     112
5th    50     52     64     82     96
6th    50     50     50     65     79
7th    49     50     50     52     65
8th    30     40     50     50     53
9th    18     21     34     40     50
10th    12     12     12     12     12
and thereafter
    Year of
Manufacture    XI     XII     XIII     XIV     XV
1st    $207     $250     $300     $350     $406
2nd    179     217     260     304     353
3rd    156     189     225     265     307
4th    135     163     184     228     257
5th    115     139     150     195     210
6th    94     114     121     160     169
7th    78     94     96     132     134
8th    64     65     65     91     91
9th    50     50     50     50     50
10th    21     26     30     36     42
and thereafter
    Year of
Manufacture    XVI     XVII
1st    $469     $532
2nd    407     461
3rd    355     398
4th    306     347
5th    261     296
6th    214     242
7th    177     192
8th    129     129
9th    63     63
10th    49     50
and thereafter.
    (d) Every vehicle shall be taxed as a vehicle in its first year of manufacture throughout the calendar year in which vehicles of that make and model are first offered for sale in Indiana, except that a vehicle of a make and model first offered for sale in Indiana after August 1 of any year shall continue to be taxed as a vehicle in its first year of manufacture until the end of the calendar year following the year in which it is first offered for sale. Thereafter, the vehicle shall be considered to have aged one (1) year as of January 1 of each year.
(Formerly: Acts 1969, c.423, s.5; Acts 1973, P.L.54, SEC.3; Acts 1975, P.L.21, SEC.10.) As amended by Acts 1979, P.L.216, SEC.2; Acts 1980, P.L.38, SEC.22; Acts 1982, P.L.60, SEC.2; P.L.91-1983, SEC.2; P.L.33-1990, SEC.13; P.L.240-1991(ss2), SEC.53; P.L.25-1995, SEC.57; P.L.26-1996, SEC.8; P.L.6-1997, SEC.127.