Why Your Property Tax Bill Looks Different This Year

Your fall property tax payment is due Tuesday, November 10. If you’ve looked at your bill this year and wondered why it changed, you’re not alone. Indiana passed a major property tax law in 2025, called Senate Enrolled Act 1, and this is the first year it shows up on homeowners’ bills.

Here’s what changed, what’s coming, and three things worth checking before you pay.

What’s new on this year’s bill

Most homeowners now get a new credit. It takes 10% off your homestead property tax bill, up to $300. If your bill was $2,000, the credit is $200. If it was $3,000 or more, it’s $300.

You don’t have to apply for it. The county applies it automatically to any home that already has a homestead deduction. That’s the catch, and it’s why the first item on the checklist below matters.

What changes next year

This year is the easy part. Starting with next year’s bills, the state begins shifting how your home’s value is taxed.

The standard homestead deduction, which takes $48,000 off your home’s assessed value today, starts shrinking. It drops to $40,000 next year and keeps stepping down until it’s gone by 2031. At the same time, the supplemental deduction grows each year until it covers about two-thirds of your home’s remaining value.

For most homes in Fishers, Carmel, Noblesville and Westfield, those two changes roughly balance out. Owners of lower-priced homes are more likely to see their bills go up over time, because the flat $48,000 deduction was doing more of the work for them.

Your local tax rates matter too. Schools, cities and libraries are adjusting their budgets to the new law, so your bill depends on what happens locally, not just the state formula.

Three things to check before you pay

1. Make sure your homestead deduction is on your bill. This is the one that costs people real money. If you bought your home in the last year or two, check that the homestead deduction is listed. Without it, you lose the deduction and the new credit, and your bill can be hundreds or even thousands of dollars higher. You can file the homestead claim online through the Hamilton County Auditor. You don’t need to refile every year, only if the deed changes, you marry, or you change how the home is used.

2. If you’re 65 or older, look at the new senior credit. The old over-65 deduction is now a credit of up to $150 a year, for homeowners 65 and older with income of $60,000 or less ($70,000 for married couples). If you already had the over-65 deduction, Hamilton County switched you over automatically. If you didn’t have it before but qualify now, you have to apply. The deadline for next year’s bill is January 15, 2027. The Auditor’s Real Property team can help at (317) 770-4412.

3. Look at your assessed value. Your bill starts with what the county thinks your home is worth. If that number looks high compared with what similar homes nearby have actually sold for, you can appeal it. In Indiana you don’t need an appraisal to appeal. Recent sales of comparable homes count as evidence. The deadline is usually June 15, so there’s time, but it’s easier to start now while the bill is in front of you.

If you pay through your mortgage

Most homeowners with a mortgage pay their taxes through escrow, so your lender pays the November bill for you. Still look at the bill. If the amount changed, your monthly mortgage payment may change too when your lender reviews your escrow account next year. Better to know now than be surprised.

Think your assessment is high?

I can help with that one. I’ll pull what comparable homes near you actually sold for, so you can see whether your assessed value lines up. If it doesn’t, you’ll have the numbers you need to start an appeal. Ask me for a comparison. No cost, no pressure.

Sandy Siddons, REALTOR®/Broker, F.C. Tucker Company

This post is general information, not tax or legal advice. Deduction and credit rules come from Indiana Senate Enrolled Act 1 (2025) and guidance from the Indiana Department of Local Government Finance. Check your own bill and confirm details with the Hamilton County Auditor or Treasurer, or a tax professional.