On April 10, 2025, the Indiana House of Representatives passed an amended version of Senate Bill 1, which aims to provide significant property tax relief for Hoosiers. The bill proposes a $1.3 billion reduction in property taxes over the next three years.
“Today, the House passed robust property tax relief for Hoosiers. Two-thirds of Hoosier homeowners will see a lower bill in 2026 than they did in 2025, and nearly all will see relief,” stated Indiana House Speaker Todd Huston (R-Fishers). “We look forward to getting this bill across the finish line and real savings into the pocketbooks of Hoosiers.”
The amended bill outlines several measures including:
– A 10% property tax credit for homestead properties, up to $300 starting in 2026.
– Additional credits for eligible fixed-income seniors and disabled veterans.
– A reduction in the cap of the local income tax rate from 3.75% to 2.9%.
– New measures to control local government debt and enhance voter engagement and transparency in referenda.
– Implementation of a Property Tax Transparency Portal to facilitate tax comparisons.
– An exemption for more small businesses from paying business personal property tax.
– An economic relief of approximately $125 million for farmers over three years.
“Under this bill, nearly all Hoosiers are going to see property tax relief,” said State Representative Jeff Thompson (R-Lizton), chair of the House Ways and Means Committee. “This legislation is a massive win for Hoosier homeowners and taxpayers, in the near term and in the future.”
Senate Bill 1 now returns to the Senate for further evaluation. For further updates on the legislative session, which concludes by April 29, stakeholders can visit iga.in.gov.
