State Rep. J.D. Prescott announced the enactment of Senate Enrolled Act 1, a law providing significant property tax relief and reforms for homeowners in Indiana. Prescott, a Republican from Union City, supported SEA 1, which is projected to save Hoosier homeowners $1.3 billion in property taxes over the next three years. The law was signed on April 17, 2025.
Homeowners in Indiana can expect property tax reductions beginning in 2026. According to Prescott, “This legislation will deliver much needed tax relief for the majority of homeowners across the state.” He emphasized the responsible nature of these cuts, noting that they do not transfer the tax burden to agricultural sectors.
Key provisions of SEA 1 include a 10% property tax credit up to $300 for homestead properties, additional stackable credits for fixed-income seniors and disabled veterans, and exemptions for small businesses from the business personal property tax. Farmers are expected to save approximately $125 million over three years.
The act also proposes long-term reforms such as decreasing the maximum local income tax rate from 3.75% to 2.9%, imposing stronger controls on local government debt, and requiring referenda during general elections. Additionally, it introduces a Property Tax Transparency Portal for taxpayers to compare current and proposed tax changes.
For more details on the legislative session, visit iga.in.gov.
