State Reps. Kendell Culp and Jack Jordan have supported the passage of Senate Enrolled Act 1, a new law intended to provide property tax relief and reform for homeowners in Indiana. The legislation is expected to save Hoosier homeowners $1.3 billion in property taxes over the next three years, with two-thirds of homeowners seeing lower bills in 2026 compared to 2025.
Culp emphasized the impact of the legislation, stating, “With this legislation, we’re saving Hoosiers real money, tackling local debt and increasing transparency.” He noted the benefits specifically extended to farmers, pledging to continue advocating for additional savings for the agricultural community.
The key aspects of SEA 1 include a 10% property tax credit up to $300 on all homestead property tax bills beginning in 2026 and additional relief for fixed-income seniors and disabled veterans. The law will also phase in a two-thirds property tax deduction for homesteads and a one-third deduction for other residential properties and farmers. Further, it exempts more small businesses from paying business personal property tax and reduces the assessed value for farmland, resulting in savings of approximately $125 million over three years.
The act also introduces long-term reforms aimed at reducing local government debt and improving transparency. These include reducing the total amount of local income taxes that can be collected by $1.9 billion, imposing controls on the $54.3 billion in local government debt, and requiring referenda to coincide with general elections for increased transparency regarding their tax impacts. Additionally, a Property Tax Transparency Portal will be created to allow taxpayers to view current and proposed tax rates.
“Senate Enrolled Act 1 is about putting Hoosier families first and providing them with the relief they need today while creating a more stable and secure future for taxpayers across the state,” said Jordan. He highlighted the long-term approach to tax relief and the goal of strengthening the financial foundation for communities.
The legislative session for Indiana must be concluded by April 29.
