Indy Standard

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.