Congratulations on your new home in Indiana! Whether you just closed in Avon, Brownsburg, Plainfield, or anywhere else in Hendricks County, property taxes are likely one of the first things on your mind — and one of the least explained parts of the homebuying process.

The good news: Indiana has some of the most homeowner-friendly property tax laws in the Midwest, and 2025 brought sweeping new reforms that benefit you even further. The not-so-good news: if you don’t take the right steps soon after closing, you could be leaving hundreds of dollars on the table every single year.

This guide breaks it all down in plain English — no tax jargon, no confusing government documents. Just what you need to know to keep more money in your pocket.

How Indiana Property Taxes Work

Property taxes in Indiana are calculated based on the assessed value of your home — the value the county assessor places on it. But here’s the key thing new homeowners often miss: you don’t pay taxes on 100% of that assessed value. Indiana law allows you to reduce the taxable portion significantly through deductions and credits.

The basic formula looks like this:

Assessed Value − Deductions (Homestead, Mortgage, etc.) = Net Assessed Value (NAV) × Local Tax Rate = Gross Tax Bill − Tax Credits (Homestead Credit, Circuit Breaker, etc.) = What You Actually Pay

Indiana property taxes are billed twice a year — in May and November — with each installment covering half of your annual tax. Your first bill as a new homeowner will likely arrive the spring after you close.

The Homestead Deduction: The Most Important Thing You Need to Do

The Homestead Deduction is the single biggest property tax benefit available to Indiana homeowners, and it applies to your primary residence only. If you’ve recently purchased a home in Hendricks County and it’s where you live, you almost certainly qualify — but you must apply for it.

How the Homestead Deduction Works in 2026

The Homestead Deduction has two components that work together:

Component	What It Does in 2026
Standard Deduction	Reduces your assessed value by up to $40,000. (This is being phased down over time — more on that below.)
Supplemental Deduction	Applied automatically after the standard deduction. No separate application needed. Reduces taxable value further based on a percentage of your home’s assessed value.
New: 10% Homestead Credit	A brand-new credit (starting 2026) equal to 10% of your tax bill, capped at $300. Applied automatically — no extra filing required.

A Real Example

Let’s say your Hendricks County home is assessed at $340,000 (close to the current median). Here’s how the deductions work in your favor:

• Start: $340,000 assessed value
• Minus $40,000 standard homestead deduction = $300,000
• Minus supplemental deduction (applied automatically) = further reduction
• Apply local tax rate to arrive at gross tax bill
• Subtract new 10% homestead credit (up to $300)

💡 Important: The homestead deduction does NOT apply automatically. You must file Form HC10 with your county auditor’s office — typically by December 31 — to receive the benefit on the following year’s tax bill.

2025 Property Tax Reform: What Changed and Why It Matters

Indiana’s General Assembly passed major property tax reform in 2025 (Senate Enrolled Act 1), described by experts as the most significant property tax overhaul since 2008. Here’s what new homeowners need to know:

1. The standard homestead deduction is gradually being reduced from $48,000 (2025) to $40,000 (2026) and will phase to zero by 2031.
2. To offset this, the supplemental homestead deduction is being increased each year — reaching 66.7% of assessed value by 2031. Effectively, only one-third of your home’s market value will be used to calculate your tax.
3. A brand-new 10% homestead tax credit (capped at $300) was introduced beginning with 2026 tax bills.

Bottom line: even though the standard deduction is shrinking, the supplemental deduction and new credit are designed to keep homeowners’ tax bills manageable. For most homeowners, the net effect is roughly neutral or better over time.

Other Deductions You May Qualify For

Beyond the Homestead Deduction, Indiana offers several other property tax benefits:

Mortgage Deduction

If you have a mortgage on your home, you can reduce your assessed value by up to $3,000. This stacks on top of your homestead deduction.

Over-65 Circuit Breaker Credit

If you or your spouse are 65 or older, you may qualify for additional property tax relief based on income thresholds. For 2026, income limits of $60,000 (single) and $70,000 (married) apply. Unlike before, there is no longer an assessed value cap disqualifying higher-value homes.

Veteran Deductions

Veterans with service-connected disabilities may qualify for deductions ranging from 50% to 100% of their home’s assessed value, depending on disability rating. Contact your county auditor’s office for details.

Indiana’s Property Tax Cap (Circuit Breaker)

Indiana has a constitutional cap on property taxes that protects homeowners from runaway tax bills. Your property tax bill cannot exceed 1% of your home’s assessed value for your primary residence. This is known as the “circuit breaker” and it applies automatically — no application needed.

Example: If your home is assessed at $340,000, your property tax bill cannot exceed $3,400 per year under the circuit breaker. If the calculated tax exceeds that amount, it’s automatically reduced.

How to Apply: Step-by-Step for Hendricks County

For new homeowners in Brownsburg, Avon, Plainfield, Danville, or anywhere in Hendricks County:

• Locate your property’s tax ID number (on your closing documents or your county assessor’s website)
• Download or pick up Form HC10 (Homestead Deduction Application) from the Hendricks County Auditor’s Office
• Complete the form — you’ll need your Social Security number, driver’s license number, and the same for your spouse if applicable
• Submit to the Hendricks County Auditor before December 31 to receive the benefit on the following year’s tax bill
• Once filed, you do NOT need to reapply every year — the deduction stays in place unless you sell, change the title, or change the property’s use

You can often file online through the Hendricks County Auditor’s website or in person at the county offices in Danville.

📞 Hendricks County Auditor’s Office: Located in Danville, Indiana. Visit the county website at co.hendricks.in.us for current hours, contact info, and online filing options.

Frequently Asked Questions

When will I get my first property tax bill?

Indiana property taxes are billed in arrears — meaning you pay for the prior year’s taxes. Your first bill will likely arrive the spring after you close. Don’t be surprised if it looks different from what you expected, especially if the homestead deduction hasn’t been applied yet.

What if I missed the deadline to apply?

If you miss the December 31 filing deadline, you won’t receive the benefit for that tax year — but you can still apply for future years. File as soon as possible to avoid missing another cycle.

Can I get the homestead deduction on a rental property?

No. The Homestead Deduction applies to your primary residence only. If you rent out your home or own an investment property, it does not qualify.

How do I know if my deduction was applied?

Check your property tax bill when it arrives or log into the Hendricks County online property records portal to verify your deductions are showing on your account.

My tax bill seems too high. What can I do?

You have the right to appeal your home’s assessed value if you believe it’s inaccurate. File a Form 130 (Taxpayer’s Notice to Initiate an Appeal) with the county assessor. The deadline is typically June 15 for the prior year’s assessment. A local real estate agent or tax professional can help you evaluate whether an appeal makes sense.

Quick Reference: Key Dates & Numbers

Item	Detail
Homestead deduction deadline	December 31 (for following year’s bill)
Standard homestead deduction (2026)	Up to $40,000 off assessed value
New 10% homestead credit (2026)	10% of tax bill, max $300
Property tax cap (primary residence)	1% of assessed value
Mortgage deduction	Up to $3,000 off assessed value
Property tax billing schedule	May and November (semi-annual)
Assessment appeal deadline	Typically June 15
Hendricks County Auditor	Danville, IN — co.hendricks.in.us

Have Questions About Your Hendricks County Property Taxes?   Understanding your property tax benefits is just one part of making smart homeownership decisions. Whether you’re a new buyer trying to understand your costs, a seller wondering how your taxes compare to market value, or simply looking for local guidance — we’re here to help.   Contact us today for a free consultation about Hendricks County real estate.

Disclaimer: This blog post is for informational purposes only and does not constitute legal or tax advice. Property tax laws change frequently. Always consult your county auditor or a qualified tax professional for guidance specific to your situation.