Indiana has built a strong reputation as one of the most taxpayer-friendly states in the country, with a low cost of living and a competitive business climate that continues to attract investment and growth. That strength is reflected in Indiana ranking 10th in the nation for tax competitiveness in 2025 and ninth overall in Chief Executive's annual ‘Best & Worst States for Business’ 2026 survey. That commitment continued during the 2025 legislative session as we advanced more than $1 billion in tax relief measures aimed at helping Indiana families, homeowners and businesses.
One of the biggest priorities we worked to address was a growing concern over rising property taxes. Across Indiana, many homeowners have felt the pressure from higher property tax bills, especially families and seniors on fixed incomes. Throughout the past two legislative sessions, the General Assembly worked to provide meaningful relief for taxpayers while ensuring local communities can continue meeting critical needs and investing in the future.
That resulted in the passage of Senate Enrolled Act 1, a comprehensive property tax reform law designed to provide immediate savings and long-term reforms for Hoosier taxpayers. This law is expected to save homeowners more than $1.3 billion over three years while helping make Indiana's property tax system more transparent and accountable.
Beginning this year, Indiana's homeowners received a 10% property tax credit up to $300 on homestead property tax bills. This law also includes an additional $150 credit for qualifying low-income seniors. It also phases in a two-thirds property tax deduction for all homeowners leading to continued and long-term relief.
At the same time, the legislation includes reforms aimed at strengthening accountability at the local level. Senate Enrolled Act 1 places new guardrails on local government finance and encourages more responsible spending practices. It also reduces the total amount of local income taxes local governments can collect, helping ensure taxpayers have a stronger voice when additional revenue is requested.
Another important component of the law is increased transparency. Property tax referendums will now appear on general election ballots, when voter participation is typically highest, giving more Hoosiers an opportunity to weigh in on major tax decisions.
Property taxes impact families, homeowners, farmers and small businesses in every corner of our state. Senate Enrolled Act 1 represents an important step to provide relief and create a more taxpayer-focused system for the future.
Supporting taxpayers also means recognizing the sacrifices made by the men and women who served our country. During the 2026 legislative session, we passed House Enrolled Act 1210, which expands property tax relief for Hoosier veterans with service-connected disabilities by strengthening and increasing existing deductions and credits. These changes are designed to deliver more meaningful and consistent property tax reductions for those who incurred disabilities during their military service.
I remain committed to working with fellow lawmakers, local leaders and taxpayers to continue reducing the tax burden on hardworking Hoosiers and ensuring our communities remain strong places to live, work and raise a family.
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State Rep. Tony Isa (R-Angola) represents House District 51,
which includes all of LaGrange County and a portion of Steuben County.
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