Indiana House passes amended Senate Bill 1 to deliver robust property tax relief and reform to Hoosiers

STATEHOUSE (April 10, 2025) – The Indiana House of Representatives today passed an amended Senate Bill 1, advancing a robust package of property tax relief for Hoosier homeowners and long-term reforms.

Under Senate Bill 1, through a combination of credits and reforms, Hoosier homeowners will save $1.3 billion 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," said 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 SB 1 includes:

• A 10% property tax credit up to $300 on all homestead property tax bills beginning in 2026.
• Additional, stackable credits of $150 for fixed-income seniors and up to $400 for disabled veterans ($150 and $250 stackable credits for those who qualify).
• Decreases the total local income tax rate, reducing the cap from 3.75% to 2.9%, a reduction of $1.9 billion in local income tax revenue capacity.
• Puts stronger controls in place to rein in the $54.3 billion in local government debt.
• Requires referenda to be held during general elections to align with higher voter turnout and increase transparency of referenda questions to better note the tax impact.
• Creates a Property Tax Transparency Portal to allow taxpayers to compare their current tax bill with proposed tax rate changes.
• Exempts more small businesses from paying business personal property tax.
• Saves farmers roughly $125 million over three years by increasing the capitalization/interest rate to 9%, reducing assessed value.

"Under this bill, nearly all Hoosiers are going to see property tax relief," said State Rep. 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 final action. Visit iga.in.gov to follow the legislative session, which must conclude by April 29.

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House Speaker Todd Huston (R-Fishers) represents
House District 37, which includes a portion of Hamilton County.
To download high-resolution photos of House Republican members click here.

State Rep. Jeff Thompson (R-Lizton) represents House District 28,
which includes portions of Boone, Hendricks and Montgomery counties.
Click here to download a high-resolution photo.