Indiana House Republicans announce Senate Bill 1 amendment to deliver property tax relief and long-term reform

STATEHOUSE (April 4, 2025) – Indiana House Republicans today released their amendment to Senate Bill 1 to deliver property tax relief and long-term reform.

Through a combination of credits and reforms, Hoosier homeowners will save $1.1 billion in property taxes over the next three years. Under the amendment, a majority of Hoosiers will pay less property tax in 2026 than 2025 and nearly all Hoosiers will see relief.

"Many Hoosiers have been hit hard by rising property taxes and today we're announcing more than $1 billion in property tax relief and reforms," said House Speaker Todd Huston (R-Fishers). "Our amendment delivers meaningful property tax relief to homeowners and reforms the property tax system long-term to increase transparency and predictability for Hoosiers. We're continuing to work closely with our partners in the Senate and the Governor's office to deliver relief for Hoosiers."

Providing Property Tax Relief to Hoosier Homeowners and Farmers

• Includes a 7.5% property tax credit up to $200 on all homestead property tax bills beginning in 2026.
• Provides additional credits of $150 for fixed-income seniors and up to $250 for disabled veterans.
• Phases in increased property tax deduction for homeowners (2/3 deduction by 2031), and a new property tax deduction for non-homestead residential properties and farmers (1/3 deduction by 2031).
• Lowers farmland base assessed values by increasing the capitalization/interest rate to 9%, saving farmers more than $55 million in 2026 and more than $140 million over three years.

In addition to relief, the amendment to SB 1 reforms the property tax system to protect taxpayers, rein in local government debt and reduce reliance on property taxes.

Reforming the Property Tax System to Protect Taxpayers

• Puts stronger controls in place to rein in the $54.3 billion in local government debt.
• Reduces local government reliance on property taxes and restores accountability in local government spending.
• 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.

"Under this amendment, 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. "We're able to do this while moving to a better system that enables communities to invest in their priorities in a much more transparent and fair way for taxpayers."

The amendment to Senate Bill 1 will be heard by the House Ways and Means Committee at 10:30 a.m. Monday, April 7.

More information on Senate Bill 1 is available here. 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.