STATEHOUSE (Feb. 17, 2026) – State Rep. Ben Smaltz (R-Auburn) recently supported an effort to strengthen property tax relief for Indiana’s veterans, specifically those who have sustained total disabilities in service to the nation.
Smaltz said the proposed provision would increase tax benefits for veterans who are totally disabled by raising the property tax deduction to 100% of the assessed value of their real property, replacing the current $14,000 deduction. The bill would also transition certain existing veteran property tax deductions into property tax liability credits beginning with taxes imposed for the 2026 assessment year.
"Home should be a place of security, not financial strain for Hoosier veterans," Smaltz said. "This legislation strengthens property tax relief for those with service-connected disabilities, updating long-standing benefits to better reflect today's realities while honoring those who served."
Smaltz said it also expands and updates property tax relief for other veterans and surviving spouses by establishing new credits and restoring long-standing deductions. In addition to allowing veterans with a 100% disability rating to deduct 100% of their home’s assessed value with no cap, the bill creates new property tax credits to replace existing deductions, including a $250 credit for partially disabled veterans with a disability rating of at least 10% who are age 62 or older, and a $350 credit for veterans who served during wartime. This measure also restores the World War I surviving spouse deduction at $18,720, which is currently claimed by 18 remaining survivors statewide.
Under the proposed language, veterans who previously claimed a property tax deduction would receive a credit against their local property tax liability. The changes would be imposed for the 2026 assessment date.
Smaltz estimates the measure would result in an additional tax relief of about $23.2 million overall for disabled veterans beginning with taxes payable in 2027.
This provision was amended into House Bill 1210 which recently passed out of the House and now moves to the Senate for further consideration.
To learn more about the bill and follow session, visit iga.in.gov.
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State Rep. Ben Smaltz (R-Auburn) represents House District 52,
which includes all of DeKalb County, and portions of Noble and Steuben counties.
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