A sweeping property tax reform bill has cleared the Indiana Senate and is now headed to Governor Mike Braun’s desk for signature. The plan promises relief for the majority of Hoosier homeowners, with estimates showing two-thirds will see lower tax bills in 2026 compared to 2025. Starting next year, property owners will receive a 10% credit on their tax bills, capped at $300. Seniors aged 65 and older will get an additional $150 credit, while disabled veterans will benefit from a $250 increase. While the reforms aim to ease the burden on taxpayers, they could result in a $1.8 billion loss in revenue for local governments over the next three years. To offset the impact, Republican lawmakers are proposing new local income tax options. Democratic Senator Greg Taylor criticized the plan, warning it may force cuts to essential services like road maintenance and public access to government resources. Despite the concerns, Governor Braun has expressed support for the measure, calling it a “historic” move toward a more equitable and transparent tax system.
