Marshall County Auditor Angie Birchmeier is urging veterans and surviving spouses to pay close attention to significant changes to their property tax deductions and credits, approved by the Indiana General Assembly and set to take effect with the 2026 payable 2027 property tax cycle.
The Auditor's office has been working closely with the state's tax software provider, the Department of Local Government Finance (DLGF), the State Board of Accounts (SBOA), and the Association of Indiana Counties (AIC) to ensure full compliance with the new statutes.
1. Several Assessed Value (AV) Deductions are being replaced by direct tax credits (HEA 1210)
House Enrolled Act 1210 shifts several traditional Assessed Value deductions to direct credits applied against a taxpayer's actual tax bill.
- General Disabled Veteran Benefit: The previous $24,960 assessed value deduction will expire and be replaced by a $350 direct tax credit.
- Totally Disabled Veterans / Veterans Age 62+ with 10% or More Disability: The previous $14,000 assessed value deduction will expire and be replaced by a $250 direct tax credit.
Important note: Eligibility criteria for these new credits have been modified by the state. Some individuals who previously qualified may no longer be eligible under the new rules.
2. 100% Service-Connected Disability — expanded deduction
Veterans with a 100% service-connected disability will see a significantly enhanced benefit under the newly amended Indiana Code:
- Eligible veterans will now receive a 100% deduction of their property's assessed value.
- The previous assessed value cap of $240,000 has been completely removed.
To qualify, the property must be owned by the applicant (or purchased under a land contract) and must have served as the applicant's principal place of residence for at least one year prior to the assessment date. Surviving spouses of eligible veterans may continue to receive this deduction, provided the residency and ownership requirements are met, and the spouse has not remarried.
3. Vehicle Excise Tax credit update
The vehicle excise tax provisions have also been amended. Any unused portion of a veteran's property tax deduction may now be applied toward their vehicle excise tax, at a conversion rate of $2 for every $100 of unused taxable value — the same rate as before. Veterans who do not own property will continue to receive their excise tax credit as in prior years, as will surviving spouses who have not remarried.
All eligible veterans are asked to bring the following documentation to the Marshall County Auditor's Office between July 1, and December 31, 2026:
- A Pension Certificate, Award of Compensation from the VA, or Certificate of Eligibility issued by the Indiana Department of Veterans Affairs (IDVA).
- Surviving spouses must provide documentation establishing that the deceased veteran met eligibility requirements at the time of death.
The Marshall County Building is open to the public Monday through Friday, 8:00 AM to 4:00 PM. Residents with questions are encouraged to call the Auditor's Office at 574-935-8555.
"With so many changes, we would like to encourage anyone who has questions to please reach out to our office," Auditor Birchmeier said.
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