Property Tax Benefits
Basic eligibility criteria for the Disabled Veteran Tax Deduction
Section 13. For a deduction of $24,960 from the assessed value of the property the veteran:
1. Must have served in the military during any of its wars.
WWll: December 7,1941 - December 31,1946
KOREA: June 27 ,1 950- January 31 , 1 955
VIETNAM: August 5, 1964 -May 7, 1975
GULF WAR: August 2, 1 990- to a future date to be set by law or Presidential Proclamation
2. Received an HONORABLE discharge.
3. Have a Service-Connected Disability Rating of at least 10% (evidenced by an award of compensation by the United States Department of Veterans Affairs).
Note: No property value limit is place for the deduction.
Section 14. For a deduction of $14,000. from the assessed value of the property the veteran:
- Must have served in the military for at least 90 days
- Must have received and HONORABLE discharge
- Either
- Has a total disability (100% or Individual is Unemployable as rated by the United States Veterans Affairs OR,
- Is at least sixty-two (62) years of age AND have a service-connected disability rating of at least 10%. (evidenced by an award of compensation by the United States Department of Veterans Affairs).
Property value limit for this deduction is $240,000 (effective 01-01-2024)
A veteran who owns a vehicle and is entitled to a deduction under lC 6-1 "1-12 sections 13, 14 or 16 and has any remaining deduction from the assessed valuation to which the person is entitled, applicable to property taxes payable in the year in which the excise tax is imposed after allowance of the deduction on property owned by the person, shall reduce the annual excise tax in the amount of two dollars ($2) on each one hundred ($100) of taxable value or major portion thereof.
lf a veteran qualifies for any of the disabled property tax deductions but does not own property which a tax deduction can be applied under lC 6-1 .1-12 sections 13 & 14 then the amount of credit that can be applied is equal to the lesser of the following:
(1) The amount of excise tax liability for the individual's vehicle under section 5 of lC 6-6-5
(2) Seventy dollars ($70.00)
(3) The maximum number of motor vehicles is two (2)
(4) The credit allowed by this section must be claimed on a form prescribed by the bureau. An individual claiming the credit must attach to the form an affidavit from the county auditor stating that the claimant does not own property to which a property tax deduction may be applied under lC 6-1 .1-12 sections 13,14, or 16.
Sections 13 and 14. To be eligible for both Sections ($38,960).
- Served during a Wartime period
- Honorable discharge
- Totally disabled OR at least 10% AND over age 62 years old
- Assessed property values does not exceed the maximum limit of $240,000 effective 01-01-2024 (only applies to the Section 14 amount of $14,000)
Note:
If two veterans own or are buying a property and BOTH are eligible for deduction the all deduction apply toward the property from BOTH veterans.
The surviving spouse of a veteran is also entitled to either or both deductions under Sections 13 and 14 if the veteran was eligible at the time of death, regardless of whether the property was owned by the veteran or the surviving spouse before the veteran’s death and regardless if the surviving spouse remarries after the veteran’s death.
The surviving spouse is authorized the deduction under Section 14 ($14,000) if the veteran was killed in action, died while serving on active duty, of died while performing inactive duty training (Reserve or National Guard) and the property does not exceed the assed value cap, currently $240,000.
Section 14.5 No Cost Property Conveyance.
For a deduction of property tax for property conveyed to the veteran at no cost to the veteran by an organization that is exempt from income taxation under the federal Internal Revenue Code:
lf this deduction is used the veteran cannot claim deductions under section 13 or 14 of lC 6 1.1-12
The veteran;
- Must have served in the military for at least 90 days.
- Received an H0N0RABLE discharge.
- Receive a service-connected disability rating of at least 50%
Deductions under this section are determined as follows under Section 14.5;
lf the veteran is Totally disabled (100%) then the deduction is equal to I00% of the assessed
value,
lf the veteran is 90% Service-connected disabled then the deduction is equal to 90% of the assessed value,
lf the veteran is 80% Service-connected disabled then the deduction is equal to 80% of the assessed value,
lf the veteran is 70% Service-Connected disabled then the deduction is equal to 70% of the assessed value,
lf the veteran is 60% Service-Connected disabled then the deduction is equal to 60% of the assessed value.
lf the veteran is 50% Service-connected disabled then the deduction is equal to 50% of the assessed value.
Source: https://www.in. gov/dva/2383.htm