Property Tax Exemptions

Did you buy a home or refinance your current mortgage this year?  If so, remember to file your property tax exemptions by the end of the year!  If exemptions aren’t filed, your taxes (and monthly house payment if you escrow property taxes) could go up substantially.

During closing, there are a lot of papers to sign and a lot of information flying around.  One of the most important papers is a bright yellow form that was given to you explaining the benefits of property tax exemptions.

 

Exemptions at a glance

There are two main property tax exemptions that most homeowners will qualify for; Homestead & Mortgage.  The homestead exemption simply means you are living in the home as your primary residence and it is not a rental house, vacation house, etc.  This is by far the most valuable deduction and can save you up to 40% on your property tax bill.  The homestead deduction is now filed for you at closing, but it never hurts to verify with the county auditor that it is in effect.

The second common deduction is the mortgage exemption.  As the name implies, this deduction is available to homeowners who have a mortgage attached to their property.  This form is NOT filed for you at closing and must be filed by you, before December 31st in order for the deduction to be in effect for the following year’s property taxes.

Exemptions do not need to be re-filed each year.  Once they’re in place, you’re all set.  However, if refinance your home, you MUST re-file your mortgage exemption.  

 

How to file

A couple of counties allow you to file your exemptions online.  Here are a their links:

Hendricks County – Mortgage Exemption

Marion County – Mortgage Exemption


To file in person, visit the following county offices:

Boone County Auditor
201 Courthouse Square
Lebanon, IN 46052
765.482.2940

Hamilton County Auditor
33 N. 9th St, STE L21
Noblesville, IN 46060
317.776.8401

Hendricks County Auditor
355 S. Washington STE 202
Danville, IN 46122
317.745.9300

Johnson County Auditor
86 W. Court St.
Franklin, IN 46131
317.346.4310

Marion County Auditor
200 E. Washington St. STE 801
Indianapolis, IN 46204
317.327.3001

What to bring when filing in person 

When filing your mortgage exemption in person, be sure to bring your drivers’ license and have an approximate amount of the balance owed on your loan.  Also make sure that it has been at least 30-days since closing.  Your deed will need to be recorded and a good rule of thumb is to wait until after you make your first payment at minimum. If you closed in the month of December, its a good idea to go to the auditors office in person as close to the end of the year as you can and file. Either way, be sure to get and keep the receipt! This is your only proof that you have filed these exemptions.

 

Additional exemptions

In addition to the homestead and mortgage exemptions, here are a few more deductions you may qualify for:

  • Over 65 – If you are over 65 and have a combined adjusted gross income of $25,000 or less
  • Disabled – If you are blind or disabled and have an individual taxable gross income of $17,000 or less
  • Disabled Veteran – You have served in U.S. Military and are disabled
  • Green exemptions- There are additional deductions for homes utilizing solar, wind, hydroelectric and geothermal  energy systems
  • More – For the full list, take a look at the benefits of property tax exemptions form

 

Again, if you’re not sure about exemptions, call your county auditor’s office or give us a ring and we’ll be happy to take a look for you.  Remember, time is of the essence for property tax filings!

 

 

About Rob Newkirk

Rob is a Central Indiana native and has been a licensed Realtor since 2003. He is a real estate broker, property manager and the owner of Newkirk Realty. Get more from Rob on Twitter and Google+.

Comments

  1. Thanks for this, I had been searching online for 20 minutes looking how to file my mortgage deduction!

  2. Thanks for your site! I’ve just subscribed to it.

  3. Jacqueline Hislop says:

    My daughter, Sonya brought her first home in Indianapolis IN 46256 in June. She was told that she could file the non-exempt form on line. Sonya is nurse and cannot come in person due to her hours at work. Please tell me how Sonya can file the form on line or what other thing must be done.

    Thank you for your time. Happy New Year. Jacqueline Hislop

    • Hello Jacqueline,

      Since your daughter is in Marion County, she can indeed file online. She can go to this link: Marion County Mortgage Deduction Online Application
      and fill out the form, then hit Submit on the bottom. Only the fields with the red * are necessary.
      From looking at her purchase in the MLS, here are some of the pieces of information they will need:

      Applicant Name: Sonya’s full name, as it appears on the the mortgage
      Key Number/Legal Description: (I will email directly to you)
      Assessed value: (Will email)
      Mortgage / Contract indebtedness: This is the amount of her loan. This will be listed on line 202 of the Settlement Statement / HUD-1 she signed at closing. Close counts, so if you aren’t sure you can just put the purchase price.
      Is the applicant the sole legal owner: Yes (judging from her tax record)
      Is the property in question: Real Property (i.e. House, condo, etc.)
      Name of mortgagee: Her mortgage co’s name (i.e. Bank of America, Wells Fargo, etc.)
      Address of mortgagee: Above banks address (not necessary, but helpful if you have it handy)
      Does Applicant own property in any other county in Indiana?: Must be “no” to receive all exemptions
      Full resident address: full home address
      Parcel #: (I will email this as well)
      Email: important for receipt of filing.

      That should be it. Make sure she keeps the emailed receipt after she submits this form. This will be the only proof she she has filed. And make sure she does this this week!

      Feel free to contact us with any questions at all. I’ll send you an email now with the items listed above.

      Happy New Year!
      -Rob Newkirk

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