Auditor - Deductions

401 East Main Street
Richmond, IN 47374
Located on the east end of the west wing on the second floor of the Wayne County Annex Building
Open Monday 8:30am - 5:00pm
Tuesday through Friday 8:30am - 4:30pm

Auditor: Mark Hoelscher
Phone: (765) 973-9317
E-Mail: mhoelscher@waynecounty.in.gov


DEDUCTIONS AND REQUIREMENTS

The following is provided as general information, which may be of use to Wayne County residents. It is the responsibility of the taxpayer to inquire and file for any exemptions or deductions from assessed values.


Homestead Standard Deduction

Retroactively effective January 1,2025, SEA 1 Section 44 amends Ind. Code 6-1.1-12.37 by phasing down the Homestead Standard deduction amount over five (5) years by providing that the deduction amount for the specified years is as follows:

  • For assessment dates before January 1, 2025-the lesser of 60% of the assessed value of the real property, mobile home not assessed as real property, or manufactured home not assessed as real property or $48,000
  • for the 2025 assessment date $48,000
  • for the 2026 assessment date $40,000
  • for the 2027 assessment date $30,000
  • for the 2028 assessment date $20,000
  • for the 2029 assessment date $10,000
  • for the 2030 assessment date and each assessment date thereafter, $0

Requirements for Deduction:

  1. You must own or be buying under contract.
  2. You must live on the property of the Year for which you file, and it must be your principal place of residence. No other homestead can be claimed at the same time.
  3. Contracts must be recorded by the Wayne County Recorder’s Office
  4. You must submit the last five of your SSN and DLN and the state it is issued for both you and your spouse regardless of name being on deed.

    5. Can be combined with any other deduction.


Supplemental Homestead deduction

Retroactively effective January 1, 2025, SEA 1 Section 45 amends Ind. Code 6-1.1-12.37.5 by adding a new subsection, which phases in an increase in the Supplemental Homestead deduction over five years. The amount of the Supplemental Homestead deduction will be the assessed value as reduced by the Homestead Standard Deduction for the particular tax year multiplied by:

  • For assessment dates before January 1, 2025-the lesser of 60% of the assessed value of the real property, mobile home not assessed as real property, or manufactured home not assessed as real property or $48,000
  • 40% for the taxes due and payable in 2026.
  • 46% for the taxes due and payable in 2027
  • 52% for the taxes due and payable in 2028
  • 57% for the taxes due and payable in 2029
  • 62% for the taxes due and payable in 2030
  • 66.7% for taxes due and payable in 2031 and each year thereafter

The amount of the Supplemental Homestead deduction may not exceed the amount equal to 75% of the gross assessed value of the property.


Deduction for 2% Circuit Breaker Credit Properties

Section 52 of SEA 1 adds Ind. Code 6-1.1-12.47 as a new section of code, retroactively effective January 1, 2025. This code applies to January 1,2025 assessment date and to future assessment dates.

A taxpayer is entitled to this deduction from the assessed value of the taxpayer’s eligible property after the application of any other deductions that apply under this article equal to:

  • 6% of the taxpayers’ assessed value for assessments made in 2025 for property taxes first due and payable in 2026.
  • 12% of the taxpayers assessed value for assessments made in 2026 for property taxes first due and payable in 2027.
  • 19% of the taxpayers’ assessed value for assessments made in 2027 for property taxes first due and payable in 2028.
  • 25% of the taxpayers’ assessed value for assessments made in 2028 for property taxes first due and payable in 2029.
  • 30% of the taxpayers’ assessed value for assessments made in 2029 for property taxes first due and payable in 2030.
  • 33.4% of the taxpayers’ assessed value for assessments made in 2030 for property taxes first due and payable in 2031, and for the assessments made in each taxable year thereafter.

    • This deduction is applied to “eligible properties” that are defined as residential non-homestead properties, long term care property and agricultural land that are subject to the 2% cap.

    A taxpayer is not required to file an application to qualify for the deduction to be established by this section.


$3,000 Mortgage Deduction

Effective January 1, 2023, individuals will no longer be able to apply for this property tax deduction, and county auditors will no longer be able to apply the mortgage deduction to property tax bills beginning with the 2023 Pay 2024 cycle due to the House Enrolled Act 1260-2022 (“HEA 1260”), Section 12 of HEA 1260 that was signed by Governor Eric J. Holcomb on March 21,2022. Instead, the General Assembly has added $3,000 to the homestead deduction, effective for assessment dates after December 31,2022. The homestead deduction amount for 2023 Pay 2024 will be the lesser of.


Over 65 Credit ($150 credit)

On April 15, 2025, SEA 1 was signed into law by Governor Braun which converts a number of existing property tax deductions into property tax credits, including the Over 65 Deduction.

Section 84 of SEA 1, retroactively effective January 1,2025, adds Ind. Code 6-1.1-51.3-1 provides for a new Over 65 Credit.

  1. Applicant must own or be buying under contract the real property or mobile home or manufactured home not assessed as real property on the date the application is filed
  2. Your adjusted gross income cannot exceed $70,000 for married couple filing jointly or individuals and other individuals who share ownership or adjusted gross income cannot exceed $60,000 for individuals that file single.
  3. If you file a federal or state income tax return, we must have a current copy of your Tax return (1040 form) stating your adjusted gross income.
  4. Surviving, unmarried spouse at least 60 on or before December 31 of the year preceding the year in which the credit is claimed if the deceased was 65 at the time of death may qualify.
  5. We have to consider income from anyone that is living or deeded on the property.
  6. If the property is owned by joint tenants or tenants in common; only one Over 65 credits may be allowed.
  7. If any of the applicants’ joint tenants or tenants in common (other than a spouse) are not at least 65, the credit allowed must be reduced.

    8. Can be combined with any other deduction.

Note: If you are already receiving the Over 65 deduction, there is no action required at this time.


Over 65 Deduction Circuit Breaker

  1. You must be 65 prior to December 31st, of the year in which you file.
  2. Your adjusted gross income cannot exceed $70,000 for married couple filing jointly or individuals and other individuals who share ownership or adjusted gross income cannot exceed $60,000 for individuals that file single
  3. We have to consider income from anyone that is living or deeded on the property.

    4. Can be combined with any other deduction.


Blind/Disabled Credit ($125 Credit)

On April 15, 2025, SEA 1 was signed into law by Governor Braun which converts a number of existing property tax deductions into property tax credits, including the Blind/Disabled Deduction.

Section 84 of SEA 1, retroactively effective January 1,2025, adds Ind. Code 6-1.1-51-3-2 provides for a new Blind/Disabled Credit.

  • You must be legally blind or disabled. We need a doctor’s statement or an award letter from Social Security stating disability or blindness.

If you are already receiving the Blind/Disabled deduction, there is no action required at this time.


Totally Disabled Veteran $14,000 Deduction Code 1

  1. Provide a pension certificate or an award of compensation issued from the U.S. Department of Veterans Affairs; or Certificate of eligibility issued by the Indiana Department of Veterans’ Affairs
  2. Your assessment (total real & personal) cannot exceed $240,000.
  3. Totally Disabled or at least 62 years old and 10% or more disabled.

    4. Can be combined with code #2 Veteran deduction if qualified.


Partially Service-Connected Disabled Veteran $24,960 Deduction Code#2, Code#3

  1. Provide a pension certificate or an award of compensation issued from the U.S. Department of Veterans Affairs; or Certificate of eligibility issued by the Indiana Department of Veterans’ Affairs
  2. At least 10% service-connected disabled.
  3. Unmarried surviving spouses may qualify.
  4. Can be combined with code #1 Veteran deduction, if qualified.

    5. Add Codes #1 and #2 together=$38,960 if you qualify for both veteran deductions.


Credit-Veteran Excise Tax

  • Two different credits for excise tax that may be available to veterans:
  • If, after application of a veteran’s deduction there is any portion of the deduction remaining, the unused portion may be applied first toward any personal property taxes owed and then as a credit toward vehicle excise taxes.
  • The unused portion of the veteran deduction reduces the annual vehicle excise tax in the amount of $2 on each $100 of taxable value or major portion thereof.
  • If a veteran qualifies for this credit, IC 6-6-5-5 states that the county auditor, upon request, will furnish a certified statement to the veteran verifying the credit allowable.

    • If you need assistance in filing for veteran’s deductions, Wayne County operates a Veteran’s Service Office. The Veteran’s Service Office can be reached at (765) 973-9207.


Heritage Barn Deduction

    Hertiage Barn means a barn that on the assessment date

  • Was constructed before 1950.
  • Retains sufficient integrity of design, materials, and construction to clearly identify the building as a barn; and
  • Is a mortise and tenon barn.
    • A mortise and tenon barn are barns built using heavy wooden timbers, joined together with wood-pegged mortise and tenon joinery, which form an exposed structural frame.
  • Barn designed to be used for: housing animals, storing, and maintaining agricultural equipment, or serving an essential or useful purpose related to agricultural activities conducted on the adjacent land.

To claim the Heritage Barn Deduction, the taxpayer must complete Form 55706 and file it with the county auditor’s office.


Geothermal, Solar Energy System or Solar Wind, or Hydroelectric Deduction

SEA 1 eliminates effectively retroactively as of January 1, 2025, the Geothermal, Solar Energy System or Solar Wind, or Hydroelectric deductions. This means that, as of January 1, 2025, individuals will no longer be able to apply for these deductions. These deductions apply only to property taxes imposed for an assessment date before January 1, 2025.


Note:

Deductions applied before the annual deadlines will be applied to next year’s tax bill. The deadline for filing via application on a previously filed deed and Sales disclosure is January 15.

The application deadline for Heritage Barn Deduction (IC 6-1.1-12-26.2) application must be signed by December 31 and filed with county auditor by January 5.

Questions? Please call the Auditor’s Office at (765) 973-9317 and we’ll be glad to help!