Indiana Mortgage Deduction

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Indiana Home

Indiana Mortgage Deduction

How Indiana Mortgage Deduction Works
The Indiana Mortgage Deduction is one of the deductions and credits that are available to lower property taxes in Indiana. This deduction allows Indiana residents who own real property or a mobile/manufactured home in the state to deduct up to $3,000 from the assessed value of the property. In order to be eligible, the property owner must owe a mortgage debt or, in the case of a mobile home, a debt on a recorded contract providing that the buyer is to pay property taxes. There is no income requirement to apply.

NOTE: Indiana has other property tax relief programs that applicants may be eligible for whether or not they are eligible to receive the mortgage deduction. More information about these deductions is available by contacting your county auditor.

How to Apply
The Benefit Bank will help applicants fill out the Indiana Mortgage Deduction form. In order to complete the application, you will need to know information about the property, including the taxing district and the mortgage or contract debt still owed (as of March 1 and as of the date of application). Information about the property can be obtained from the county auditor or county recorder of the county where your property is located. The completed application may then be filed with either the county auditor or county recorder in the county where the property is situated.

In addition to the application form, a contract buyer of a mobile/manufactured home who is applying for the deduction must submit a copy of the recorded contract or recorded memorandum of the contract for the particular property.

Application Deadline
The application for a mortgage deduction on real property must be completed and dated during the calendar year for which the deduction is sought (on or before December 31). The application must be filed before January 5 of the following calendar year. An application for a deduction from contract indebtedness on a mobile/manufactured home must be filed during the 12 months before March 31 of the year the deduction is sought.

Taxpayers do not need to reapply for deductions annually. Reapplication should only occur if the property is sold, the title is changed or, in the case of the mortgage deduction, if the home is refinanced.