Questions & Answers

What Indiana property taxes may be deducted?

You may be able to take a deduction of up to $2,500 ($1,250 if Married Filing Separately) of the Indiana property taxes (residential real estate taxes) paid on your principal place of residence. Your principal place of residence is the place where you have your true, fixed home and where you intend to return after being absent.

Note: Property tax paid for summer homes or vacation homes is not deductible.

You cannot claim this deduction for property tax paid in 2021 if you are claiming the Lake County residential income tax credit. Enter both and we will give you whichever one is best.

Enter the amount of Indiana property tax paid. If you lived in more than one residence during the year, enter the combined amount of Indiana property tax paid on all principal residences.

Example. Jamie and Ella each owned their own home; they married in 2021. They sold both of their homes during the year and began renting. They are eligible to claim a property tax deduction on the combined property taxes paid on both homes if they are filing a joint return (limited to $2,500).

If you are Married Filing Separately, enter half of the amount of property taxes paid by you and your spouse. Each spouse will receive half of the deduction (limited to $1,250 each).

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