Deduction Information

On March 21, 2022, Governor Eric J. Holcomb signed into law House Enrolled Act 1260-2022 (HEA 1260).  Section 12 of HEA 1260 repeals the mortgage deduction in its entirety, effective January 1, 2023.  This means that beginning January 1, 2023, individuals will no longer be able to apply for this property tax deduction, and county auditors will no longer apply the mortgage deduction to property tax bills beginning with the 2023 pay 2024 cycle.

For 2022 pay 2023 cycle, $3,000 is deducted from the assessed value of the property. Property owners must maintain a balance of $3,000 or more at all times on their recorded mortgage or line of credit (if your principle loan is paid in full) to be eligible to receive the benefit of this deduction.

Filing for the Deduction

Effective January 1, 2023, you can no longer file for this deduction.