Deduction Information

On March 21, 2022, Govenor 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.

$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

When you file, you will need your closing packet or a copy of your recorded mortgage. Anyone who has refinanced or made a deed change since the last filing must refile for the deduction. 

File the Mortgage Deduction Form (Online) when:

  • You purchase a home and you have a Mortgage with a balance of $3000+
  • You refinanced your loan
  • You change your deed or change the ownership name reflected on title