news release
WARSAW – Kosciuszko County Auditor Alyssa Schumacher wants to update taxpayers on some changes to deductions, exemptions, and credits that were recently approved by the Indiana General Assembly.
This change affects property taxes for 2026, which will be paid in 2025, and adjustments will be made over the next five years. Given the numerous changes introduced by the state legislature, auditors have decided to provide a brief overview of the deductions, credits, and exemptions that will take effect. If you have any questions, don’t hesitate to reach out to the Audit Office.
The Kosciusko County Auditor’s Office is collaborating with tax software providers, the Office of Local Government Finance, the State Board of Accountancy, and the Indiana Association of Counties to ensure adherence to the new regulations.
Changes
The 65+ deduction has been updated to a new version. The maximum credit stands at $150, which applies to the property tax owner’s overall tax liability rather than lowering the assessed value of the property. Those already benefiting from this deduction don’t need to take any action, as the Comptroller’s Office will automatically transition current recipients to the new deduction.
For individuals aged 65 and older, the Circuit Breaker Credit has been modified. The income thresholds are now set at a federally adjusted gross income of $60,000 for single filers and $70,000 for married couples, and the previous assessment cap on the credit has been discarded. Unlike the 65+ credit, this income threshold is adjusted every year based on the cost of living increase that affects Social Security benefits. So, if you’re a single filer with an AGI not exceeding $60,000, you’re eligible for the credit and should contact your auditor’s office. If you’re married and your AGI is under $70,000, you’d qualify as well.
The Visual Impairment Credit has transitioned into a $125 Blind Credit, which, similarly, applies to the property tax owner’s tax liability, not as a reduction of assessed property value. A new Visually Impaired Credit has been established without any income restrictions. Those who currently receive the Blindly Disabled Credit will automatically switch to the new version, as the income limits have been removed.
The VA deduction will stay the same for 2025 and will be disbursed in 2026. There was some confusion regarding this deduction, due to multiple bills being passed through the Indiana General Assembly. Ultimately, the bill signed by Gov. Mike Brown remained effective.
