Indiana Gov. Mike Braun speaks during rally for property tax reform at Indiana Statehouse
Indiana Gov. Mike Braun speaks during a rally for property tax reform Monday, March 17, 2025, at the Indiana Statehouse.
Property tax relief has become one of the top debates of the 2025 legislative session with hours of testimony from concerned local officials, a veto threat from Gov. Mike Braun and a rally of hundreds at the Statehouse in March chanting “Where’s my money?”
Three different property tax plans from Republicans have been presented at the Statehouse this year and on Friday, House Republicans added a fourth. Indianapolis state Rep. Greg Porter, the top Democrat on the Committee on Ways and Means, has also shared a property tax plan.
Ways and Means, which handles financial proposals in the House, is expected to hold a vote on the House Republican plan Monday morning after the bill has remained idle for nearly a month.
Criticism has abounded for each of the first three Republican proposals at the Statehouse over whether they make too deep of cuts to a key revenue source for local governments and school corporations, or if the plans provide enough relief for property owners that have dealt with major bill increases due to skyrocketing assessments.
House Republicans say their plan will save Hoosiers $1.1 billion over the next three years through both credits and long term reforms. The House plan is also expected to include a phase down of the tax on business equipment and the contents of Senate Bill 518, the controversial school funding bill that would require public schools to share property tax revenues with charter schools.
The full picture of what the House’s plan does is not entirely clear, as the text of the amendment and a fiscal analysis of the proposal were not released Friday. Also not clear yet, is whether Braun would sign off on the House proposal. House Speaker Todd Huston said that conversations are still ongoing with the governor’s administration and lawmakers in the Senate. The two chambers will have to come to a consensus on what property tax relief should look like before the adjourn later this month.
Missing from the property tax relief debate, though, has been specific information about what each plan might save the average Hoosier homeowner starting in 2026. Economists and fiscal analysts that spoke with IndyStar said it’s hard to calculate that without more specific data, and that precise calculations would depend on many factors including where someone lives, what their local tax rates are and what their property values have been.
Huston also emphasized Friday the challenge of providing exact savings for an average homeowner. But Huston said the House’s plan would result in “a majority” of Hoosiers paying less property taxes in 2026 than they will this year, potentially a few hundreds of dollars in savings.
“It really depends on where you live and the units of government, where you have referendums and those types of things,” Huston said Friday.
House Republican plan
Who it originated from: House Republicans
What it does: Per a summary from House Republicans, the plan would provide relief through property tax credits up to $200 for all homeowners and additional credits for fixed-income seniors and disabled veterans. The plan would also seek to reform the current property tax system through reducing how much local entities rely on property taxes, although specific details were not clear Friday. A full version of the plan could be available as early as Monday.
Potential savings in 2026: Unclear as of April 4. The full version of the bill and a fiscal analysis are expected to be shared publicly on Monday. In a statement, Indianapolis state Rep. Greg Porter, the top Democrat on Ways and Means, said the reported $1.1 billion in savings over the next three years might save the average homeowner about $192 per year over the next three years.
The issue: Democrats already objected to portions of the proposal, including the lack of a first-time homebuyer’s credit. Porter, in his statement, objected to rolling SB 518 on school property tax dollar sharing into SB 1.
Braun’s plan
Who it originated from: Gov. Mike Braun
What it does: Braun’s plan, which was reflected in the initial version of SB 1, seeks to put homeowner taxes back to levels before 2022. It also focused on capping property tax increases at 2-3% and raises the deductions homeowners can take on their taxes based on a percentage of their assessed value.
Potential savings in 2026 per homestead: With an estimated nearly $1.3 billion in homestead savings in the first year and nearly 2 million homesteads in Indiana, an average homeowner might save around $650. (That calculation does not factor in any local specifics about a homeowner’s assessed value or local taxes, which could impact a bill.)
The issue: In just the first year of Braun’s plan, local governments and school corporations would see more than $1 billion in cuts. School districts, specifically, would take the biggest hit with $536 million cut in the first year alone. Those numbers, and concerns from local leaders, were factors that led Senate Republicans to change the bill in February.
Senate Republicans plan
Who it originated from: Senate Republicans
What it does: The Senate passed this bill in February. It aims to slow future property tax increases through limiting how much local governments can raise their tax rates. It gives credits to Hoosiers that have purchased a home for the first time and lets more homeowners take advantage of tax credits and deductions for disabled veterans and seniors. The bill also allows counties to create programs for taxpayers to potentially defer up to $500 of their property taxes each year.
Potential savings in 2026 per homestead: With a reported nearly $91.4 million in homestead savings in the first year and nearly 2 million homesteads in Indiana, an average homeowner might save between $45 and $50. (That calculation does not factor in any local specifics about a homeowner’s assessed value or local taxes, which could impact a bill. Plus, under this plan savings would be directed more toward disabled veterans and seniors rather than all Hoosiers.)
The issue: Braun and other critics of this plan said it did not provide enough broad relief to Hoosier taxpayers. Braun has specifically threatened to veto this bill. Unlike Braun’s plan, the Senate’s bill focuses on providing more targeted relief to groups like senior citizens, veterans and first-time homebuyers.
Contact IndyStar state government and politics reporter Brittany Carloni at brittany.carloni@indystar.com. Follow her on Twitter/X @CarloniBrittany.
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