Updated: October 21, 2026 · By Mark Dietel, Broker/Owner, Mark Dietel Realty · 6-minute read
Quick answer: File State Form 5473 once with your county auditor, online through indy.gov in Marion County or with the Johnson County Auditor in Franklin, unless your closing already filed it. The DLGF's example: an application completed by January 15, 2026 applied to the 2025-pay-2026 bill. Below we show the pay-2026 and pay-2027 amounts and when to ask the auditor.
What we analyzed: Indiana Department of Local Government Finance (DLGF) deduction guidance and its May 27, 2026 memo, Indiana Code 6-1.1-12, State Form 5473, and the Indiana REALTORS Housing Hub Johnson County report for August 2026.
Key takeaways
- The homestead deduction is filed once with the county auditor for your main residence. You do not refile every year.
- The DLGF's example: an application completed on or before January 15, 2026 applies to the 2025-pay-2026 tax bill.
- Under Indiana Code 6-1.1-12-44, the sales disclosure form from your closing can serve as the application. Verify it on your parcel record anyway.
- Deduction amounts change each year under Senate Enrolled Act 1 (2025). The table shows pay 2026 and pay 2027, the years a fall 2026 closing is most likely to touch.
What do you actually get for filing?
Filing makes your home an Indiana homestead, your main residence, in the county's records. That status brings a standard deduction, a supplemental deduction on the value that remains, and a 1% cap on the bill instead of 2%. On 2026 bills it also brings the SEA 1 homestead credit. On a mid-priced home, homestead status means roughly half the value is taxed instead of all of it, which is why we treat this form as a must-do on every purchase.
What do you actually get for filing?
| Homestead benefit | Taxes payable 2026 | Taxes payable 2027 |
|---|---|---|
| Standard deduction | $48,000 (2025 assessment date) | $40,000 (2026 assessment date) |
| Supplemental deduction | 40% of the remaining value | 46% of the remaining value |
| Cap on the bill | 1% of gross assessed value | 1% of gross assessed value |
| SEA 1 homestead credit | 10% of the bill, up to $300 | confirm with your county auditor |
The dollar effect on one home is laid out in our guide to how Indiana property taxes work for buyers. Buying now and not sure what is on file for a home you are considering? Call or text Mark Dietel Realty at (317) 426-9911 and we will help you read the county record.
Step 1: Check whether your closing already filed it
Indiana Code 6-1.1-12-44 lets the sales disclosure form (State Form 46021) signed at closing serve as the homestead application in many ordinary purchases. Not every filing lands, so step one is looking up your parcel. That is the real choice here: rely on the closing filing if the record shows it, or file Form 5473 yourself if it does not. When in doubt, filing yourself costs a few minutes; missing a year costs a full year of higher bills.
Find your property record on your county's site; both Marion and Johnson County offer a parcel search. In the deductions section you want the homestead standard and supplemental deductions listed under your name, not the seller's. If they are there, you are done. If not, file.
Step 2: File with your county auditor
The application is State Form 5473, Claim for Homestead Property Tax Standard / Supplemental Deduction. It asks for the parcel, the date you began living in the home, and identifying details for each owner that the state uses for its homestead verification database.
Step 2: File with your county auditor
| County | Where to file | What to have ready |
|---|---|---|
| Marion County | Online via indy.gov (search "homestead deduction"; processed by the Marion County Auditor) | Parcel number or address, closing date, ID details for each owner |
| Johnson County | Johnson County Auditor, courthouse in Franklin, in person or by mail; check the auditor's page for online options | Same, plus your recorded deed or closing packet if asked |
Monroe, Morgan, Hendricks, Hancock and Shelby Counties use the same state form; only the auditor's office differs.
Step 3: Mind the January 15 deadline
The DLGF's guidance gives the timing: an application completed on or before January 15, 2026 shows up on the 2025-pay-2026 bill. Miss the date and the deduction generally waits for the next bill year, which means a year of higher payments.
Our advice to buyers: file in the same season you close. For an October closing in Greenwood, that means before the holidays. If you closed in late December, file in the first days of January and keep the confirmation.
Step 4: Verify it took
A few weeks after filing, check the parcel record again and confirm the homestead deductions show under your name. Each spring, the TS-1 comparison statement with your bill should list the deduction lines. Reapply only when the property is sold or the title changes, such as a divorce, a trust transfer, or adding a spouse to the deed.
If a deduction you filed never appears, contact the auditor with your confirmation. Here is what happens when homestead status quietly goes missing.
What does this look like in Central Indiana?
A hypothetical: you close on a Greenwood home priced near Johnson County's August 2026 median sale price of $330,000 (Indiana REALTORS Housing Data Hub) on October 9, 2026. You sign the sales disclosure form at the table. In November you look up the parcel, see no homestead under your name, and file State Form 5473 with the Johnson County Auditor that week, well before January 15, 2027. The seller owned the home on the 2026 assessment date, so the auditor is the one who confirms which bill your filing first reaches. Keep the confirmation, ask that question in writing, and check the TS-1 statement on each bill that follows.
When this doesn't apply
This filing is only for your main residence. Rentals, flips, second homes and most land-contract arrangements do not qualify, and claiming a homestead you are not entitled to carries penalties because Indiana cross-checks its homestead database. Owners over 65, veterans with service-connected disabilities and some other groups have added deductions with their own forms and limits, which this article does not cover. If your purchase involves a trust, an estate or an LLC, ask the auditor how to file first.
What to do next
If you bought recently, spend five minutes on your parcel record today. If you are buying now, put the homestead filing on your closing checklist next to the utilities. Questions about a specific property? Call or text Mark Dietel Realty at (317) 426-9911. We have offices in Southside Indianapolis, Greenwood and Bloomington.
Read next: How Do Property Taxes Work When You Buy a House in Indiana? · Why Is My Indiana Property Tax Bill Higher Than the Seller's? · What Are the Steps to Buying a House in Indiana?
Frequently asked questions
Do both spouses have to sign the homestead application?
The form collects identifying information for each person claiming the homestead, including both spouses on a jointly owned home. Gather each owner's details before you start so the filing goes through on the first try. One filing covers the household, and the auditor will tell you if anything is missing.
Do I have to refile every year?
No. Once granted, the homestead deduction stays until the property is sold or the title changes. Your job each year is to confirm it still appears on the bill, especially after a refinance, a deed correction, or any change in how the home is titled.
I moved from another Indiana house I still own. Can I keep both homesteads?
No. The homestead belongs to your main residence only. When you move, the deduction on the old house should end and a new application covers the new one. If you keep the old house as a rental, expect it to move to the 2% category.
What if I closed in December? Which bill does my filing reach?
Per the DLGF's example, an application completed on or before January 15 reaches the bill due that same year. File right after closing, keep the confirmation, and ask the county auditor which bill your filing first lands on, since it depends on the timing of the sale.
This is general information, not legal, tax or appraisal advice. Confirm your situation with the Marion or Johnson County Assessor, a CPA or an attorney. Deduction amounts change each year under SEA 1-2025.
Mark Dietel Realty — offices in Indianapolis (Southside), Greenwood and Bloomington, Indiana.
Sources
- DLGF, Deductions and Credits (January 15 example and reapplication guidance): https://www.in.gov/dlgf/deductions-and-credits/
- DLGF, Legislation Affecting Deductions, Credits, and Exemptions (May 27, 2026): https://www.in.gov/dlgf/files/2026-memos/260527-Cockerill-Memo-Legislation-Affecting-Deductions,-Credits,-and-Exemptions.pdf
- Purdue Extension, Property Tax Reform: Phasing Out, Phasing In (SEA 1 homestead credit): https://extension.purdue.edu/news/2025/09/property-tax-reform-phasing-out-phasing-in.html
- Indiana Code 6-1.1-12-37, 6-1.1-12-37.5, 6-1.1-12-44: https://iga.in.gov/laws/2025/ic/titles/6
- State Form 5473, Claim for Homestead Property Tax Standard / Supplemental Deduction (from county auditors and in.gov)
- Indiana REALTORS Housing Hub, Johnson County, August 2026: https://data.indianarealtors.com/viewreport/2/all/18081/
