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Real Estate Deductions - Vanderburgh County

Property Deductions

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Property Tax Deductions

Information on Property Tax Deductions/ Credits

Congratulations on your new home and if this is your first purchase in Vanderburgh County, welcome!!! We hope that this information is helpful to you. If the Auditor's Office staff can be of further assistance, please don't hesitate to call our Real Estate Department at 812-435-5293.

Due to legislative changes, the DLGF has made some deductions (such as the homestead) available to file on the Sales Disclosure Form (SDF). These and all other deductions can also be filed in the Auditor's Office.  For more information on Property Tax Deductions, visit the State's website at http://www.in.gov/dlgf/2344.htm. Click here for a printable summary of deductions.

Information listed below includes Property Tax Deductions available for Real Estate and Mobile Homes:

Real Estate
  • Homestead Deduction (Standard and Supplemental)

    Homestead Standard Deduction
    (Up to $45,000 if residential assessed value is 75,000 or over / 60% of residential assessed value if under 75,000)
    Must reside on the property and own by December 31. Exemption amount dependent on assessment.
    Also eligible for a Supplemental Homestead Deduction which is a percentage credit on assessed value after the Standard Homestead Deduction is applied.

    If an individual whose property becomes ineligible for the homestead deduction fails to file a certified statement with the County Auditor notifying the auditor of the ineligibility within sixty (60) days after the date of change, the individual is liable for the amount of the deduction allowed for that real property plus a civil penalty equal to ten percent (10%) of the additional taxes due.

    Use this link for the electronic form from the State of Indiana's site. This form can be mailed or brought into the Auditor's Office located at Room 208 Civic Center Complex, 1 NW Martin Luther King Jr Blvd, Evansville, IN 47708-1880.

    Supplemental Homestead Deduction
    (After deducting the Standard Deduction from the residential assessed valuation, an additional 35% of the residential assessed value up to 600,000 and 25% of the residential assessed value over 600,000 is deducted.)
    An individual who is entitled to a Homestead Standard Deduction is also entitled to receive a Supplemental Homestead Deduction (effective for taxes payable in 2009) which is a percentage credit after the Standard Homestead is applied but before the application of any other deduction, exemption or credit.

    Homestead Standard Deduction, HEA 1004-2011 amending IC 6-1.1-12-37 on Married Couples Maintaining Separate Households.

  • Mortgage Deduction
    ($3,000)
    Must own as of December 31. If you re-finance, you must refile. Mortgage must be recorded before filing for exemption. Here is a link to the IN State website to view the Mortgage Deduction form. This form can be mailed or brought into the Auditor's Office located at Room 208 Civic Center Complex, 1 NW Martin Luther King Jr Blvd, Evansville, IN 47708-1880.

  • Over 65 Deduction
    ($12,480)
    Must be over 65 years of age by December 31 of the year preceding filing for application; was the owner or contract buyer of the property for at least one year prior to claiming the deduction, and total adjusted gross income less than $25,000, when combined with that of his or her spouse and any individual with whom he or she shares ownership; reside on property. Assessed value on residential property not to exceed $182,430.

    Use this link for the electronic form from the State of Indiana's site. This form can be mailed (with copy of prior year's 1040 federal return pages 1 and 2) or brought into the Auditor's Office located at Room 208 Civic Center Complex, 1 NW Martin Luther King Jr Blvd, Evansville, IN 47708-1880.

  • Over 65 Circuit Breaker Credit
    (Prevents eligible senior citizens property tax liability from increasing by more than 2 percent.)
    Must be over 65 years of age by December 31 of the year preceding filing for application; was the owner or contract buyer of the property for at least one year prior to claiming the deduction and reside on property. Total adjusted gross income less than $30,000; when combined with that of his or her spouse and any individual with whom he or she shares ownership, gross income not to exceed $40,000. Assessed value on residential property not to exceed $159,999. For more information and Frequently Asked Questions for the Over 65 Circuit Breaker, click
    here.


  • Blind / Disability Deduction
    ($12,480)
    Taxable gross income under $17,000; proof of blindness or disability; reside on property.
    Use this link for the electronic form from the State of Indiana's site. This form can be mailed (with copy of your proof of disability; either an awards letter of a letter from the Social Security Administration stating you are disabled) or brought into the Auditor's Office located at Room 208 Civic Center Complex, 1 NW Martin Luther King Jr Blvd, Evansville, IN 47708-1880.

  • Veterans Deduction
    ($12,480) Veterans Disability and World War I
    ($18,720) and Spouses Exemptions - vary in
    ($24,960) eligibility; ask about them.

    Use this link for the electronic form from the State of Indiana's site. This form can be mailed (with copy of letter of disability from the local Veterans Administration Office located at 201 NW Fourth St, Room 303 Old Courthouse Building) or brought into the Auditor's Office located at Room 208 Civic Center Complex, 1 NW Martin Luther King Jr Blvd, Evansville, IN 47708-1880.

  • Deductions for Model Homes
    (50 % on assessed value of improvements)
    Real property that consists of a single family residence, single family townhouse, or a single family condominium unit that has never been occupied as a principal residence and is used for display or demonstration to prospective buyers. Owner's regular office space is not considered a model residence (sales office is considered part of the model residence). Model residences located in a TIF area are not eligible for this deduction.

    Note: The Deduction for Model Home Residence (IC 6-1.1-12.6) was effective January 1, 2009. The law stated that the deduction applies only to a model residence that is assessed for the assessment date for 2009 or later. This translates to the deduction being first available for 2009Pay2010. In May of 2009, HB 1071 made the Deduction for Model Residence retroactive to 2008Pay2009.
    Generally, a qualified owner of a Model Residence is entitled to a 50% deduction of the assessed value of a model residence. This does not include the land on which it is located.

    Click here to view the Application for Model Residence Deduction State Form with the instructions and qualifications.

  • Deductions for Residence in Inventory
    The deduction is available to a person that builds a single family residence, a single family townhouse, or a single family condominium unit and holds it for sale in the ordinary course of the person's trade or business. The application must be filed for each assessment date for which the property owner wishes to receive this deduction. This deduction is available to qualifying properties first assessed as partially completed or fully completed structures for the assessment date of March 1, 2012 and later years. For more information click Application for Residence in Inventory Deduction form with instructions and qualifications.

  • Statement for Deduction of Assessed Valuation
    (Attributed to Solar Energy System/ Wind, Geothermal or Hydroelectric Power Device)
    All claims for a deduction filed on a pursuant or hydroelectric system or device must be accompanied by proof of certification of qualification by the Department of Environmental Management pursuant to IC 6-1.1-12-35. See form for filing dates and guidelines. Click here to view the form.

ALL DEDUCTIONS MUST BE SIGNED AND DATED PRIOR TO DECEMBER 31, 2019 AND FILED IN THE VANDERBURGH COUNTY AUDITOR'S OFFICE BY JANUARY 6, 2020 to receive the benefit for the 2019 pay 2020 tax year. To be eligible for the deduction in 2020, persons must be the owner of their primary residence as of December 31, 2019. You will be given a receipt when you file and it is strongly suggested that you keep that receipt for your records.

Taxes are billed on the previous year; so if you are allowed taxes in your closing statement, request the tax bill from the Vanderburgh County Treasurer's office (812-435-5248) to be sent to you.

Mobile Homes (not assessed as real property)
  • Homestead Deduction (Standard and Supplemental)
    (50% of residential assessed value up to $45,000 and additional percentage credit) Standard and Supplemental Homestead Deductions - Must reside in the Mobile Home, own by January 1, 2019 and be listed on the Mobile Home title. Any individual who is entitled to a Standard Homestead deduction is entitled to receive a Supplemental Homestead Deduction. Must be filed by April 1, 2020.
  • Mortgage Deduction
    ($3000) Mortgage -
    Must own and be listed on title as of March 31, if you re-finance, you must refile. Bring proof of Mortgage/ Loan. Here is a link to the IN State website to view the Mortgage Deduction form. This form needs to be filed with the Vanderburgh County Auditor's Office and can be filled out at the office.
  • Over 65 Deduction
    ($12,480) Over 65 -
    Must be over 65 years of age by December 31 of the year preceding filing for application; was the owner or contract buyer of the Mobile Home for at least one year prior to claiming the deduction, and total adjusted gross income less than $25,000, when combined with that of his or her spouse and any individual with whom he or she shares ownership; reside in Mobile Home. Assessed value on residential property not to exceed $182,430. Click here to view form.
  • Over 65 Circuit Breaker Credit
    (Prevents eligible senior citizens property tax liability from increasing by more than 2 percent.)
    Must be over 65 years of age by December 31 of the year preceding filing for application; was the owner or contract buyer of the property for at least one year prior to claiming the deduction and reside on property. Total adjusted gross income less than $30,000; when combined with that of his or her spouse and any individual with whom he or she shares ownership, gross income not to exceed $40,000. Assessed value on residential property not to exceed $159,999. For more information and Frequently Asked Questions for the Over 65 Circuit Breaker, click here.
  • Blind / Disability Deduction
    ($12,480) Blind or Disabled -
    Taxable gross income under $17,000; proof of blindness or disability; reside in Mobile Home.
  • Veterans Deduction
    ($12,480) Veterans Disability and World War I
    ($18,720) and Spouses Exemptions - vary in
    ($24,960) eligibility; ask about them.
    Use this link for the electronic form from the State of Indiana's site. This form can be mailed (with copy of letter of disability from the local Veterans Administration Office located at 201 NW Fourth St, Room 303 Old Courthouse Building) or brought into the Auditor's Office located at Room 208 Civic Center Complex, 1 NW Martin Luther King Jr Blvd, Evansville, IN 47708-1880.

Mobile Homes may receive all deductions if all requirements are met. Deduction amount cannot exceed one-half of the assessed amount. They are assessed on January 1 and billed in the same year. Deductions/ credits for Mobile Homes must be filed by April 1, 2019. You will be given a receipt and it is strongly suggested that you keep that receipt for your records.

Filing Deadlines

Information listed below includes Property Tax filing deadlines, eligibility requrirements and what to bring to file Real Property Tax Deductions/ Credits and
Mobile/ Manufactured Home Deductions/ Credits in the Auditor's Office:

Real Property Tax Deductions/ Credits
January 6, 2020 is the deadline to file your property tax deductions for 2019 taxes payable in 2020. If you purchased your property by December 31, 2019, your application must be signed and dated prior to December 31, 2019 and filed in the Vanderburgh County Auditor's Office by January 6, 2020. To be eligible for these deductions in 2020, persons must be the owner of their primary residence as of December 31, 2019. If you have previously filed a deduction on your property, you would only need to re-file if you have moved or refinanced.

The following deductions /credits are available to those who qualify:

  • Homestead Deduction (Standard and Supplemental)- Once filed on your residence, only needs to be re-filed if you move.
    • If you are entitled to a Standard Homestead Deduction, you are entitled to receive the Supplemental Homestead Deduction.
    • Both the Standard and Supplemental Homestead Deductions are under one application and can be filed on a Sales Disclosure Form.
  • Mortgage Deduction- Once filed, only needs to be re-filed if you have refinanced. Must bring:
    • Date of Closing
    • Amount of Mortgage
    • Name of Finance Company or Institution.
  • Over 65 Deduction
    • Must turn 65 by 12/31/19
    • Combined adjusted gross income limit is $25,000
    • Must bring in 2018 Federal tax return
    • Assessed value on residential property not to exceed $182,430
    • Must own property or been buying on contract for at least one year before claiming deduction.
  • Over 65 Circuit Breaker Credit - Prevents eligible senior citizen's property tax liability from increasing by more than 2 percent.
    • Must qualify for Homestead Standard Deduction and turn 65 by 12/31/19
    • Adjusted gross income not to exceed $30,000; combined adjusted gross income not to exceed $40,000
    • Must bring copies of pages one (1) and two (2) of 1040 for 2018 (copies for all listed on property)
    • Assessed value on residential property not to exceed $159,999
    • Must own property or been buying on contract for at least one year before claiming deduction.
  • Blind / Disability Deduction - Must bring:
    • Doctor's statement for proof of blindness or disability, or
    • An Awards Letter from Social Security for proof of disability.
  • Veterans Deduction- with total or partial disability. Must bring:
    • VA Statement of Benefit Record (Form 20-5455) with a code one listed in Item # 15 or
    • Pension Certificate or
    • Award of Compensation or
    • Letter of Disability from the local Veterans Administration Department located at 201 NW Fourth St., Room 303 Old Courthouse Building.
  • Deductions for Model Homes-
    • 50% on assessed value of improvements. This does not include the land on which it is located.
    • May file on property that consists of a single family residence, single family townhouse, or single family condominium unit that has never been occupied as a principal residence and is used as a display or demonstration to perspective buyers. Owner's regular office space is not considered a model residence (sales office is considered part of the model residence).
    • Must file each year.
    • Model residences located in a TIF area are not eligible for this exemption.
    • Click here for the Application for Model Residence Deduction with instructions and qualifications.
  • Deductions for Residence in Inventory-
    • The deduction is available to a person that builds a single family residence, a single family townhouse, or a single family condominium unit and holds it for sale in the ordinary course of the person's trade or business.
    • The application must be filed for each assessment date for which the property owner wishes to receive this deduction.
    • This deduction is available to qualifying properties first assessed as partially completed or fully completed structures for the assessment date of March 1, 2012 and later years.
    • For more information click Application for Residence in Inventory Deduction form with instructions and qualifications.


Your deductions need to be filed in the Auditor's Office, Room 208 of the Civic Center Complex (on the second floor.) Our office hours are 8:00 AM to 4:30 PM Monday through Friday. Please call 812-435-5293 with any questions. If you would like to fill out a form online, visit the State's website at http://www.in.gov/dlgf/2344.htm.

Mobile/ Manufactured Home Deductions/ Credits

April 1, 2019 is the deadline to file your property tax deductions for mobile or manufactured homes (not assessed as real property) taxes payable in 2019. If you have previously filed a deduction on your mobile or manufactured home, you would only need to re-file if you have moved or refinanced.

Mobile or manufactured home deductions need to be filed in the Auditor's Office, Room 208 of the Civic Center Complex (on the second floor.) Our office hours are 8:00 AM to 4:30 PM Monday through Friday. To contact the Auditor's Office, please call 812-435-5293 or 812-435-5302.

To qualify for a deduction, you must own (your name must be listed on the title- please bring in this title to file) and live in the mobile or manufactured home on or before January 1, 2019 and must file on or before April 1, 2019, for taxes payable in 2019. If you are purchasing the mobile home on contract, you must bring a copy of the recorded contract to file for an exemption. The contract must be signed and recorded on or before January 1, 2019. The following exemptions are available to those who qualify:

  • Homestead Deduction- Once filed on your residence, only needs to be re-filed if you move.
    • One application can be filed for both the Standard and Supplemental Homestead Deductions.
    • If you are entitled to a Standard Homestead Deduction, you will receive a Supplemental Homestead Deduction.
    • Must bring in title with your name listed on the title or a contract that has been signed and recorded on or before January 1, 2019.
  • Mortgage Deduction- Once filed, only needs to be re-filed if you have refinanced. Must bring:
    • Mortgage statement from Finance Company/ Institution or payment book.
  • Over 65 Deduction
    • Must turn 65 by 12/31/19
    • Combined adjusted gross income limit is $25,000
    • Must bring copy or copies (one for all listed on property) of 1040 for 2018
  • Over 65 Circuit Breaker Credit
    • Must turn 65 by 12/31/19
    • Adjusted gross income not to exceed $30,000; combined adjusted gross income limit is $40,000
    • Assessed value not to exceed $160,000.
    • Must bring copy or copies (one for all listed on property) of 1040 for 2018
  • Blind / Disability Deduction - Must bring:
    • Doctor's statement for proof of blindness or
    • An Awards Letter from Social Security for proof of disability.
  • Veterans Deduction- with total or partial disability. Must bring:
    • VA Statement of Benefit Record (Form 20-5455) with a code listed in Item # 15 or
    • Pension Certificate or
    • Award of Compensation or
    • Letter of Disability from the Veterans Administration.

Your deductions need to be filed in the Auditor's Office, Room 208 of the Civic Center Complex (on the second floor.) Our office hours are 8:00 AM to 4:30 PM Monday through Friday. Please call 812-435-5293 with any questions. If you would like to fill out a form online, visit the State's website at http://www.in.gov/dlgf/2344.htm

Abatements

Property tax abatement has been used  to encourage the expansion of Indiana's economy and job base. Technically known as the "Economic Revitalization Area" Deduction or "ERA" Deduction, tax abatement, when used as part of an overall economic development program, can be an important tool in securing investment and job creation. Improvements to blighted or run-down areas are but one example of the use of the ERA Deduction.

Forms are available from the State website. Click here to view all available forms.

What is an ERA Deduction?

The ERA Deduction is available to taxpayers who redevelop or rehabilitate real property or install new manufacturing equipment in what is known as an " Economic Revitalization Area". With respect to real property, only a structure or building can qualify for abatement; land is not included.

Steps in the Abatement Process:

There are two basic phases in the tax abatement process. First, the local governing body must give its permission or approval to the taxpayer to receive the ERA Deduction. Then, the taxpayer must submit the required paperwork to effectuate the deduction.

  • Obtaining Local Approval:

    The local governing body is generally the fiscal body of the county, city or town, except in a county that contains a consolidated city; the designating body is the metropolitan development commission. The decision to declare a particular area an ERA Area is the responsibility of the local governing body.

  • Submitting the Required Paperwork:

    Even with the approval from the local governing body, the taxpayer must file a deduction application with the appropriate office in order to receive the ERA deduction. For personal property, Form 103-ERA and a Form CF-1/PP are to be filed annually with the County Assessor as an attachment to your personal property return. These forms are due May 15 unless an extension on personal property has been filed. For real estate, a Form 322 ERA is to be filed with the County Auditor by May 10 of the year in which the assessed valuation is made except when a notice of assessment (Form 11) is not given to the property owner by April 10 of that year. In this case, the deduction application must be filed not later that thirty (30) days after the date such a notice is mailed. Form CF-1/RE must also be filed with the County Auditor each year by May 15. (IC 6-1-1-12.1)

Conclusion:

The ERA Deduction has proven to be a useful economic development tool when used as part of an overall economic development program and has been instrumental in securing investment and job creation that would otherwise not have taken place. However, the ERA deduction process can also be quite complicated. This page was intended to communicate information of a general nature. Because tax abatement can be an important component of an economic development project, taxpayers should give the ERA Deduction the attention it deserves. It is strongly recommended that taxpayers and local designating bodies consult their respective legal counsel before, during, and after each step of the process.

Because of the changing nature of legislation in this arena, taxpayers should also be ever watchful for changes in legislation affecting the ERA Deduction.

If property is in an economic revitalization area, you may be entitled to the balance of an abatement; so come to the Vanderburgh County Auditor's office and have the abatement transferred to your name.

For further information please contact the Economic Development Specialist in Metropolitan Development at 812/436-7823 or Charlene Decker of the County Auditor's Office at 812/435-5464.

Enterprise Zone
Investment Deduction
The Investment Deduction is available to Evansville Enterprise Zone businesses on qualified investments on real and personal property. (IC 6-1.1-45) A "qualified investment" means any of the following expenditures relating to an enterprise zone location on which a taxpayer's zone business is located:
  1. The purchase of a building.
  2. The purchase of a new manufacturing or production equipment.
  3. Cost associated with the repair, rehabilitation, or modernization of an existing building and related improvements.
  4. Onsite infrastructure improvements.
  5. The construction of a new building.
  6. Cost associated with retooling existing machinery.

A taxpayer that desires to claim the deduction, must file an EZ-2 Form with the Vanderburgh County Auditor between March 1 and May 15. When filing on personal property investments, attach a copy of your Personal Property Assessment Form 103 and include an equipment list with acquisition dates, costs and equipment descriptions. When filing on real estate improvements, you may not have your Form 11 or Notice of Assessment by the May 15 due date. In this case, file the EZ-2 form by May 15 and note on the form that you have not yet received your Form 11.

Credit will appear on tax bills for the following May and November.

A Business Commitment of Enterprise Zone Credits form must be completed and submitted to the Evansville Urban Enterprise Association for program participation. For further information contact them at:

135 South Garvin Street
Evansville, IN 47713
812-426-2490 / FAX 812-426-2551

Website: www.euea.org

Click here to view the EZ-2 form.

To view the Evansville Urban Enterprise Zone Map along with Street addresses and numbers in the Enterprise Zone, click here.

Forms

Property Tax Bill Address Change

MVP Tax Software Access Form
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