Save Money by Filing for Your Homestead and Mortgage Exemptions
June 5th, 2017
June 5th, 2017
If you’re an Indiana homeowner, did you know you can save a lot of money by filing for homestead and mortgage exemptions? You may have heard other people talk about property tax deductions, which is another name for mortgage exemptions and homestead exemptions.
Property tax deductions help reduce how much you pay in property taxes each year on your home and property.
If your home is your primary residence in Indiana – and not a rental or vacation house, you can file for the homestead exemption. A homestead is defined as your primary residence (including a mobile or manufactured home), one garage, and up to one of acre of land immediately surrounding the home.
The homestead deduction reduces the gross assessed value of your homestead portion of your property by up to 60% or $45,000. Hoosier individuals and married couples can only receive one homestead exemption on one particular homestead property in a year.
You can apply for a mortgage exemption if:
- You’ve purchased a home and you have a mortgage.
- You’ve refinanced your mortgage.
- You’ve changed your deed or you’ve changed the ownership name on the property title.
To determine the total amount of the deduction that you can receive each year:
- The county auditor looks at the balance on your mortgage on the assessment date, which typically January 1.
- The total amount you can receive as a mortgage deduction is less than: (a) The balance on your mortgage on the assessment date; (b) One-half of the assessed value of your property; or (c) $3,000.
If you’ve recently purchased a home, a homestead exemption is typically filed for you as part of the closing process. However, you may want to check with your county auditor’s office to make sure your exemption was recorded.
If you purchased a home or refinanced, the mortgage exemption form is not filed for you at closing. You must file the form before December 31 to receive the deduction for the following year’s property taxes. Your deed must be recorded, so it’s a good idea to wait at least 30 days after closing. If you refinanced your mortgage, you must refile for a mortgage exemption again. It doesn’t transfer from the previous mortgage.
You don’t need to reapply for these deductions each year – only when you sell your property, change your title, or refinance your home (mortgage deduction only).
You may file in person, via mail or online (depending on the county in which your property is located).
To file in person, you should take the packet you received at closing to your county auditor’s office. Tell them you need to file your mortgage exemption.
To file via mail, you can obtain the mortgage exemption form at the IN.gov website.
To file online, below are the links to several Indianapolis-area county auditor’s offices.
Below are the addresses for Indianapolis-area counties to file in person or online.
201 Courthouse Square
Lebanon, IN 46052
33 N. 9th St., Suite L21
Noblesville, IN 46060
111 W. American Legion Place, Suite 217
Greenfield, IN 46140
355 S. Washington, Suite 202
Danville, IN 46122
86 W. Court St.
Franklin, IN 46131
16 E. 9th Street, Room 101
Anderson, IN 46016
180 S. Main, Suite 104
Martinsville, IN 46151
25 W. Polk Street, Room 205
Shelbyville, IN 46176
When filing for these exemptions, make sure you get and keep the receipt. It’s your only proof that you’ve filed.
Filing for the homestead and mortgage exemptions takes a little time and effort, but it’s well worth the savings.
If you’re thinking about buying a new home or refinancing your existing home, the Indianapolis mortgage broker experts at Grandview Lending can help you. Our mortgage specialists listen and work with you to find the right loan solution based on your needs. Contact us today at 866-690-4920 to learn more. We want to help you fulfill your homeownership goals.
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