Indiana veteran taxes

Military retired pay in Indiana

Exempttax year 2025Source 1

Indiana allows a deduction for military retirement pay received as a result of active or reserve service in the armed services; since tax year 2022 the deduction equals 100 percent of the benefits, with no minimum age (IC 6-3-2-4). From January 1, 2025 the deduction also covers the Space Force, the Public Health Service Commissioned Corps and the NOAA Commissioned Officer Corps.

Survivor Benefit Plan annuities

ExemptSource 2

The same Indiana deduction covers survivor’s benefits received as a result of the individual’s active or reserve service in the armed services, at 100 percent since tax year 2022 (Department of Revenue Income Tax Information Bulletin #6, June 2025). The bulletin does not use the name Survivor Benefit Plan.

Property tax relief for disabled veterans

Exemption or creditSources 3, 4, 5, 6

Beginning with the 2026 assessment date (taxes payable in 2027), HEA 1210-2026 gives a deduction of 100% of the assessed value of the principal residence of a veteran who served at least 90 days, was honorably discharged, has a total disability shown by a VA pension certificate or award of compensation or an Indiana Department of Veterans Affairs certificate, and has lived in Indiana at least one year (IC 6-1.1-12-14); there is no assessed value cap. Veterans who do not take that deduction may receive a $350 credit (wartime service, honorable discharge, service-connected disability of at least 10%, IC 6-1.1-51.3-6) and a $250 credit (at least 90 days of service, age 62 or older, disability of at least 10%, IC 6-1.1-51.3-5). Applications go to the county auditor by January 15 of the year the taxes are first due.

• The Department of Local Government Finance says the 100% deduction does not require the total disability to be service-connected, and that a veteran receiving it may not also receive the $350 or $250 credits.
• Before the 2026 assessment date the benefits were deductions of $24,960 (service-connected disability of at least 10%, wartime service) and $14,000 (total disability, or age 62 with at least 10%, assessed value up to $240,000).
• A separate deduction of 50% to 100% of assessed value, matching the disability rating, applies to a homestead donated to a veteran with a disability of at least 50% (IC 6-1.1-12-14.5).

Vehicle registration for disabled veterans

Fee waiver or discountSources 4, 7

No disabled-veteran registration or plate fee waiver appears on the Bureau of Motor Vehicles page read; the benefit is a vehicle excise tax credit. Disabled veterans who do not own property to which the veteran property tax deduction can be applied may receive a vehicle excise tax credit equal to the lesser of the excise tax or $70 per vehicle, for no more than two vehicles, with an affidavit from the county auditor (IC 6-6-5-5.2). Any unused part of the IC 6-1.1-12-14 property tax deduction can also reduce vehicle excise tax (IC 6-6-5-5), though the Department of Local Government Finance says the 100% deduction ordinarily leaves nothing unused.

• The Bureau of Motor Vehicles pages read today say buyers of any Indiana plate pay registration fees and taxes, and refer disabled veterans to the Department of Veterans Affairs for excise tax credits; no disabled veteran registration fee waiver was found on them.