What is the homestead exemption in Indiana and how do I claim it?

Indiana indexes its creditor homestead and provides substantial property-tax deductions.

1. Two Concepts

Indiana has (a) property-tax deductions (Standard, Supplemental, Mortgage, Over-65) administered by county auditors and (b) a creditor/bankruptcy homestead under Ind. Code § 34-55-10-2.

2. Creditor / Bankruptcy Homestead

§ 34-55-10-2(c)(1) protects $22,750 per debtor (indexed every six years; current as of 2022); joint filers stack to $45,500.

3. Automatic vs Declaration

The exemption auto-attaches in bankruptcy; no recording is required.

4. Federal Bankruptcy Cap

Indiana opted out of federal exemptions (§ 34-55-10-1). BAPCPA § 522(p)'s $189,050 cap rarely applies.

5. Property-Tax Homestead

The Standard Deduction (§ 6-1.1-12-37) removes the lesser of 60% of assessed value or $48,000 from owner-occupied residences. The Supplemental Homestead Deduction (§ 6-1.1-12-37.5) removes an additional 35% of remaining value up to $600,000 and 25% above that. The Mortgage Deduction is now obsolete (repealed 2022). Over-65 Deduction (§ 6-1.1-12-9) is $14,000 with income limits.

6. Filing Property-Tax Exemption

File Form HC10 (and others) with the county auditor by December 31; deductions renew automatically once granted.

7. Spousal Protections

Tenancy by the entirety protects marital homes from individual-spouse judgments.

8. Loss Triggers

Failure to occupy as principal residence, conveyance, or moving without filing on the new home defeats the deductions. The auditor's audit system reclaims back deductions plus penalties.

9. Foreclosure & Forced Sale Exceptions

Purchase-money mortgages, property taxes, mechanic's liens, federal liens, and joint judgments override homestead.

This is legal information, not legal advice.