How to Save Big with Over 65 Property Tax Deductions in 2024

Apply for Over 65 Property Tax Deductions Discover Two Ways to Save on Your Property Tax Bill Are you a property owner aged 65 or older in South Bend, Indiana? You could be eligible for significant savings on your property tax bill through two key programs: the Over 65 or Surviving Spouse Deduction and the Over 65 Circuit Breaker Credit. Even those buying on a recorded contract can benefit. Over 65 or Surviving Spouse Deduction With the Over 65 or Surviving Spouse Deduction, you can enjoy a reduction in your home's assessed value of either $14,000 or half the assessed value, whichever is less. This means a lower assessed value and, ultimately, a smaller property tax bill. Eligibility Requirements: Age: Turned 65 or older by December 31 of the prior year. Surviving Spouse: If your spouse was 65 or older at the time of their death, you must be 60 or older and not remarried. Ownership: Own or be paying on a recorded contract for at least one year. Residency: Live in the property as your primary residence. Income: Combined adjusted gross income of $40,000 or less for the prior year, including the income of your spouse and all others who own or pay rent on the property. Assessed Value: Property assessed at $240,000 or less. Other Deductions: Must not be receiving other property tax deductions except for the mortgage, homestead standard and supplemental deductions, and the fertilizer storage deduction. Over 65 Circuit Breaker Credit The Over 65 Circuit Breaker Credit is designed to limit how much your property taxes can increase each year. With this credit, your taxes will increase no more than 2 percent annually. Eligibility Requirements: Age: Turned 65 or older by December 31 of the prior year. Homestead Deduction: Must have qualified for the homestead standard deduction on the property this year and last year. Income: Adjusted gross income of $30,000 or less, or a combined adjusted gross income with your spouse of $40,000 or less. Assessed Value: Gross assessed property value of $200,000 or less on the homestead portion of the property. Ownership: Own, be buying on a recorded contract, or have a beneficial interest in the property. Get Started Don't miss out on these valuable savings opportunities. If you meet the eligibility requirements for either the Over 65 or Surviving Spouse Deduction or the Over 65 Circuit Breaker Credit, you can significantly reduce your property tax burden. For more information or to apply, contact the city-county offices or consult with a local real estate expert like Tim Vicsik at RE/MAX 100. Tim VicsikRE/MAX 100Tim@TimVicsik.com www.ND-Condos.com 

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2024 Indiana Homestead Property Assessments: Key Information and Deadlines

Homestead Property Assessments in Indiana: 2024 Basics Breaking Down Key Points Property Tax Bills: Homeowners across Indiana are receiving their pay-2024 property tax bills. These bills are based on 2023 property assessments. Payments are due in two installments: May 10th and November 12th, 2024. Notice of Assessment: In April, many residential taxpayers receive a Notice of Assessment (Form 11) from their county assessors. This form establishes the 2024 assessed property value for next year’s (pay-2025) bills. Some counties combine the 2024 assessments and pay-2024 tax bills into one form, including the assessment in the tax comparison statement portion of the bill. Market-Based Assessments: Indiana property taxes are market-based and paid in arrears. Assessments reflect the market value in use as of January of the assessment year. Tax bills are based on the previous year’s assessment. This year’s bills (pay-2024) are determined by 2023 property assessments. Bills are capped at 1% of the homestead’s gross assessed value, per the Indiana Constitution. Additional taxes may be added through school referenda and other voter-approved projects. Appealing Assessments: Homeowners can appeal an assessment before the resulting bills are calculated. Determining Market Value Property Assessments Objective Measures: Assessed values must be tied to “objective measures of market value.” For homestead residences, assessments should generally align with a home’s potential sale price. Assessment Increases: Homeowners might be surprised by increased assessments despite no renovations or improvements. Residential assessments should move with the previous year’s market: In 2022, the median sale price of an existing home in Indiana was $235,000. This price rose 4% to a $242,000 statewide median in 2023. A typical Indiana home’s assessed values would be expected to rise about 4% from January 2023 to January 2024. This increase in the 2024 property assessment would show up in pay-2025 tax bills. Local Market Variations: Housing prices vary dramatically from county to county and even block to block. Assessments reflect local market conditions from year to year. References Indiana Department of Local Government Finance Indiana Property Tax Benefits Market Value in Use Definitions and Guidelines   Tim VicsikRE/MAX 100(574) 329-9587Tim@TimVicsik.com www.ND-Condos.com    

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Making sense of Indiana Property Taxes: Are they paid in Arrears?

  Understanding Property Taxes in Indiana: How They Are Calculated, Paid, and Why They're Paid in Arrears Property taxes are a fundamental aspect of homeownership in Indiana, impacting both current homeowners and prospective buyers. To navigate this system effectively, it's essential to grasp how property taxes are calculated, paid, and the reason they are paid in arrears. Here’s a comprehensive guide to help you understand these key aspects. How Property Taxes are Calculated Assessment Process: Property taxes in Indiana are based on the assessed value of the property. County assessors determine this value using factors such as property size, location, and comparable sales in the area. Assessments are typically conducted every few years to ensure fairness and accuracy. Tax Rate: Once the assessed value is determined, property taxes are calculated using a tax rate set by local taxing authorities. These authorities include cities, counties, school districts, and other local entities. The tax rate is expressed as a percentage of the assessed value. Each taxing authority sets its own rate, contributing to the total property tax bill.  View your St Joseph or Elkhart County Tax cards here.  Deductions and Exemptions: Indiana offers various deductions and exemptions that can lower a homeowner’s property tax burden. Examples include the Homestead Deduction for primary residences and the Mortgage Deduction for mortgage interest paid. Why Property Taxes are Paid in Arrears Property taxes in Indiana are paid in arrears, meaning that they are paid after the tax year has ended. Here’s why this system is in place: Assessment Timing: Assessments are conducted periodically (typically every few years). By paying taxes in arrears, homeowners are billed based on the property's assessed value from the previous assessment period. This ensures that taxes are levied on the property’s actual value during that time frame. Budgeting and Planning: Paying taxes in arrears allows homeowners to budget and plan for their tax obligations more effectively. They have a clearer understanding of their tax liabilities based on the previous year’s assessed value.  Estimate your current year tax bill here.  How Property Taxes are Paid Billing and Due Dates: Property tax bills are issued annually by the county treasurer's office. The due dates for property tax payments vary by county but often fall in the spring and fall. Homeowners receive a tax statement outlining the total amount due, including any applicable deductions. Payment Options: Indiana provides several payment options: Direct Payment: Homeowners can pay directly to the county treasurer’s office by mail, in person, or online. Escrow Accounts: Many homeowners with mortgages pay property taxes through an escrow account held by their mortgage lender. The lender collects a portion of the estimated taxes each month as part of the mortgage payment and pays the taxes on the homeowner’s behalf. Penalties for Non-Payment: Failure to pay property taxes on time can result in penalties and interest charges. It’s crucial for homeowners to adhere to payment deadlines to avoid additional costs. Additional Considerations Property Tax Caps: Indiana imposes caps on property tax rates, limiting the amount that property taxes can increase annually. These caps provide stability and predictability for homeowners regarding their property tax liabilities. Appealing Assessments: Homeowners have the right to appeal their property assessment if they believe it is inaccurate or unfair. This involves providing evidence to support their claim and following the county's appeals process. Understanding the intricacies of property taxes in Indiana enables homeowners to manage their financial responsibilities effectively. Whether you’re buying a new home or have lived in Indiana for years, knowing how property taxes are calculated, paid, and why they are paid in arrears ensures you can navigate this aspect of homeownership confidently and responsibly.  Click here for a Glossary of Property Tax Terms.  Tim VicsikRE/MAX 100(574) 329-9587Tim@TimVicsik.com www.ND-Condos.com  

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