FINANCIAL ADVANTAGE
Additional Benefits For Indiana Veterans
Indiana Veterans and their families may qualify for valuable benefits that can lower property taxes, reduce college costs, and make buying a home more attainable. From major tax relief for totally disabled Veterans to tuition exemptions for qualifying children and Veteran-friendly home financing, Indiana offers several ways to help Hoosier military families make their earned benefits go further.
Tax Relief
Property Tax Benefits for Veterans in Indiana
- Totally disabled Veterans may qualify for a 100% property-tax deduction. An Indiana Veteran may have 100% of the assessed value of their principal residence deducted if they served in the Armed Forces for at least 90 days, received an honorable discharge, have a total disability, and lived in Indiana for at least one year before the applicable assessment date.
- Other disabled Veterans can qualify for valuable deductions, too. Indiana provides a $24,960 deduction from the assessed value of a qualifying Veteran's primary residence for certain wartime Veterans with a VA service-connected disability rating of at least 10%. Indiana also has a separate $14,000 disabled Veteran deduction, and some Veterans may qualify to combine deductions depending on their circumstances.
Family Tuition Assistance
Education Benefits for Indiana Veterans & Families
- Children of disabled Veterans can receive up to 124 credit hours of tuition assistance. Indiana's Tuition and Fee Exemption for Children of Disabled Veterans or Purple Heart Recipients can cover up to 100% of tuition and regularly assessed fees for up to 124 semester credit hours at Indiana public colleges and universities. Eligibility includes qualifying children of Veterans with a VA service-connected disability, subject to service, residency and other program requirements.
- The benefit can now help at eligible private colleges, too. Students who graduated high school in 2023 or later may receive an annual award of up to $5,000 toward tuition and regularly assessed fees at participating Indiana private nonprofit colleges and universities. Eligible students have eight academic years to use the exemption after first using the benefit.
Home Financing
Home Financing Benefits for Indiana Veterans
- Veterans may be able to skip the first-time homebuyer requirement. Indiana's homebuyer programs generally have income, credit, debt-to-income, purchase-price and other requirements. However, IHCDA specifically identifies Qualified Veterans as an exception to the first-time homebuyer requirement that otherwise applies in many areas of the state.
- VA-backed financing can eliminate two major homebuying expenses. Eligible Indiana Veterans using a VA-backed purchase loan can often buy with no down payment when the sales price doesn't exceed the appraised value, and VA-backed loans don't require monthly PMI or MIP. Veterans receiving VA compensation for a service-connected disability may also be exempt from the VA funding fee.
Sources
- Indiana Department of Veterans Affairs — Disabled Veteran Property Tax Benefits
- Indiana Department of Veterans Affairs — Disabled Veteran Property Tax Deduction Fact Sheet
- Indiana Commission for Higher Education — Tuition and Fee Exemption for Children of Disabled Veterans
- Indiana Department of Veterans Affairs — Tuition and Fee Exemption
- Indiana Government — IHCDA Homebuyer Program Eligibility
- U.S. Department of Veterans Affairs — VA-Backed Purchase Loans
- U.S. Department of Veterans Affairs — VA Funding Fee and Closing Costs