By State Sen. Daryl Schmitt (R-Jasper)
In recent years, Hoosiers have experienced rising property tax bills due to inflation that drove up their property values.
While property tax rates are set and collected by local governments, members of the General Assembly have prioritized a bill to provide relief for Hoosier property owners.
Under Senate Enrolled Act 1, two-thirds of homeowners are expected to pay less in property taxes in 2026 than in 2025, and nearly all homeowners will see relief in 2026 compared to current law.
Senate Enrolled Act 1 will also benefit Hoosier farmers, who will save $116 million. The bill also includes a two-year reduction in agricultural land property taxes by raising the maximum capitalization rate from 8% to 9%. Raising the capitalization rate reduces property taxes on farmland because the higher the capitalization rate, the lower the assessed value is on the property.
The legislation also makes local governments more accountable and transparent to their taxpayers through structural reforms, including limits on the ability of local officials to issue taxpayer-backed debt.
Property taxes help fund services like schools and public safety, and the General Assembly took the need to fund these important services into account while crafting Senate Enrolled Act 1. In fact, most local governments are still expected to see growth in their revenue in 2026 compared to 2025.
That revenue growth, however, will be lower compared to what these governments would have received without Senate Enrolled Act 1, which means they will have to tighten their belts – similar to what the state government is doing itself after the recent revenue forecast that showed the state would bring in less money than originally anticipated.
Senate Enrolled Act 1 was signed into law by the governor on April 15.
Constituents can reach out to me with any questions or concerns by email at s48@iga.in.gov or by phone at 800-382-9467.
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State Sen. Daryl Schmitt (R-Jasper) represents Senate District 48,
which includes Crawford, Dubois, Gibson, Perry, Pike and Spencer counties.
Click here to download a high-resolution photo.
