If you’re buying a home in Lake County, Indiana—or already own one—you’re in luck: Indiana offers a homestead deduction that can halve your property tax cap, making it an essential benefit for new homeowners.
What You Save
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Without the deduction: your property tax rate is capped at 2% of assessed value plus any voter-approved projects.
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With the homestead deduction: your cap drops to 1% + voter-approved projects—a huge savings boost.
In plain English: you pay roughly half the property taxes once it’s in place.
A Personal Anecdote
One of my clients—let’s call her Sarah—moved into her step-up home in Munster last year from Chicago’s North Suburb. She filed online and, by year’s end, she’d reduced her tax cap from 2% to 1%. Now she’s enjoying a bigger house, but a lower tax bill. That extra cash in her pocket made a real difference during her first holiday season in her new home.
What You’ll Need to File
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A valid Indiana driver’s license or state ID (and your spouse’s, if applicable)
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Your email, phone number, and a smartphone for 2‑factor authentication
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Pay the fee $
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The property address (must match with your ID!)
How to Apply
Online (fastest):
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Visit the Lake County Auditor’s website
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Click “Auditor Deductions – Filing Deductions Online”
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Complete the form, pay the small fee, and submit securely
You’ll get confirmation emails within minutes—an initial “we received it” and then, in 5–7 business days, an approval email. Keep both handy!
After Filing: What to Expect
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Email #1: Confirmation that your application was received (e.g., “Claim for Homestead Property Tax Standard/Supplemental Deduction”)
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Email #2 (5–7 business days later): Notification of approval—or instructions if more info is needed
Pro tip: Save the approval email—you may need it if your deduction doesn’t appear on your next tax bill.
Important Caveat
If the property isn’t your primary residence (like a rental property), you don’t qualify for the homestead deduction. In that case, your property tax cap remains at 2% + any voter-approved projects
Other Indiana Property Tax Deductions
Even with the homestead deduction, you might qualify for additional credits (visit the Auditor’s site for details):
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Senior (65+)
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Blind / disabled
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Disabled Veterans
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Solar, wind, or geothermal devices
The general rule: once per filing year by December 31, matching your residency status and documentation.
Forgot to File by December 31? You Can Still Fix It!
Don’t worry — missing the December 31 deadline isn’t the end of the road. Indiana law allows homeowners to retroactively claim the homestead deduction for up to 3 years — as long as you:
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Lived in the home as your primary residence during the years you’re claiming,
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Haven’t already received the deduction elsewhere,
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File the proper forms with the County Auditor.
📄 How to Request a Retroactive Homestead Deduction (or Refund)
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Contact Lake County Auditor’s Deduction Department (219‑755‑3120 or deductions@lakecountyin.gov) and request a “Homestead Credit Refund Affidavit”.
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Provide:
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Proof of residency for each year (e.g., driver’s license, utility bill, closing docs),
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Copies of the property tax bills for those years,
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The completed affidavit.
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Submit your request — either by mail or in person to the Auditor’s office (Lake County Building A, 2293 N. Main Street, Crown Point) — or online via their portal (same process as filing before Dec 31).
If approved, the Auditor’s office will issue a refund check or apply a credit to your current year’s tax bill for any overpaid homestead taxes — and yes, this can go back up to three prior years as long as you were eligible.
Final Note from Me
Every year, a few homeowners forget to file—and it costs them hundreds or even thousands in unnecessary taxes. Don’t be one of those people! Take 10 minutes now, file before December 31, and enjoy peace of mind knowing your tax cap is slashed in half. Plus, that extra savings could mean new furniture, a backyard BBQ, or just more breathing room in your budget.
