Indiana Business Property Tax Reform: Critical Update for 2025

May 28, 2025

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latest indiana business property tax update:


Recent legislative changes have significantly altered the approach to Indiana’s business personal property tax exemption for 2025.


Here’s what your clients need to know now:


KEY LEGISLATIVE UPDATE:


  • The previously announced $1 million exemption threshold for the 2025 assessment year has been repealed. The exemption threshold for 2025 remains at $80,000 per county in acquisition cost.


  • The exemption will jump to $2 million per county for the 2026 assessment year and beyond, as originally planned.


  • If your clients filed a 2025 business personal property tax return before April 15, 2025 and claimed the now-repealed $1 million exemption, they must file an amended return by May 31, 2025 to remain compliant with the law.


  • The phase-out of the “30% floor” on depreciation for new equipment placed in service after January 1, 2025, remains in effect.


Contact Baden Tax Management today to ensure you're positioned for compliance—and savings.


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