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County Homestead Credit

Porter County's homestead credit has its roots in the 2005 legislation that established the Northwest Indiana Regional Development Authority. This legislation allowed Porter County to enact a county income tax that would be used for two specific purposes: To raise the revenue needed for the county's membership in the RDA and to use the balance to fund a property tax cut for homeowners in the form of a homestead credit.

In 2016, the homestead credit rate is 8.6463%. Generally speaking, this means that homeowners save about 8.6% on their homestead tax bills (unless the Circuit Breaker tax credit cut the bill further; see below).

You can find out how much the homestead credit saved you on your tax bill by looking at line 4a on the statement that comes with your tax bill, the Treasurer's Form TS-1A. Below are some examples of the credit on homes assessed at $160,000 in select taxing districts in 2015. (These examples include the homestead deductions).

 Taxing District  Homestead credit 
 Valparaiso--Center Twp. *  $178
 Portage *  $192
 Liberty Township  $112
 Porter Township  $110
 Union Township  $116
 Washington Township  $109

*See note below

Circuit Breaker Impact 

The homestead credit is calculated on all homesteads. However, if a homestead's tax exceeds the limit allowed by the Circuit Breaker, the tax bill is reduced to the maximum allowed. In the examples above, the tax bills for the Valparaiso and Portage homesteads were reduced further after the homestead credit was applied because the tax would have otherwise exceeded the tax cap limit.

Homestead Credit Rates 

The homestead credit rate is calculated by the Indiana Department of Local Government Finance each year. The rate changes due in part to fluctuations in county income tax revenues. Below is a history of the homestead credit rates beginning in 2010. 

 Year  Homestead Credit
2010 9.6550%
2011 6.4847%
2012 6.5281%
2013 9.0485%
2014 9.8133%
2015 9.0207%
2016 8.6463%