CARMEL, IN Hoosier homeowners are seeing property tax relief in 2026, but local governments across the state are facing tighter budgets as a result.

Indiana Senate Bill 1, signed into law by Gov. Mike Braun in April, provides homeowners with a 10% reduction or up to $300 off their property tax bills.

While the measure was designed to help Hoosiers manage housing costs, city leaders say the cuts are straining local finances.

Carmel Mayor Sue Finkam said the law is leaving her city with difficult choices.

There's about $9 to $10 million difference, Finkam said. So that's a significant decrease in available funding.

Finkam, who pledged a net-zero budget when she took office in 2024, has proposed increases of 10% for Carmel Fire and 8% for police in her 2026 budget.

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