Ruling revives one-acre limit for Indiana's 1% residential property tax cap

Dan Carden

The Indiana Supreme Court has overturned a 2024 Tax Court ruling that could have further upended residential property tax collections across the state — beyond even the largely yet-to-be-felt impact of Senate Enrolled Act 1 .

In a case originating in Lake County, the state's high court reinstated the statutory one-acre limit on homesteaded residential property eligible for a maximum annual property tax charge equal to or less than 1% of its assessed value.

Indiana Tax Court Judge Justin McAdam said last year nothing in the Indiana Constitution authorizes the Legislature to restrict the application of the state's 1% property tax cap to a single acre of residential property, and homeowners with lots larger than one acre may be entitled to have the 1% cap applied to their en