Indiana Mortgage Interest Tax Deduction

Indiana Department of Revenue

Available Property Tax Relief

About This Program

Indiana state income tax deduction for mortgage interest paid on your principal residence. Deduct up to $3,000 on your Indiana state income tax return, in addition to any federal mortgage interest deduction you claim. Must itemize on federal return.

Tax savings based on maximum deduction and Indiana income tax rate of 3.15%

Official program page checked live on 2026-06-17.

Data last verified 2026-06-09. How we verify our data.

Key Details

  • Deduct up to $3,000 mortgage interest on state return
  • Must be on principal residence mortgage
  • Must itemize deductions on federal return
  • Claim on Indiana Schedule 2 (Form IT-40)
  • Available to all Indiana homeowners

How to Apply

A grant-savvy contractor in Zionsville, IN can handle the paperwork, inspections, and timelines so your funding releases on schedule. Getting matched is free.

Your application paperwork

Documents you will likely need

  • Proof you own and live in the home (deed, recent mortgage statement, or property tax bill).
  • A government-issued photo ID for every owner on title.
  • The program's own application form, completed (use the official link or phone number on this page).

Requirements vary by program and locality. Confirm the exact rules on the official program page. We can help you prepare your paperwork, but you submit it yourself.

Deadline: Annual tax filing deadline (April 15)

Questions about this program?

Ask us. It is free, and a real person answers within a business day.

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Grant-approved contractors understand the documentation, inspections, and timelines, so your funding releases on schedule.

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