Many Fishers residents may remember Mike Reuter, the long-time Chief Financial Officer for Hamilton Southeastern Schools who retired at the end of 2019. Since then, he has launched his own consulting business, advising local governments, including the City of Fishers.

Reuter presented an overview of the revenue side of the city’s 2026 budget during a City Council Finance Committee meeting Wednesday morning. He said the budgeting process this time is “significantly different from last year,” citing sweeping changes made earlier this year by the Indiana General Assembly.

Mayor Scott Fadness described the new system as “unbelievably complicated,” noting that some changes will take effect immediately while others will phase in over the next several years.

For years, Indiana has tried to control property tax bills through rate caps and so-called “circuit breakers,” which limit what homeowners pay. Now, a new state law creates a 10% property tax credit—capped at $300—for homeowners. In Fishers, most residents will qualify for the full $300 credit. Although the city’s property tax rate is projected to decrease slightly in 2026, rising home valuations may still push tax bills higher. Reuter explained that the new credit will soften those increases.

Additional changes are coming to the Homestead Deduction. Homeowners in 2025 will receive a 37.5% supplemental deduction, increasing gradually to 66.7% by 2031. The deduction is set at 40% for 2026, which will reduce the taxable base for property taxes.

Fishers has worked to keep its share of the property tax rate stable over the past six years. However, with the taxable base shrinking, Reuter warned that rates will likely begin to rise in 2027. Fadness added that the impact will vary widely among homeowners, while traditional commercial real estate—particularly office buildings—could face the steepest increases.

Reuter also reported that Hamilton County’s income tax base rose 2.7% this year, lower than increases in neighboring counties such as Hancock, Johnson, and Marion.

Historically, Indiana cities have relied heavily on property taxes for revenue. Fadness predicted the new system will balance property and income taxes more evenly, with Fishers drawing on both sources at roughly equal levels. He said discussion about the 2028 rate will begin in mid-2026.

Currently, Hamilton County collects a 1.1% local income tax and distributes it to cities and towns under a formula set by state law—a system that has been largely unchanged for 50 years. But beginning in 2028, local governments will set their own income tax rates, within state limits.

Fishers City Council will establish its 2028 income tax rate during a three-month window between July 1 and October 1, 2027, and will set the rate annually going forward. Fadness urged council members not to shy away from the new responsibility, arguing it will give Fishers greater control over its financial future. “I think this will be a good thing for Fishers residents long term,” he said.

One potential complication, according to Reuter, involves credit rating agencies. Firms such as Standard & Poor’s may be cautious about debt backed by income tax revenue if city councils can later reduce those tax rates, which could prompt further action by state lawmakers.