Property taxes in Indiana are assessed and collected at the local level — primarily by counties and municipalities — with rates varying significantly depending on where your home is located. The statewide average effective rate for 2025is 0.87%, meaning a homeowner with a $231,600 median-value home typically pays around $2,015 per year in property taxes. For a monthly perspective, that works out to roughly $168/month — a line item that should factor into every home purchase decision in Indiana.
Indiana uses a 100% assessment ratio for primary residential properties. Most states with a 100% ratio assess property at full market value — what the county believes your home would sell for — and apply a millage rate directly to that figure.
Available Exemptions in Indiana
Homestead Standard Deduction: 60% of assessed value (max $45,000). Homestead Supplemental Deduction: 35% of remaining AV. Combined saves significant amount for most homeowners.
Over 65 Deduction: $14,000 off assessed value (or 50% of AV, whichever is less). Income must be under $30,000 (single) or $40,000 (married).
Disabled veterans with service-connected disability: $24,960 off assessed value. World War I veterans and surviving spouses also qualify.
What Makes Indiana's Property Tax System Unique
Indiana's Circuit Breaker caps property taxes at 1% of AV for homesteads, 2% for other residential, 3% for commercial/industrial. This prevents extreme tax burdens. Hamilton County (Indianapolis suburb) is one of the wealthiest counties with relatively lower rates.
When Are Indiana Property Taxes Due?
Indiana property taxes are paid on a semi-annual (twice per year) basis. Due dates: May 10 and November 10. Missing a due date typically results in penalty interest (often 1–2% per month) and eventually tax liens, so it is important to calendar these dates well in advance — especially if you have a mortgage and your lender handles property tax through escrow (in which case they pay on your behalf from your escrow account).
How to Appeal Your Property Tax Assessment in Indiana
If you believe your property has been over-assessed — which is surprisingly common, especially after rapid market changes — you have the right to appeal. File with your county Property Tax Assessment Board of Appeals (PTABOA) within 45 days of receiving your notice of assessment.
To build a strong appeal, gather comparable sales (homes similar in size, age, and condition that sold recently for less than your assessed value), photos documenting property defects, and any independent appraisals you have. Many homeowners who appeal see their assessments reduced — and some jurisdictions allow free informal hearings before a formal appeal is required.
Property Tax Rates by Major Indiana Cities
Within Indiana, effective property tax rates vary significantly by city and county. Here are the major areas and what to expect:
- Indianapolis— rates in this area may differ from the 0.87% statewide average. Use the calculator above with your specific assessed value for a more accurate estimate.
- Fort Wayne— rates in this area may differ from the 0.87% statewide average. Use the calculator above with your specific assessed value for a more accurate estimate.
- Evansville— rates in this area may differ from the 0.87% statewide average. Use the calculator above with your specific assessed value for a more accurate estimate.
- South Bend— rates in this area may differ from the 0.87% statewide average. Use the calculator above with your specific assessed value for a more accurate estimate.
- Carmel— rates in this area may differ from the 0.87% statewide average. Use the calculator above with your specific assessed value for a more accurate estimate.
Note: County rates within Indiana can range from well below to well above the statewide average. Always verify the current mill rate with your county assessor's office.
Pro Tips for Indiana Property Owners
- Apply for every exemption you qualify for — many homeowners leave money on the table by not filing for the homestead or senior exemption. Applications are typically annual or one-time, and deadlines are firm.
- Review your assessment notice every year. If the county's estimate of your home's market value seems too high relative to what similar homes are actually selling for, appeal it. Even a 10% reduction on a $400,000 assessment saves $400–$700/year at typical Indiana rates.
- If you have a mortgage, confirm with your lender whether property taxes are paid via an escrow account. If so, ensure your escrow balance is adequate — under-funded escrow leads to an escrow shortage and a sudden increase in your monthly mortgage payment.
- Pay early if your state offers discounts. Some states (like Florida) give 1–4% discounts for early payment. On a $5,000 tax bill, a 4% early-payment discount saves $200 — for essentially zero work.
- Property taxes are generally deductible on your federal income tax return as part of the SALT deduction (state and local taxes), subject to the $10,000 cap introduced by the Tax Cuts and Jobs Act. For high-tax states, this cap is often a binding constraint.