Property Taxes in Indiana: Rates, Exemptions, and How They Work (2026)
TL;DR
Indiana property taxes are capped at 1% of assessed value for homesteads, 2% for other residential and agricultural, and 3% for commercial and industrial. Property is assessed at 100% of market value with annual trending. The standard homestead deduction is $48,000 or 60% of assessed value, whichever is less. The supplemental homestead deduction provides additional relief. Appeal to the county assessor informally, then to the county Property Tax Assessment Board of Appeals (PTABOA), with further appeal to the Indiana Board of Tax Review.
If you need to understand property Taxes in Indiana: Rates, Exemptions, and How They Work (2026), this is the place. Indiana's property tax caps are constitutional amendments that limit your tax bill to:.
If you qualify for multiple exemptions, apply for all of them. In most jurisdictions, exemptions stack. A senior homeowner who is also a veteran can often claim both exemptions simultaneously, doubling the savings.
The 1% Cap
Indiana's property tax caps are constitutional amendments that limit your tax bill to:
- Homestead: 1% of gross assessed value
- Other residential, agricultural: 2%
- Commercial, industrial: 3%
If your calculated taxes exceed the cap, the excess is simply eliminated. The cap does not change your assessment - it limits the tax bill itself.
Understanding this topic fully means looking at both the big picture and the specific details that apply to your situation. Every property is different, and the strategies that save the most money are the ones tailored to your particular home, location, and circumstances.
Start by gathering the basic facts about your property: its assessed value, the tax rate in your jurisdiction, and any exemptions currently applied. Then compare your situation to what is available. You may find opportunities for savings that you did not know existed.
Assessment
Property is assessed at market value-in-use. County assessors trend values annually based on sales data. Indiana transitioned from a cost-based system to market-based in 2002.
Understanding this topic fully means looking at both the big picture and the specific details that apply to your situation. Every property is different, and the strategies that save the most money are the ones tailored to your particular home, location, and circumstances.
Start by gathering the basic facts about your property: its assessed value, the tax rate in your jurisdiction, and any exemptions currently applied. Then compare your situation to what is available. You may find opportunities for savings that you did not know existed.
Exemptions and Deductions
| Deduction | Amount | Who Qualifies |
|---|---|---|
| Standard Homestead | $48,000 or 60% of AV (whichever is less) | Owner-occupied primary residence |
| Supplemental Homestead | 35% of remaining AV after standard deduction (up to $600K) | Automatically applied with standard |
| Mortgage | $3,000 | Homestead with mortgage |
| Over 65 | $14,000 (with income limits) or $25,000 | 65+ with assessed value under $240,000 |
| Disabled Veteran | $37,440 or total exemption | Veterans with 10%+ disability (100% for total) |
Do not assume you are automatically enrolled. Most exemptions require an application, and many homeowners lose years of savings simply because they never filed. Contact your county assessor's office or check their website for the application form. Bring proof of eligibility (age verification, disability documentation, veteran status, etc.) and file well before the deadline.
If you qualify for multiple exemptions, apply for all of them. In most jurisdictions, exemptions stack. A senior homeowner who is also a veteran can often claim both exemptions simultaneously, doubling the savings.
Appeal Process
- Informal conference: Contact the county assessor within 45 days of receiving your assessment notice
- PTABOA: File within 45 days of the informal conference result
- Indiana Board of Tax Review: Appeal within 30 days of PTABOA decision
- Indiana Tax Court: Final judicial appeal
Check your Indiana assessment with our free property tax analyzer.
The appeal process is designed to be accessible to regular homeowners, not just attorneys and tax professionals. You do not need to hire anyone to file. The key is preparation. Gather your evidence before the hearing, organize it clearly, and practice presenting your case in under 10 minutes. Lead with comparable sales, then cover any property record errors, and finish with photos or documentation of condition issues.
Keep your tone professional and factual. Review boards respond to evidence, not complaints. If you walk in with 3 strong comparable sales and a calm, organized presentation, you are already ahead of most appellants.
Your Next Steps
Here is exactly what to do this week to start lowering your Indiana property taxes:
- Pull your property record card. Contact your county assessor's office or check their website. Compare every detail to your actual property. Flag anything that looks wrong.
- Check recent sales in your neighborhood. Look up 3 to 5 homes similar to yours that sold in the past 12 months. If they sold for less than your assessed value, you have a case.
- File for any exemptions you have not claimed. If you are a senior, veteran, or disabled homeowner in Indiana, there may be exemptions saving you hundreds or thousands per year that you have not applied for yet.
- Mark your appeal deadline. Find the date on your most recent assessment notice and set a reminder for two weeks before. Do not let the deadline pass without acting.
Applying This in Indiana
Indiana homeowners face an effective property tax rate of about 0.81%. On a $300,000 home, that translates to roughly $2,430 per year. Even a modest reduction in assessed value creates meaningful annual savings that compound year over year.
In Indiana, the appeal process goes through the county Property Tax Assessment Board of Appeals. The process is designed to be accessible to homeowners without professional representation. You file a petition, present your evidence (comparable sales are the strongest tool), and receive a decision. Most appeals are resolved within a few months of filing.
If you have not reviewed your Indiana assessment recently, now is the time. Pull your property record card, check for errors, compare your assessed value to recent neighborhood sales, and file for any exemptions you qualify for. The combination of these steps can reduce your tax bill significantly without spending a lot of time or money.
Why Acting Now Matters in Indiana
Every month you delay is money lost. Property taxes are assessed annually, and once the tax year begins, you are locked in at your current assessed value unless you file an appeal. There is no retroactive correction for years when you overpaid but did not challenge the assessment.
In Indiana, the appeal window is limited. Once it closes, you wait a full year for your next opportunity. Homeowners who act promptly after receiving their assessment notice have the best outcomes because they have the most time to gather evidence, review comparable sales, and prepare a clear case.
If you are reading this and your current assessment notice is sitting unopened, go read it now. That single step puts you ahead of the majority of homeowners who never check their assessments at all.
Try our free tools
Frequently Asked Questions
How are property taxes calculated in Indiana?
Indiana property taxes are capped at 1% of assessed value for homesteads, 2% for other residential and agricultural, and 3% for commercial and industrial. Property is assessed at 100% of market value with annual trending.
What is the 1% property tax cap in Indiana?
Indiana's property tax caps are constitutional amendments that limit your tax bill to 1% of assessed value for homesteads, 2% for other residential and agricultural, and 3% for commercial and industrial.
When are property values reassessed in Indiana?
Property is assessed at market value-in-use. County assessors trend values annually based on sales data. Indiana transitioned from a cost-based system to market-based in 2002.
Can I appeal my property assessment in Indiana?
The appeal process is designed to be accessible to regular homeowners, with steps including an informal conference with the county assessor, filing with the PTABOA, and ultimately appealing to the Indiana Tax Court.