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.
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.
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.
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) |
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.
Frequently Asked Questions
What should I know about property taxes in indiana: rates, exemptions, and how they work (2026)?
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.
What should I know about the 1% cap?
Indiana's property tax caps are constitutional amendments that limit your tax bill to:
What should I know about 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.
What is the process for appeal process?
Check your Indiana assessment with our free property tax analyzer.