The average Indiana property tax rate is about 0.76% of a home’s value, which comes to roughly $1,614 a year on the typical Indiana home. That makes Indiana property tax a middle-of-the-pack burdens in the country. This guide breaks down the Indiana property tax rate, what the typical bill looks like, how your bill is figured, where the money goes, and — most useful of all — how to check
whether you are overpaying and how to pay less.
Indiana Property Tax at a Glance
| Effective tax rate | 0.76% |
| Median annual bill | $1,614 |
| Median home value | $218,200 |
| Rank among states | #29 of 50 highest |
| vs. U.S. average | $2,657 below the U.S. average ($4,271) |
| Reassessed | Indiana adjusts values every year through a process called “annual adjustment” or “trending,” where recent local sales are used to keep assessed values in line with the market; a more in-depth physical reassessment cycle also runs on a rolling basis across the state. |
Rate & bill: U.S. Census Bureau ACS 2024 5-year (effective rate B25090/B25082 – the Tax Foundation method; median bill B25103; value B25077).
| Indiana Property Tax | Figure |
|---|---|
| Effective property tax rate | 0.76% |
| Median annual property tax bill | $1,614 |
| Median home value | $218,200 |
| Rank (highest to lowest) | #29 of 50 states |
| U.S. average bill | $4,271 |
In This Indiana Guide:
What Is the Indiana Property Tax Rate?
The Indiana property tax rate is not one flat number — it is the combined result of your county, city, township, and school-district rates, applied to your home’s assessed value. Across Indiana, homeowners pay about 0.76% of their home’s value on average, or around $1,614 a year on a typical $218,200 home. That puts Indiana in the middle nationally — ranked #29 of 50 states from highest to lowest. Two
homes worth the same amount can still owe very different bills depending on the town and school district, so treat the statewide figure as a starting point, not your exact bill.
If your bill went up, start by reading the assessed value on your notice and comparing it to what your home would realistically sell for — that number drives everything else. Next, check with your county auditor that every deduction and exemption you qualify for (like the homestead or over-65 relief) is actually on your account, since a missing one can raise the bill. If the assessed value still looks
too high for what your property is worth, many homeowners choose to appeal through their county assessor within the window shown on the notice; you have the right to ask, and assessors generally will walk you through the process.
Think your Indiana bill is too high? Check in two minutes.
How Indiana Property Tax Is Calculated
Your Indiana property tax starts with an assessed value set by County assessors (and, in some townships, township assessors) value property. The county auditor then applies deductions and exemptions and calculates the bill, and the county treasurer collects it — all overseen by the Indiana Department of Local Government Finance (DLGF).. Indiana assesses property at its “market value-in-use” as of each year’s assessment date, using a mass-appraisal process, and a
value set under state law is what appears as your assessed value.
Look at the assessed value printed on your notice (Form 11) or tax statement, since that figure — not the sale price — is what your bill is built on. That assessed value is then multiplied by the combined local tax rate to produce your bill. In Indiana, property is generally reassessed Indiana adjusts values every year through a process called “annual adjustment” or “trending,” where recent local sales are
used to keep assessed values in line with the market; a more in-depth physical reassessment cycle also runs on a rolling basis across the state..
The single most important number to check is your assessed value: if it is higher than what your home would sell for, your bill is too high — and that is exactly what an appeal fixes.
The actual rates in Indiana are set by No single office sets your rate. It is the combined total of the local units that serve your property — the county, your city or town, township, school corporation, library, and any special districts — whose approved budgets are converted into rates and reviewed by the DLGF.. That is why your neighbor one town over can pay a different bill on an
identical house.
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Where Your Indiana Property Tax Money Goes
Indiana property taxes mostly fund local services where you live — public schools, county and municipal government, police and fire protection, roads, libraries, and similar local needs. Very little goes to the state itself; the money largely stays in your community. For most Indiana homeowners, the school-district share is the biggest single piece of the bill, which is why property taxes tend to be highest where schools rely most on
local funding.
One Indiana note: Indiana has a constitutional “circuit breaker” property tax cap that limits your bill to a set share of your property’s gross assessed value, with a lower cap for owner-occupied homes than for other property. This cap is a genuinely Indiana-specific protection — see the data box above for the figures, and check your assessment notice.
How Indiana Property Tax Compares
The U.S. average property tax bill is about $4,271 a year. The typical Indiana bill of $1,614 is $2,657 below that. Remember that a low rate does not always mean a low bill — a state with cheap rates but expensive homes can still cost you more than Indiana. The dollar bill and your own assessment matter more than the headline rate.
How to Lower Your Indiana Property Tax
You cannot change the Indiana property tax rate, but you have two real levers on your own bill. First, claim every exemption you qualify for. Indiana offers several property tax breaks that can lower your bill, including a homestead deduction for the home you live in, plus relief for people who are 65 or older, veterans (especially with a service-connected disability), and homeowners who are disabled or blind. You may
qualify for more than one, so it’s worth checking with your county auditor to confirm which ones apply to you — do not assume they’re applied automatically.
Second, appeal your assessment if your home is valued higher than it would sell for — studies suggest a large share of homes are over-assessed, and appeals often succeed.
Don’t want to appeal your Indiana taxes yourself? A property tax appeal service can file everything for you and usually only charges if it wins — typically a share of what it saves you. It is one option; you can also appeal on your own for free.
Frequently Asked Questions
What is the Indiana property tax rate?
The average effective Indiana property tax rate is about 0.76% of a home’s value, based on U.S. Census data. On the typical Indiana home that works out to roughly $1,614 a year. Your own bill depends on your county, city, and school district, plus any exemptions you claim — see the data box above.
Why is my Indiana property tax so high?
Property tax in Indiana is driven mostly by your local rates (especially school levies) and by your home’s assessed value. If your assessment is higher than what your home would actually sell for, you may be overpaying — that is the most common reason a bill is too high, and it is something you can appeal.
How can I lower my Indiana property tax?
Two things help most in Indiana: make sure you are claiming every exemption you qualify for (homestead, senior, veteran, or disability), and appeal your assessment if your home is over-valued. Both can lower your bill, and both are free to do yourself.
Indiana Property Tax Sources & Data
- Indiana Department of Revenue (property tax): https://www.in.gov/dlgf/understanding-your-tax-bill/citizens-guide-to-property-tax/
- Tax Foundation — Property Taxes by State & County: taxfoundation.org
- U.S. Census Bureau (American Community Survey): census.gov/acs
- Lincoln Institute of Land Policy (property tax data): lincolninst.edu
Indiana property tax rates and typical bills on this page come from U.S. Census (American Community Survey) data as
published by the Tax Foundation, and were last checked in July 2026. Rates and bills change each year and vary by county
— confirm your own figures with your county assessor before you rely on them.
More Property Tax Guides
- Property Tax Rates by State
- Property Tax by County
- Are You Overpaying? Over-Assessment Checker
- Property Tax Exemption Finder
Disclaimer: This guide is informational only and is not legal, tax, or financial advice. Know Property Tax is an independent educational resource. It is not a government agency, not a county assessor, and not a tax-appeal service. Property tax rates, bills, exemptions, and deadlines change over time and vary by county and property. Confirm anything that affects your taxes with your county assessor or a licensed professional before you act.