Overview of Indiana Taxes
Indiana has relatively low property taxes. The median annual property tax bill in the Hoosier State is just $1,798, which is significantly less than $3,211 that the median American homeowner pays. The effective property tax rate in Indiana is 0.74%, which is also lower than the national mark of 0.89%.
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To calculate the exact amount of property tax you will owe requires your property's assessed value and the property tax rates based on your property's address. Please note that we can only estimate your property tax based on median property taxes in your area. There are typically multiple rates in a given area, because your state, county, local schools and emergency responders each receive funding partly through these taxes. In our calculator, we take your home value and multiply that by your county's effective property tax rate. This is equal to the median property tax paid as a percentage of the median home value in your county.
Indiana Property Taxes
Thinking about a move to the Hoosier State? Good news: Indiana has relatively low property taxes.
The amount you'll pay in property taxes varies depending on where you live and how much your home is worth, but the statewide effective property tax rate is 0.74%. The effective property tax rate represents the percentage of a typical home’s value that homeowners pay in property taxes each year. Homeowners who live in their primary residence in Indiana are eligible for a number of deductions that can push rates below that average, though.
Before purchasing a property in Indiana, it might be a good idea to take a look at our mortgage guide. It includes important information about mortgage rates and key details about getting a mortgage in the Hoosier State.
A financial advisor can help you understand how homeownership fits into your overall financial goals. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
How Property Taxes Work in Indiana
Real estate owners in the state of Indiana must pay taxes on their property every year. Taxes can be divided into two annual installments, with one being due on May 10 and the other on November 10.
As in most other states, the Indiana property tax is ad valorem, meaning it's based on the value of property. Each county has an assessor who is responsible for an annual assessment of every property in the county. This is done through a mass appraisal that looks at general property attributes like size and year of construction, as well as the prices of recent sales in the area, in order to determine the property’s market value.
The initial assessed value, which should be equal to your home’s market value, is called the gross assessed value. Once it has been determined, deductions are applied.
The most common deduction is the Homestead Standard Deduction, which is equal to 60% of the gross assessed value up to a maximum of $40,000 in 2026. It is available for owner-occupied primary residences. The Supplemental Homestead Deduction is also for owner-occupied primary residences. For tax year 2026, this is equal to 40% of assessed value (after the Homestead Standard Deduction has been applied).
Once deductions have been subtracted, you are left with the property's net assessed value. This is the amount to which your local tax rates are applied.
Indiana Property Tax Rates
Tax rates in Indiana are recalculated every year by local tax authorities, such as schools, counties, townships and libraries. The rates are based on the total revenue the tax authority is allowed to collect (the levy) and the total tax base (the total value of net assessed value in the district).
So, for example, if a school district can collect $1,000,000 in revenue and the tax base is $100,000,000, the tax rate will be 0.01%. That’s $1,000,000 / $100,000,000.
That 0.01% is the nominal rate, which you apply to your net assessed value (after all deductions). To know how much you are paying in terms of your home’s value, pay attention to your effective tax rate, which is your total annual taxes paid as a percentage of your home's value. The table below shows the effective tax rates, median home values and median property tax payments for a cross section of counties in Indiana.
Looking to calculate your potential monthly mortgage payment? Check out our mortgage calculator.
Marion County
Marion County contains the city of Indianapolis, which is part of the reason why it's the most populous county in Indiana. It also has one of the highest effective tax rate of any Indiana county at 0.93%.
If you have questions about how property taxes can affect your overall financial plans, a financial advisor in Indianapolis can help you out.
Lake County
Lake County has the highest property taxes of any county in Indiana. This is in part because of high property taxes in the city of Gary. Taking all districts and deductions into account, the effective property tax rate in Lake County is 0.92%.
Allen County
The median real estate tax payment in the county is $1,980 per year, which is slightly higher than the statewide median. The typical home in Allen County costs $249,100, leading to an effective property tax rate of 0.79%.
Hamilton County
Hamilton County sits north of Indianapolis and is one of the fastest-growing counties in the country. It also has the highest property values of any county in Indiana, with a median home value of $437,400. As a result, property tax payments are also higher. The median annual property tax payment in Hamilton County is $3,892. The county's effective tax rate is not quite as high, however, at 0.89%.
Saint Joseph County
The effective tax rate in St. Joseph County (median annual taxes paid as a percentage of median home value) is equal to the national median of 0.89%. The median homeowner in St. Joseph County pays significantly less in annual property taxes: $1,907.
Elkhart County
The typical homeowner in Elkhart County pays $1,966 annually in property taxes. Elkhart's effective property tax rate is 0.82% thanks to a median home value of $239,500.
Vanderburgh County
Located in southwest Indiana, Vanderburgh County has an effective property tax rate of 0.74%. At this rate, the median homeowner pays $1,570 per year in property taxes. Depending on where in the county you live, however, that amount may vary.
Tippecanoe County
The effective property tax rate in Tippecanoe County sits at about 0.64%. Since specific rates may apply to net assessed value, homeowners who are able to claim the Homestead Standard Deduction and the Supplemental Homestead Deduction can expect to pay lower rates as a percentage of home value.
Porter County
One of the most populous counties in Indiana, Porter County sits on the shores of Lake Michigan to the east of Lake County. It has one of the highest effective property tax rates in the state at 0.84%.
Hendricks County
The median annual property tax payment in Hendricks County is $2,656, one of the highest in the state of Indiana. That is, in part, driven by high real estate values, as it also has one of the highest median home values ($338,100) of any Indiana county.
