Property Taxes in Indiana
Indiana's effective property tax rate is 0.77%, ranking #24 out of 50 states (1 = lowest). The median annual property tax paid is $1,371.
Indiana's property tax system includes a constitutional cap that limits total property taxes to 1% of assessed value for homesteads, 2% for non-homestead residential, and 3% for other property. This cap, combined with a standard homestead deduction of 60% of assessed value (up to $45,000) and a supplemental deduction for homes assessed over $600,000, makes Indiana's effective property tax rates among the most predictable and moderate in the Midwest. The result is that no matter how many taxing districts overlap your property, your tax bill cannot exceed 1% of your home's assessed value.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Tax Foundation, U.S. Census
Tax Rate
0.77%
Median Annual Tax
$1,371
National Rank
#24 of 50
1 = lowest
Homestead Exemption
Yes
Annual Property Tax by Home Price
| Home Price | Annual Tax | Monthly |
|---|---|---|
| $200,000 | $1,540 | $128 |
| $300,000 | $2,310 | $193 |
| $400,000 | $3,080 | $257 |
| $500,000 | $3,850 | $321 |
| $750,000 | $5,775 | $481 |
* Based on the average effective rate of 0.77%. Actual rates vary by county and municipality.
Homestead Exemption in Indiana
Up to $22,750
File for the homestead exemption after purchasing your primary residence in Indiana to reduce your assessed property value, lowering your annual tax bill. Contact your county assessor's office for the application.
How Indiana Compares
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