Indiana Property Tax Overview (2026)

Keywords: Indiana property tax, property tax in Indiana, Indiana property tax rate

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1. Summary of Recent Data

*Effective tax rate = (annual property tax ÷ home value) × 100.

Source: According to the U.S. Census Bureau's American Community Survey (ACS) (5‑year estimates, 2023).

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2. How the Indiana Property Tax Rate Is Applied

The Indiana property tax rate of 0.74 % is an effective rate that reflects the average amount paid relative to home value across the state. Property tax bills are calculated by multiplying the assessed value of a property by the applicable tax rate(s) set by local jurisdictions (county, township, city, school district, and special districts).

Example Calculations (based on the effective rate)

*Calculated as: Home value × 0.74 %. Actual bills may differ because of local rate variations and assessment practices.

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3. Comparison to the National Average

• Effective rate: Indiana’s 0.74 % is 0.23 % points lower than the national average of 0.97 %.
• Relative difference: This places Indiana 23.31 % below the national average effective property tax rate.
• Ranking: With a rank of #21 out of 52 (states and territories), Indiana’s property tax burden is moderate compared with other U.S. jurisdictions.

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4. Variation by County

Property tax rates in Indiana are not uniform across the state. Each of the 92 counties, as well as individual municipalities and school districts, can set their own millage rates. Consequently:

• County-level differences can cause the effective tax rate to be higher or lower than the statewide average of 0.74 %.
• Assessment practices (e.g., the percentage of market value used for assessment) may also vary, influencing the final tax bill.

Taxpayers should consult the local assessor’s office or the county’s tax website for precise rates applicable to a specific property.

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5. Considerations for Retirees and Landlords

Retirees

• Tax burden: The lower-than‑average effective rate may reduce the overall cost of homeownership for retirees compared with many other states.
• Income considerations: Indiana does not tax Social Security benefits, and certain pension income may be exempt, but property tax relief programs (e.g., the Indiana Homestead Tax Credit) are available for eligible homeowners, including seniors.

Landlords

• Rental property taxes: Landlords are subject to the same property tax rates as owner‑occupied homes.
• Deductibility: Property taxes paid on rental properties are deductible as an operating expense on federal income tax returns.
• Rate stability: Because Indiana’s effective rate is relatively stable and below the national average, the tax component of operating costs for rental properties tends to be predictable, though local variations must still be accounted for.

All statements are factual observations based on the tax structure and do not constitute endorsement of Indiana for any particular demographic.

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6. Frequently Asked Questions

Q1: How is the effective property tax rate calculated?
A: The effective rate is the total annual property tax divided by the market value of the property, expressed as a percentage. It aggregates all local tax levies (county, city, school, etc.) into a single figure.

Q2: Can I expect the same tax rate in every part of Indiana?
A: No. While the statewide average effective rate is 0.74 %, individual counties and municipalities set their own millage rates, so the actual rate for a specific property may be higher or lower.

Q3: Does Indiana offer any property tax relief for seniors?
A: Yes. Indiana provides a Homestead Tax Credit that can reduce the tax burden for qualifying homeowners, including seniors, based on income and property ownership criteria. Eligibility and credit amounts are determined by the Indiana Department of Revenue.

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7. References

• U.S. Census Bureau. American Community Survey (ACS) 5‑Year Estimates, 2023. Data tables on median home value and property tax rates.
• Indiana Department of Local Government Finance. County tax rate summaries (2026).
• Indiana Department of Revenue. Homestead Tax Credit information (2026).

All figures reflect the most recent ACS estimates available at the time of writing and are presented without adjustment for inflation or future tax policy changes.