Indiana property tax is capped by the state constitution at 1% of gross assessed value for a homestead, 2% for other residential and agricultural property, and 3% for commercial, industrial, and personal property, no matter how high your local rate climbs.1Indiana General Assembly. Indiana Code 6-1.1-20.6-7.5 – Calculation of Credit On top of that ceiling, the standard homestead deduction can knock up to $45,000 off your home’s assessed value, and a supplemental deduction takes another 40% off what remains.2Indiana Department of Local Government Finance. Property Tax Deductions and Exemptions Between the caps and the deductions, most Indiana homeowners pay far less than a straight rate calculation would suggest.
How Your Bill Gets Built
Four steps stand between your property and the number on your statement. First, the county assessor sets a gross assessed value based on what Indiana calls market value-in-use, meaning what the property is worth given how it’s currently used. Second, deductions come off that gross value to produce a net assessed value. Third, your local tax rate (expressed as dollars per $100 of net assessed value) is applied.3Indiana Department of Local Government Finance. Citizen’s Guide to Property Tax Fourth, the circuit breaker cap kicks in if the calculated tax exceeds the constitutional ceiling for your property type.
Your rate isn’t set by one office. Your county, township, city or town, school corporation, library district, and any special districts each adopt a budget, and those budgets stack into a single consolidated rate on your bill. Two homes with identical assessed values can owe very different amounts because they sit in different combinations of districts.
The Circuit Breaker Caps
The caps, formally called circuit breaker credits, limit your total bill to a fixed percentage of your gross assessed value:1Indiana General Assembly. Indiana Code 6-1.1-20.6-7.5 – Calculation of Credit
- 1% for homesteads (your primary residence)
- 2% for other residential property, agricultural land, and long-term care facilities
- 3% for commercial, industrial, and personal property
If the taxes calculated from your local rate exceed the cap, the excess is credited back automatically. You don’t file anything to get it. In high-rate districts the credit can eliminate hundreds or thousands of dollars from the raw calculation.4Indiana Department of Local Government Finance. Tax Bill 101
Deductions That Lower Your Assessed Value
Deductions come off your assessed value before the rate is applied, so they compound with the caps rather than replacing them. You apply through your county auditor’s office, and the deadline is January 15 for the deduction to appear on that year’s tax bill. Filing by January 15, 2026 puts the deduction on the 2025-pay-2026 statement.5Indiana Department of Local Government Finance. Deductions and Credits
Standard and Supplemental Homestead Deductions
Own the home and live in it as your primary residence, and you qualify for a standard homestead deduction equal to the lesser of $45,000 or 60% of the gross assessed value. This is the biggest deduction most homeowners will ever see on their bill.2Indiana Department of Local Government Finance. Property Tax Deductions and Exemptions
The supplemental homestead deduction then applies automatically to what’s left. For taxes due in 2026, it equals 40% of the assessed value remaining after the standard deduction, capped so that the two combined can’t exceed 75% of gross assessed value.6Indiana General Assembly. Indiana Code 6-1.1-12-37.5 – Supplemental Deduction
On a $200,000 home, the standard deduction removes $45,000, leaving $155,000. The supplemental takes 40% of that $155,000, or $62,000. Your net assessed value drops to $93,000, less than half the starting figure. At a rate of $0.709 per $100, tax before the cap runs about $659 instead of $1,418.
Mortgage Deduction
If you carry a mortgage or are buying under contract, you can claim a deduction of up to $3,000, or half the assessed value, or the remaining loan balance, whichever is smallest. Refinancing means you have to refile.2Indiana Department of Local Government Finance. Property Tax Deductions and Exemptions
Over 65 Credit
Homeowners 65 or older can receive a $150 credit applied directly to the tax bill. Your adjusted gross income can’t exceed $60,000 as an individual or $70,000 filing jointly, and you must have owned the property for at least one year.
Disabled Veteran Deductions
Veterans with a service-connected disability rating of at least 10% from the VA can deduct $24,960 from their home’s assessed value. Veterans who are totally disabled, or over 62 with at least a 10% rating, qualify for an additional $14,000 deduction if the home’s assessed value is under $240,000. Meeting both sets of criteria lets you combine the deductions for up to $38,960 off.7Indiana Department of Veterans Affairs. Disabled Veteran Property Tax Deduction
Blind or Disabled Persons Credit
Individuals who are blind or disabled can receive a $125 annual credit against property tax liability.8Indy.gov. Apply for Blind or Disabled Persons Credit Indiana also provides deductions for surviving spouses of veterans and active-duty military. The complete list lives on the DLGF site and at your county auditor’s office.5Indiana Department of Local Government Finance. Deductions and Credits
When Payments Are Due
Indiana property taxes are due twice a year. For 2026 the deadlines are May 10 and November 10.9Indiana Department of Local Government Finance. Property Tax Due Dates You receive a single statement in late March or early April showing both installments; there is no separate fall mailing.
You can pay online through your county treasurer’s portal, by mail, or in person. Many homeowners never touch the bill directly because their lender pays it out of a mortgage escrow account.
What Happens If You Pay Late
Miss the deadline and penalties start. If you pay within 30 days and don’t owe back taxes on the same parcel, the penalty is 5% of the unpaid amount.10Indiana General Assembly. Indiana Code 6-1.1-37-10 – Penalties for Delinquent Taxes Miss the 30-day window, or already owe delinquent taxes from a previous installment, and the penalty jumps to 10%. Each subsequent year taxes remain unpaid, another 10% is added to the outstanding principal.
If taxes stay delinquent past the following year’s spring installment, the property becomes eligible for a tax sale. The county sells a certificate of lien (not the property itself) to a bidder, and the winning bidder can eventually petition the court for a tax deed after a redemption period expires. During redemption you can reclaim your property by paying the delinquent taxes, penalties, and fees through the county auditor. If you’re struggling to pay, calling the county treasurer before the bill goes delinquent gives you far more room than waiting until a sale is on the calendar.
How to Appeal an Assessment You Think Is Too High
If your assessed value looks off, file a Form 130 (Taxpayer’s Notice to Initiate an Appeal) with your local assessing official.11Indiana Department of Local Government Finance. Appeals Property Tax The form asks why the value is wrong and what evidence supports your position. Objective claims, such as a clerical error in square footage, can cover up to three years of assessments on one filing.
The process opens with an informal conference with the local assessor, who may adjust the value on the spot. If that doesn’t resolve it, you can escalate to the county Property Tax Assessment Board of Appeals, then to the Indiana Board of Tax Review, and in rare cases to the Indiana Tax Court.
Filing costs nothing at the initial level and you don’t need a lawyer. The strongest appeals bring objective evidence: three comparable homes down the street that recently sold for $180,000 when yours is assessed at $220,000, or an independent appraisal (typically $300 to $500 for a home) when the potential tax savings justify the cost. Appeals based on a general sense that the value feels high tend to go nowhere.