Your Indiana property tax bill for 2026 starts with the assessed value of your home, subtracts any deductions you’ve claimed, and multiplies the remainder by your local tax rate. A homestead’s total bill is then capped at 1% of the gross assessed value under the state constitution, and a new supplemental homestead credit signed into law in 2025 will knock another 10% (up to $300) off most homeowners’ bills for the 2026 tax year.
How Your Bill Is Calculated
Every bill begins with the gross assessed value, which is the county or township assessor’s estimate of what your property would sell for. You’ll find that number on the Form 11 notice mailed each year.1Department of Local Government Finance. Notice of Assessment of Land and Improvements (Form 11)
Deductions you’ve applied for come off next. What’s left is the net assessed value, and that’s the figure your tax rate is actually applied to. The rate is expressed in dollars per $100 of net assessed value and combines the budgets of every taxing unit covering your address: county, city or town, school district, township, library, and any special districts. A rate of $2.50 against a net assessed value of $95,000 produces a pre-cap bill of $2,375. The county auditor then compares that number to the constitutional cap for your property type and credits back any excess automatically.
The 1%, 2%, and 3% Caps
Indiana’s constitution ceilings your property tax at a fixed percentage of gross assessed value. The credit that enforces this is called the circuit breaker.2Department of Local Government Finance. Circuit Breaker Overview
- Homesteads: 1% of gross assessed value
- Other residential and agricultural land: 2%
- Commercial, industrial, and personal property: 3%
A home with a gross assessed value of $200,000 cannot be billed more than $2,000 in total property tax, no matter what the combined local rates would otherwise produce. You don’t apply for the credit. The auditor calculates it on every qualifying parcel.
Deductions Worth Claiming
Deductions cut your assessed value before the rate is applied, so they can lower your bill even before the circuit breaker comes into play. Most run through the county auditor’s office, and applications filed on or before January 15 apply to that year’s bill.3Department of Local Government Finance. Deductions and Credits Once approved, you don’t reapply unless you sell or change title.
Standard Homestead Deduction
The core homeowner deduction cuts your assessed value by 60% or $48,000, whichever is smaller.4Indiana General Assembly. Indiana Code 6-1.1-12-37 – Standard Deduction for Homesteads The property has to be your principal Indiana residence, and you have to own it or be buying it under a recorded contract. You’ll need your Social Security number and the parcel number when you file.
The cap used to be $45,000. The legislature raised it by $3,000 when it repealed the old mortgage deduction effective January 1, 2023. If you were getting a mortgage deduction before, it’s gone; the larger homestead cap replaced it.
Supplemental Homestead Deduction
Once the standard deduction is subtracted, a second automatic reduction chips further at what’s left. For 2026, the supplemental reduces the first $600,000 of remaining assessed value by 35%, and any amount above $600,000 by 25%.5Indiana General Assembly. Indiana Code 6-1.1-12-37.5 – Supplemental Deduction for Homesteads You don’t file for it separately. If you have the standard homestead, the supplemental is calculated for you.
Those percentages were temporarily higher in 2024 (40%) and 2025 (37.5%) under House Enrolled Act 1499 (2023). Those boosts have expired for 2026, so the rates are back to the standard 35% and 25%.
Over-65 Deduction and Credit
Indiana runs two separate senior benefits with different income limits. The over-65 deduction reduces your assessed value if adjusted gross income is $30,000 or less for a single filer, $40,000 or less on a joint return. Those base amounts are adjusted upward each year by the Social Security cost-of-living increase starting from the 2023 assessment date. You also need to have owned the property for at least a year, and the assessed value can’t exceed $240,000.6Indiana General Assembly. Indiana Code 6-1.1-12-9 – Deduction for Person 65 or Older
The over-65 credit is separate, with higher income ceilings of $60,000 for single filers and $70,000 for joint filers.7indy.gov. Apply for Over 65 Property Tax Credit The credit reduces the tax bill directly rather than the assessed value. You may qualify for both if your income sits within the lower threshold. File either one at the county auditor’s office.
Disabled Veteran Deduction
Veterans with a service-connected disability rating of at least 10% from the U.S. Department of Veterans Affairs can deduct up to $24,960 from the assessed value of their primary Indiana residence.8Indiana Department of Veterans Affairs. Disabled Veteran Property Tax Deduction You’ll need VA documentation showing the rating and proof of honorable discharge. Surviving spouses of veterans who would have qualified may also be eligible.
What’s New for 2026
Senate Enrolled Act 1 (2025) adds a new supplemental homestead credit for the 2026 tax year. It equals 10% of your tax bill, capped at $300, and applies after the circuit breaker cap. Homestead owners receive it automatically. The estimated statewide effect is a $443.8 million reduction in homestead liability.
SEA 1 also sunsets the state’s current property tax relief provisions in 2027, which means the framework will be rewritten in the next legislative session. Watch for further changes to deduction amounts and cap calculations starting in 2027.
Payment Deadlines and Late Penalties
Property tax is billed in two installments. For 2026, the due dates are May 10 and November 10. When either date falls on a weekend or holiday, payment is due the next business day.9Indiana Department of Local Government Finance. Property Tax Due Dates
Miss a deadline and the penalty is 5% on the unpaid amount if you pay within 30 days and have no back taxes on the property. Wait longer than 30 days and it becomes 10%.9Indiana Department of Local Government Finance. Property Tax Due Dates The 5% grace window only applies if the parcel is otherwise current. If you already have delinquent taxes on the property, the full 10% hits immediately.
Most counties offer online portals that take credit cards and electronic checks, with convenience fees typically running from about $1 up to 2.5% of the payment. A mailed check or money order works if the envelope is postmarked by the due date. Many county treasurers also accept in-person payments at their office or through partner banks.
Appealing Your Assessment
If the value on your Form 11 looks too high, you have 45 days from the date the notice was mailed to file an appeal. Use Form 130 and file it with the county assessor. Miss that window and you’re generally waiting for the next assessment cycle.
The appeal goes to the county Property Tax Assessment Board of Appeals (PTABOA). The board won’t cut your assessment just because you disagree with it; you have to bring evidence. Useful evidence includes a recent independent appraisal, photos of condition problems the assessor didn’t account for, and sales data from comparable neighboring properties.10indy.gov. The Property Assessment Appeals Process You can also challenge the market adjustment factors the assessor used or point out that the property’s characteristics were recorded incorrectly. The strongest residential cases tend to rest on a recent appraisal that comes in well below the assessed value.
If You Don’t Pay
Unpaid property taxes start a process that can end in losing the home. Once taxes are delinquent, the county can list the property for a tax sale, where investors bid on the right to collect the unpaid taxes plus interest.
After a sale, the original owner generally has one year to redeem the property by paying everything owed plus penalties and costs.11Indiana General Assembly. Indiana Code 6-1.1-25-4 – Period for Redemption When a government purchasing agency buys the lien, that period shrinks to 120 days. Properties on the county’s vacant and abandoned list get no redemption period at all. If redemption passes without payment, the buyer can petition for a tax deed and take ownership.
The county treasurer can sometimes arrange a payment plan before a sale is scheduled. If you’re falling behind, calling the treasurer’s office early is the most practical way to keep the property.