If you run a business in Indianapolis, the Marion County personal property tax works like this for 2026: you self-report the tangible assets you use in the business, but you only owe tax if the total acquisition cost of your personal property in the county is $2,000,000 or more. That threshold jumped from $80,000 under Senate Bill 1, signed in April 2025, so most small and mid-sized businesses in Marion County are now fully exempt.1Indiana General Assembly. Indiana Code 6-1.1-3-7.2 – Exemption for Certain Business Personal Property; Information Required on Return Exempt or not, you still have to file a return by May 15, 2026.
Who Still Owes and Who’s Exempt
The $2,000,000 threshold is measured by what you originally paid for your assets, not their current depreciated value, and it applies per county. A business with locations in multiple Indiana counties checks the threshold separately in each one. A restaurant with $300,000 in kitchen equipment, a law firm with $50,000 in office furniture and technology, and a small manufacturer with $1.5 million in machinery all fall under the exemption.
Qualifying for the exemption does not excuse you from filing. You still submit a return by the deadline and check the box claiming the exemption on the form. Skipping the filing entirely triggers a $25 penalty.2Indiana General Assembly. Indiana Code 6-1.1-37-7 – Personal Property Return; Various Violations and Penalties
A few narrower exemptions exist beyond the threshold. Property that a qualifying nonprofit actually occupies and uses for educational, scientific, religious, or charitable purposes can be exempt under Indiana Code 6-1.1-10-16; holding nonprofit status alone is not enough. Air pollution control equipment at a private industrial facility can also qualify when it is designed to prevent air contamination, is not primarily used in production, and was acquired to comply with environmental rules.3Indiana General Assembly. Indiana Code 6-1.1-10-12 – Stationary or Unlicensed Mobile Air Pollution Control Systems
What You Report
Taxable personal property covers the tangible things you use to run the business: manufacturing equipment, tools, office furniture, computers, servers, printers, shelving, and interior and exterior signage. If it sits in your office, warehouse, or shop and helps you earn income, it almost certainly counts.
Computer application software is the exception most filers get wrong. Software is classified as an intangible asset and is not subject to personal property tax, even though the hardware it runs on is. A large software license line on your books does not belong on the return.
How the Bill Gets Calculated
Indiana does not tax personal property at its original purchase price. Assets are grouped into four pools based on federal tax life, then a true tax value percentage is applied that decreases as the property ages:
- Pool 1: federal tax life of 1 to 4 years
- Pool 2: federal tax life of 5 to 8 years
- Pool 3: federal tax life of 9 to 12 years
- Pool 4: federal tax life of 13 years or longer
Within each pool, you add up the acquisition costs of all assets purchased in the same fiscal year and apply the state’s percentage for that pool and age. Acquisition cost means what you actually paid, including freight and installation. The resulting figure is the assessed value, which is then multiplied by the local tax rate to produce your bill.
For property placed in service before January 1, 2025, a 30% floor applies: assessed value cannot drop below 30% of original cost no matter how old the equipment is. SB 1 eliminated that floor for property placed in service after January 1, 2025, so newer equipment can depreciate all the way down over time.4Department of Local Government Finance. Personal Property
Which Forms to File
Marion County uses the standard Indiana forms from the Department of Local Government Finance:
- Form 103-Short, for businesses with assessed personal property under $150,000 that aren’t claiming special adjustments
- Form 103-Long, required for manufacturers or processors, businesses with personal property exceeding $150,000 in assessed value, or anyone claiming special adjustments like abnormal obsolescence
- Form 104, a summary form that must accompany every Form 103 filing
Forms are available on the state’s personal property forms page.5Department of Local Government Finance. Personal Property Forms
Each line item on Form 103 needs the acquisition cost and year of purchase. Federal tax depreciation schedules make a useful cross-reference for confirming asset ages and cost bases.
Leased Equipment
Leased equipment goes on separate forms filed alongside the standard 103 and 104. Form 103-N is the lessee’s form, for property you hold or use but don’t own. Form 103-O is the lessor’s form, for property you own but someone else possesses. Include serial numbers, model numbers, lease dates, cost, and contact information for the other party. The owner is ultimately responsible for the tax, but both sides report the arrangement so the assessor can match records.
Filing Online
Indiana’s Personal Property Online Portal (PPOP-IN) accepts Forms 102, 103-Short, 103-Long, 103-N, 103-O, 104, and 106, along with supporting documents, and lets you review prior filings.6PPOP-IN. Indiana Personal Property Online Portal Paper forms can still be mailed to the Marion County Assessor’s office. Either way, the return must be postmarked or submitted online by the deadline.
Filing Deadline and Late Penalties
All personal property tax returns in Marion County must be postmarked or filed online no later than May 15, 2026.7indy.gov. Business Personal Property Taxes
Miss that date and the penalties escalate. The initial late fee is a flat $25 added to your next tax installment. If 30 days pass without a filing, the penalty grows to 10% of the taxes owed (capped at $10,000) when you file on or before November 15, or 20% (capped at $50,000) when you file after November 15. Undervaluing your property by more than 5% below the correct assessed value triggers an additional 20% penalty on the extra taxes owed.2Indiana General Assembly. Indiana Code 6-1.1-37-7 – Personal Property Return; Various Violations and Penalties
The penalties stack. A late filing that is also incomplete draws $25 for lateness plus $25 for the incomplete return, and a very late incomplete filing adds the percentage penalty on top. Filing something imperfect by May 15 almost always beats filing nothing.
Payment Due Dates
Once the county processes your filing, the Marion County Treasurer mails a tax bill based on your assessed values and the local rate. Property taxes in Marion County are due in two installments. For 2026:
- First installment: May 10, 2026
- Second installment: November 10, 2026
You can also pay the full year on the first due date.8Indiana Department of Local Government Finance. Property Tax Due Dates Payment can be made through the treasurer’s online system, by mail with the coupon from your statement, or in person. Statements usually go out in the spring with coupons for both installments.9indy.gov. Find Property Tax Due Dates
Appealing an Assessment
If the county’s assessment looks wrong, file a Form 130 (Taxpayer’s Notice to Initiate an Appeal) with the local assessing official.10Department of Local Government Finance. Appeals Property Tax Objective appeals cover straightforward errors like data entry mistakes, math errors, or equipment counted twice. Subjective appeals involve judgment calls, such as arguing that equipment condition or market conditions put the property’s value below the depreciation tables.11indy.gov. The Property Assessment Appeals Process
Bring evidence to the preliminary conference. Photographs of equipment condition, independent appraisals, and comparable sales data all carry weight. Objective claims can reach back up to three years, though you’ll need a separate refund claim form to recover money for prior years. Appeals that pair clear documentation with a specific dollar figure you believe is correct go further than general complaints that the bill is too high.