If you live in Morgan County, Indiana, the tax rates that hit your paycheck and your mailbox are a 2.72 percent local income tax layered on top of Indiana’s 2.95 percent flat state income tax, plus property taxes that vary by taxing district but are capped between 1 and 3 percent of your home’s gross assessed value depending on how the property is used.1Indiana Department of Revenue. Individual Income County Tax Rates by Year2Indiana Department of Revenue. Rates Fees and Penalties Combined, state and local income tax come to 5.67 percent of adjusted gross income for 2026.
The Local Income Tax Rate
Morgan County’s 2.72 percent local income tax is set under Indiana’s county income tax framework in IC 6-3.6 and applies to your adjusted gross income based on where you live on January 1.3Justia. Indiana Code Title 6 Article 3.6 – Local Income Taxes1Indiana Department of Revenue. Individual Income County Tax Rates by Year Residency, not workplace, controls. If you live in Morgan County and commute to Marion or Hendricks County for work, you still pay the Morgan County rate. If you work in Morgan County but live elsewhere, your home county’s rate applies.
Indiana’s state income tax is dropping on a schedule: 2.95 percent for 2026, then 2.90 percent in 2027.2Indiana Department of Revenue. Rates Fees and Penalties Employers withhold both the state and local pieces from wages when they have your county of residence on file. Self-employed residents handle the combined amount through quarterly estimated payments. Local revenue funds public safety, general county operations, and property tax relief.
Why Property Tax Rates Vary Across the County
Morgan County does not have one property tax rate. Your rate is the sum of the rates set by every taxing unit your parcel sits inside: the county, your township, your school corporation, the library district, and any fire or other special districts. Each unit sets its own budget and levy, and the Department of Local Government Finance divides each approved levy by the assessed value in the district to produce a rate per $100 of assessed value.4Indiana Department of Local Government Finance. Citizen’s Guide to Property Tax
Two houses a few miles apart can carry noticeably different rates because they fall under different school corporations or townships. Voter-approved referendums can push rates higher when a school district or other unit needs funding beyond standard levies. You can look up the exact rate for your parcel through the Morgan County Auditor’s online tax search.5Morgan County, Indiana. Tax List – Auditor
The Caps That Limit What You Actually Pay
Indiana’s circuit breaker law puts a hard ceiling on your bill no matter how high the gross rates in your district climb. The cap operates as an automatic credit so property taxes never exceed a fixed percentage of your gross assessed value:6Indiana Department of Local Government Finance. Fact Sheet – Circuit Breaker Caps
- 1 percent for homesteads
- 2 percent for other residential property, agricultural land, and long-term care property
- 3 percent for commercial and industrial real property and for business personal property
You don’t apply for the cap. If the combined district rates would push your bill past the limit, the credit absorbs the excess and the taxing units lose that revenue.7Indiana General Assembly. Indiana Code Title 6 Taxation 6-1.1-20.6-7.5 – Property Tax Credit A homestead assessed at $200,000 will never owe more than $2,000 in annual property taxes, no matter how many levies and referendums stack up locally.
Deductions That Lower Your Taxable Value
Before the rate is applied, deductions reduce the assessed value your tax is calculated against. Your starting point is the gross assessed value on the Form 11 (Notice of Assessment) that the county or township assessor mails each year.8Indiana Department of Local Government Finance. Notice of Assessment of Land and Improvements Form 11
Homestead Standard Deduction
For a primary residence, the homestead deduction removes 60 percent of gross assessed value or $48,000, whichever is less.9City of Indianapolis. Apply for a Homestead Deduction A home assessed at $180,000 drops to $132,000 after the full $48,000 comes off. A home assessed at $70,000 gets the smaller figure, $42,000 (60 percent). You have to file for this with the Morgan County Auditor; it is not applied automatically.10Morgan County, Indiana. Auditor
Over 65 Credit
Starting with taxes due in 2026, Indiana replaced the former Over 65 Deduction with a new Over 65 Credit worth up to $150 off your bill. You must be at least 65 by December 31 of the prior year, own or be buying your home, and meet income limits of $60,000 for single filers or $70,000 for joint filers, based on your federal return from two years prior. Applications go to the county auditor by January 15 of the year the taxes are due. If you were already receiving the old deduction, the county may have switched you over automatically; it’s worth a call to confirm.
Mortgage Deduction
Indiana used to allow a mortgage deduction of up to $3,000 off assessed value. It was fully repealed effective January 1, 2023, and no longer appears on any bill.11Indiana Department of Local Government Finance. Legislative Changes Concerning Mortgage Deduction Repeal Additional deductions may still apply for veterans with disabilities, blind or disabled homeowners, and surviving spouses. The Morgan County Auditor handles all deduction filings and provides the forms.12Morgan County, Indiana. Taxation
When Property Taxes Are Due
Indiana property taxes come due in two equal installments: May 10 and November 10.13Indiana General Assembly. Indiana Code 6-1.1-22-9 – Tax Installment Due Dates If your total annual liability is under $25 and the county has adopted an ordinance allowing it, the full amount may be due in May instead. Payments go to the Morgan County Treasurer, either by mail, in person, or online through LowTaxInfo.com, where convenience fees apply depending on the payment method.14Morgan County, Indiana. Paying Taxes You can verify a posted payment on the Auditor’s online tax list.5Morgan County, Indiana. Tax List – Auditor
Penalties for Paying Late
Miss a deadline and a penalty hits automatically. If you pay in full within 30 days of the due date and have no prior delinquencies on the parcel, the penalty is 5 percent of the unpaid taxes. Past 30 days, or if you already had a delinquent balance from an earlier installment, the penalty is 10 percent.15Indiana General Assembly. Indiana Code Title 6 Taxation 6-1.1-37-10
Each year after the initial delinquency, another 10 percent penalty is added to the remaining unpaid principal on each installment due date. Penalties compound on the original tax only, not on prior penalties, but the balance still grows quickly.15Indiana General Assembly. Indiana Code Title 6 Taxation 6-1.1-37-10 Parcels still carrying a balance from a prior spring installment become eligible for the county’s annual tax sale, where the lien is auctioned. If you fail to redeem the property within the statutory redemption period, you can lose it.16Indiana State Board of Accounts. Taxation, Tax Sale and Redemption, and Personal Property Tax Levy and Sale
Appealing an Assessment You Think Is Too High
If the assessed value on your Form 11 looks wrong, file a Form 130 (Taxpayer’s Notice to Initiate an Appeal) with your local assessing official and explain why.17Indiana Department of Local Government Finance. Appeals Property Tax An informal conference with the assessor comes first. If you reach agreement, the value is adjusted and the matter closes. If not, it moves to the county Property Tax Assessment Board of Appeals, with further review available at the Indiana Board of Tax Review and the Indiana Tax Court. For objective errors like wrong square footage or a misclassified property type, you can file for up to three prior years and request a refund. Recent comparable sales, an independent appraisal, or documentation of property conditions the assessor missed are the strongest evidence.