Short answer: Indianapolis property tax depends on the taxing district, but on a home you live in Indiana caps the bill at 1% of assessed value (2% for rentals), and most Indianapolis homeowners land right at that cap. For 2026, the new homestead credit then takes 10% off the bill, up to $300. Type an address below to see its district, its rate and a realistic yearly bill.
Property tax is the line on the monthly payment people forget to ask about, right up until the escrow statement shows up like a surprise sequel. Type an address anywhere in Marion, Hamilton, Boone, Hendricks, Hancock or Johnson County and I'll show you its taxing district, its 2026 rate and a realistic yearly bill.
2026 bills
The short version
Cap on a home you live in1%
Cap on a rental2%
Percent of assessed value, before the new homestead credit of up to $300. Most Indianapolis homeowners land right at the 1% cap.
Estimate using the value as the assessed value and the 2026 certified rate from Indiana's Department of Local Government Finance. Your actual bill depends on the assessor's value, your deductions and any special assessments.
How it works
Indiana property tax, in four steps.
Start with the assessed value. The county assessor sets it each year, usually close to market value.
Take off your deductions. If it's your primary home, the standard homestead deduction ($48,000 on 2026 bills) comes off first, then a supplemental deduction (40% of what's left on 2026 bills). Veterans' deductions can stack on top.
Multiply by your district's rate. Rates are per $100 of value and cover the city, township, schools, library and other local units for that spot.
Apply the cap and credit. A home you live in can't be billed more than 1% of its assessed value (2% for rentals). Then the new homestead credit takes off 10% of the bill, up to $300.
The deductions are changing every year through 2031
Indiana's 2025 property tax law (Senate Enrolled Act 1) phases out the flat standard deduction and grows the percentage-based one. For most Indianapolis homes the 1% cap still decides the bill, so the effect is small; it matters more in lower-rate areas like rural Hamilton, Boone and Hendricks townships. Bill year is the year you pay; each bill uses the prior year's assessment. Source: Indiana DLGF guidance on SEA 1, checked .
Bill year
Standard deduction
Supplemental deduction
2026
$48,000
40%
2027
$40,000
46%
2028
$30,000
52%
2029
$20,000
57%
2030
$10,000
62%
2031
None
66.7%
Every district
2026 rates by district.
Rates are dollars per $100 of assessed value, from the state's 2026 certified rates. The two estimate columns show the yearly bill on a $300,000 home, so you can compare places side by side. Notice how much the 1% cap evens things out for homeowners.
Source: Indiana DLGF, 2026 Certified Tax Rates by District. Checked October 13, 2026. Small special districts (conservancy, sewer-exempt, TIF and phase-in areas) are left out, and some places split further by fire or library district, so treat these as close estimates. Your tax bill lists your exact district.
Before and after you buy
Things I tell every buyer.
File the homestead deduction
It isn't automatic. After closing, make sure your homestead deduction is filed with the county auditor. Your title company usually hands you the form at the closing table. Skip it and your own home gets taxed like a rental, with no deductions and the 2% cap.
The first bill is the seller's
Indiana bills a year behind, so your first bills reflect the seller's assessed value and deductions. If they were a landlord or the house was just built, budget for the first year to look different.
New construction jumps
A new house may be assessed as a lot for its first bill. Once the house is on the books, the bill catches up. Your lender's escrow will too, sometimes with a shortage notice.
Check the assessed value
If the county's value looks high compared with what you paid, you can appeal. There are deadlines, so open the assessment notice when it comes instead of tossing it with the takeout menus.
Property tax questions
What people ask me most.
What is the property tax rate in Indianapolis?
It depends on the taxing district. In 2026, most of Indianapolis falls between about $2.36 and $2.73 per $100 of assessed value, and excluded cities like Beech Grove run higher. For a home you live in, though, Indiana's 1% cap usually decides the bill, so most Indianapolis homeowners pay close to 1% of the assessed value, minus the homestead credit.
What is the property tax rate in Carmel and Fishers?
In 2026, Carmel (Clay Township) is $2.0167 per $100 of assessed value and Fishers is $2.1994 in Delaware Township and $2.1684 in Fall Creek Township. Homesteads in both usually land near the 1% cap.
How is Indiana property tax calculated on a home I live in?
Start with the assessed value. For 2026 bills, subtract the standard homestead deduction ($48,000), then a supplemental deduction of 40% of what's left. For 2027 bills those become $40,000 and 46%. Multiply by the district rate, cap the result at 1% of the assessed value, and subtract the homestead credit (10% of the bill, up to $300).
Are rental properties taxed differently in Indiana?
Yes. Rentals and other non-homestead homes don't get the homestead deductions or credit, and their bill is capped at 2% of assessed value instead of 1%. In Marion County most districts hit that 2% cap.
Why is my first property tax bill different after buying?
Indiana bills a year behind, so your first bills reflect the previous owner's assessed value and deductions. Make sure your homestead deduction is filed with the county auditor after closing so it applies going forward.
Are there property tax credits for seniors or disabled homeowners in Indiana?
Yes. Starting with 2026 bills, homeowners 65 or older with income of $60,000 or less ($70,000 filing jointly) can get a credit of up to $150, and blind or disabled homeowners can get up to $125. Unlike the homestead credit, you have to apply with the county auditor, by January 15 for the following year's bill.
Now see the whole payment.
Property tax is one piece. The calculator adds this week's rates, insurance and mortgage insurance for the full monthly number.