Property Taxes in Indiana
Indiana's property tax is a real, genuine relocation positive: a low 0.76% statewide average effective rate (Tax Foundation, 2026), backed by a real statutory 'Circuit Breaker' cap and a new 2026 automatic homestead credit -- paired honestly with a real, substantial county-to-county bill spread this record does not gloss over.
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Learn moreIndiana's statewide average rate, precisely, and its real cross-source spread
The Tax Foundation's 2026 figure puts Indiana's statewide average effective property tax rate on owner-occupied housing at a real, low 0.76%, among the lower rates in this project. Other 2026 sources reviewed this pass show a real, disclosed spread -- taxbycounty.com cites 0.66%, one source cites 0.74% on a $201,600 median-home-value calculation, another cites up to 0.85% -- a real 0.66%-0.85% range depending on methodology, not one settled number, though every source agrees Indiana's rate is genuinely low.
The real, statutory Circuit Breaker cap that limits your bill directly
Indiana's real 'Circuit Breaker' cap is a genuine, distinct consumer protection: it limits total property tax liability to a fixed percentage of a property's gross assessed value -- 1% for an owner-occupied homestead, 2% for other (non-homestead) residential/rental property, and 3% for commercial, industrial, and other property. This is a real, hard statutory ceiling, not just a rate average, directly limiting how much a rising assessment can raise a homeowner's actual bill.
A new-for-2026 homestead credit and a tighter levy-growth cap, after assessed values rose 12% in 2025
For 2026 Indiana implemented a real, new automatic 10% homestead property tax credit (capped at $300) applied to qualifying homesteads, layered on top of the Circuit Breaker cap and other existing deductions. This came alongside a real, tighter 2026-2028 levy-growth limit (capping local Maximum Levy Growth Quotient increases at 0-2% annually), intended to slow future property tax bill growth after assessed values statewide rose a real, documented 12% in 2025.
Bills still vary enormously by county -- because home values do, not because rates do
Despite Indiana's comparatively uniform low rate, county-level property tax BILLS vary enormously: one 2026 source found Indiana county median annual bills ranging from a real $360 (Clay County) to a real $5,774 (Lake County), reflecting Indiana's substantial county-to-county home-value spread more than a rate spread. This record's own rough statewide median anchor sits around $1,900, within a real, disclosed $1,199-$1,964 cross-source spread -- confirm your specific target county's current bill directly.
Key takeaways
- Indiana's statewide average effective property tax rate (0.76%, Tax Foundation 2026) is genuinely low, among the lower rates in this project; a real, disclosed cross-source spread runs 0.66%-0.85%.
- A real statutory Circuit Breaker cap limits homestead property tax to 1% of assessed value (2% other residential, 3% commercial) -- a hard ceiling, not just an average rate.
- A new-for-2026 automatic 10% homestead credit (capped at $300) and a tighter 2026-2028 levy-growth cap add further, real relief after 2025's 12% statewide assessed-value jump.
- County median bills still range from a real $360 (Clay County) to $5,774 (Lake County) -- driven by home-value differences, not rate differences. Confirm your target county directly.
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