Indianapolis, Indiana Property Taxes
The median property tax rate in Indianapolis, IN is 1.08%, slightly higher than both the national median of 0.99% and the Indiana state median of 0.99%. With the median home value in Indianapolis at $451,400, the typical annual property tax bill reaches $5,069, significantly exceeding the national median of $2,690. Property taxes in Indianapolis are calculated based on the tax assessed value, which typically falls below the market value due to various exemptions like the primary residence and agricultural exemptions. Understanding Indianapolis's property tax system, exploring available exemptions, and identifying opportunities for reductions can lead to significant annual savings. Whether you're in the heart of Indianapolis or another part of the city, understanding the local property tax system will benefit both homeowners and real estate investors.
Last Updated June 14, 2024
Indianapolis, Indiana Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
1.08%
Estimate Property Tax Bill
$4,875
Ownwell’s Indianapolis Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Indianapolis with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Indianapolis to estimate your property tax bill. This insightful tool helps you understand potential tax liabilities. If you’re interested in seeing trends on a neighborhood level, scroll down to find more localized information. Your property’s assessed value is the value assigned by the county for property tax calculations, accounting for any exemptions that may apply.
Property Tax Rates Across Indianapolis, Indiana
Property taxes in Indianapolis, Indiana, are vital in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Indianapolis is 1.08%, higher than the Indiana state median and the U.S. national median of 0.99%. Local government entities within Indianapolis set these rates annually, and they can vary significantly across different neighborhoods. Each year, Indianapolis estimates its required budget to maintain services for the upcoming fiscal year, then divides this budget by the total value of all taxable property within the jurisdiction to calculate the property tax rate. While tax rates and budgets are influenced by laws and voter input, this calculation forms the basis of setting property tax rates. The data below compares Indianapolis's effective property tax rate to other counties in Indiana and the national median. For comparison, the 46280 zip code has the highest median property tax rate of 2.06%, while the 46250 zip code has the lowest median tax rate of 0.89%. Understanding how these cities compare with Indianapolis provides valuable insights into the varying tax landscape across Hamilton County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Indianapolis Tax Rate
1.08%
Average Hamilton County Tax Rate
1.05%
Average Indiana Tax Rate
0.99%
Average United States Tax Rate
0.99%
Property Tax Rates Across Indianapolis, Indiana
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 46236 | 0.80% | 0.94% | 1.17% | 1.60% | 1.86% |
| 46240 | 1.09% | 1.19% | 1.67% | 1.93% | 1.93% |
| 46250 | 0.74% | 0.84% | 0.89% | 0.94% | 1.99% |
| 46256 | 1.03% | 1.05% | 1.09% | 1.13% | 1.16% |
| 46260 | 1.05% | 1.07% | 1.08% | 1.13% | 1.53% |
| 46268 | 0.91% | 0.94% | 1.00% | 1.07% | 2.02% |
| 46280 | 2.06% | 2.06% | 2.06% | 2.06% | 2.06% |
Source: Ownwell
Property Tax Assessment Values Across Indianapolis, Indiana
In Indianapolis, Indiana, understanding the difference between "market value" and "assessed value" is crucial for comprehending property taxes. The market value is the price a willing buyer would pay a willing seller in an open and competitive market, influenced by factors like location, property condition, and economic trends. This value is estimated by the Hamilton County Assessor for tax purposes. In contrast, the assessed value is the market value minus any applicable exemptions or limits based on local laws and available programs. The assessed value is then used to calculate your property taxes by multiplying it by the combined tax rates of all relevant taxing entities. In Indianapolis, assessment notices are typically mailed out in the spring, usually by mid-April. These notices provide homeowners with both the market and assessed values, along with an estimate of the annual property tax bill. By understanding the distinction between these valuation concepts, property owners can better navigate their tax responsibilities and comprehend how their property taxes are determined. The highest median tax bill in Indianapolis is $40,540 in zip code 46236, while the lowest is $687 in zip code 46280. Being aware of these valuation processes helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden.
Property Tax Assessment Values Across Indianapolis, Indiana
Source: Ownwell
$33,300
$1,087,450
$2,141,600
Average Indianapolis Assessed Value
$451,400
Average Hamilton County Assessed Value
$355,800
Average Indiana Assessed Value
$170,700
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Indianapolis, Indiana
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 46236 | $1,582,880 | $1,792,400 | $2,141,600 | $2,807,800 | $3,207,520 |
| 46240 | $189,060 | $195,900 | $267,900 | $367,900 | $427,300 |
| 46250 | $132,150 | $141,900 | $152,650 | $155,000 | $167,690 |
| 46256 | $327,300 | $414,400 | $550,700 | $836,200 | $1,148,800 |
| 46260 | $275,840 | $352,800 | $413,200 | $448,400 | $494,000 |
| 46268 | $132,060 | $177,950 | $240,150 | $307,050 | $366,220 |
| 46280 | $20,820 | $25,500 | $33,300 | $143,700 | $209,940 |
Source: Ownwell
Property Tax Bills Across Indianapolis, Indiana
In Indianapolis, property tax bills are determined by assessing the market value of a home and applying the local tax rate. The assessed value is calculated based on the market value, which reflects the price a property would likely sell for under normal conditions. Several factors influence this assessment, including the property's size, location, and condition. In Hamilton County, the tax rate is applied to the assessed value to calculate the annual tax bill. Homeowners in Indianapolis experience a range of property tax bills. For instance, the 25th percentile tax bill is approximately $2,811, while the 75th percentile reaches around $7,906. The highest median tax bill in the county is found in the 46236 zip code, at $40,540, whereas the lowest median tax bill, $687, is in the 46280 zip code. These tax bills can significantly impact homeowners, influencing their financial planning and housing affordability. Compared to the national median property tax rate of 0.99%, Indianapolis offers a diverse range of tax liabilities depending on the property's location and assessed value.
Average Indianapolis Tax Bill
$5,069
Average Hamilton County Tax Bill
$3,915
Average Indiana Tax Bill
$1,691
Average United States Tax Bill
$2,690
Property Tax Bills Across Indianapolis, Indiana
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 46236 | $16,357 | $25,426 | $40,540 | $41,976 | $42,837 |
| 46240 | $3,363 | $3,647 | $3,808 | $3,993 | $4,900 |
| 46250 | $1,040 | $1,229 | $1,362 | $1,632 | $2,879 |
| 46256 | $3,450 | $4,616 | $6,158 | $9,572 | $12,976 |
| 46260 | $3,672 | $3,757 | $4,479 | $4,817 | $5,433 |
| 46268 | $1,316 | $2,115 | $2,332 | $3,350 | $3,721 |
| 46280 | $429 | $526 | $687 | $2,964 | $4,330 |
Source: Ownwell