Indianapolis, Indiana Property Taxes
The median property tax rate in Indianapolis, IN is 1.09%, 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 $291,700, the typical annual property tax bill reaches $3,519, surpassing 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
$2,500,000
$5,000,000
Average Tax Rate
0.99%
Estimate Property Tax Bill
$1,980
Ownwell’s Indianapolis Property Tax Bill Calculator assists homeowners, real estate investors, and potential buyers in estimating their annual property taxes in Indianapolis with just two data points. By entering your property's estimated assessed value, the calculator uses the median tax rate in Indianapolis to provide an estimate of your property tax bill. This valuable tool offers insights into potential tax liabilities. For those interested in neighborhood-specific trends, additional localized information is available below. Your property’s assessed value is determined by Johnson County for tax purposes, taking into account any applicable exemptions.
Property Tax Rates Across Indianapolis, Indiana
Property taxes in Indianapolis, Indiana, play a crucial role in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Indianapolis is 1.09%, which is higher than 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 areas in Johnson County and the national median. For comparison, the 46204 zip code has the highest median property tax rate of 2.26%, while the 46259 zip code has the lowest median tax rate of 1.09%. Understanding how these areas compare with Indianapolis provides valuable insights into the varying tax landscape across Johnson County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Indianapolis Tax Rate
1.09%
Average Johnson County Tax Rate
0.94%
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 |
|---|---|---|---|---|---|
| 46201 | 2.05% | 2.07% | 2.11% | 2.11% | 2.11% |
| 46204 | 2.14% | 2.19% | 2.26% | 2.34% | 2.39% |
| 46227 | 1.93% | 1.93% | 1.93% | 1.93% | 1.93% |
| 46259 | 0.89% | 1.00% | 1.09% | 1.22% | 1.99% |
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 county's appraisal district 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. 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. Being aware of these valuation processes in Indianapolis helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. In Indianapolis, the highest median tax bill is $5,606 in the 46227 zip code, while the lowest median tax bill is $504 in the 46201 zip code. The median home price in the area is $291,700, with tax bills ranging from $2,311 at the 25th percentile to $6,750 at the 90th percentile.
Average Indianapolis Assessed Value
$291,700
Average Johnson County Assessed Value
$236,500
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 |
|---|---|---|---|---|---|
| 46201 | $11,580 | $16,200 | $23,900 | $38,200 | $46,780 |
| 46204 | $13,880 | $19,100 | $27,800 | $36,500 | $41,720 |
| 46227 | $290,400 | $290,400 | $290,400 | $290,400 | $290,400 |
| 46259 | $141,780 | $207,050 | $300,800 | $442,300 | $597,350 |
Source: Ownwell
Property Tax Bills Across Indianapolis, Indiana
In Indianapolis, located in Johnson County, property tax bills are calculated based on the assessed value of a property. The assessed value is determined by the county assessor and reflects the market value of the property. Once the assessed value is established, various factors such as local tax rates and any applicable exemptions are taken into account to determine the final tax bill. For homeowners in Indianapolis, property tax bills can vary significantly. For instance, the median home price is $291,700, and the tax bill at the 25th percentile is $2,311, while at the 75th percentile, it rises to $5,174. The highest median tax bill in the area is found in zip code 46227, amounting to $5,606, whereas the lowest is in zip code 46201 at just $504. These variations can have a substantial impact on homeowners, influencing their annual budgets and long-term financial planning. Compared to the national median property tax rate of 0.99%, these figures highlight the importance of understanding local tax dynamics.
Average Indianapolis Tax Bill
$3,519
Average Johnson County Tax Bill
$2,401
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 |
|---|---|---|---|---|---|
| 46201 | $244 | $342 | $504 | $786 | $955 |
| 46204 | $307 | $438 | $656 | $874 | $1,005 |
| 46227 | $5,606 | $5,606 | $5,606 | $5,606 | $5,606 |
| 46259 | $1,352 | $2,408 | $3,608 | $5,187 | $6,789 |
Source: Ownwell