Indianapolis, Indiana Property Taxes
The median property tax rate in Indianapolis, IN is 1.05%, 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 $237,700, the typical annual property tax bill reaches $2,547, just below the national median of $2,690. Property taxes in Indianapolis are calculated based on the assessed value, which often 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
1.05%
Estimate Property Tax Bill
$2,496
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, 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 1.05%, which is higher than both 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 46259 zip code has the highest median property tax rate of 1.73%, while the 46268 zip code has the lowest median tax rate of 0.71%. Understanding how these cities compare with Indianapolis provides valuable insights into the varying tax landscape across Hendricks County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Indianapolis Tax Rate
1.05%
Average Hendricks County Tax Rate
0.98%
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 |
|---|---|---|---|---|---|
| 46231 | 0.96% | 1.06% | 1.08% | 1.14% | 2.13% |
| 46234 | 0.90% | 0.94% | 0.99% | 1.09% | 1.62% |
| 46259 | 1.73% | 1.73% | 1.73% | 1.73% | 1.73% |
| 46268 | 0.71% | 0.71% | 0.71% | 0.71% | 0.71% |
| 46278 | 0.84% | 0.91% | 0.95% | 0.98% | 1.06% |
Source: Ownwell
Property Tax Assessment Values Across Indianapolis, Indiana
Understanding the difference between "market value" and "assessed value" is crucial for comprehending property taxes in Indianapolis. 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 Hendricks County 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. 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. Being aware of these valuation processes helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. For instance, the highest median tax bill is $5769 in the 46259 zip code, while the lowest is $452 in the 46268 zip code.
Average Indianapolis Assessed Value
$237,700
Average Hendricks County Assessed Value
$256,800
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 |
|---|---|---|---|---|---|
| 46231 | $164,710 | $187,725 | $212,450 | $253,125 | $288,180 |
| 46234 | $184,490 | $210,200 | $241,800 | $283,100 | $335,300 |
| 46259 | $334,000 | $334,000 | $334,000 | $334,000 | $334,000 |
| 46268 | $63,600 | $63,600 | $63,600 | $63,600 | $63,600 |
| 46278 | $260,400 | $342,500 | $468,800 | $662,300 | $830,280 |
Source: Ownwell
Property Tax Bills Across Indianapolis, Indiana
In Indianapolis, located in Hendricks County, property tax bills are calculated based on the assessed value of the property. The assessed value is determined by the county assessor and reflects the property's market value. Homeowners can expect their tax bill to be influenced by various factors, including the property's location, size, and any improvements made. For instance, the median home price in Indianapolis is $237,700, and the property tax rate in this area contributes to varying tax bills. Homeowners in the 25th percentile can expect to pay around $2,139, while those in the 75th percentile might see bills closer to $3,135. The 90th percentile tax bill can reach up to $4,309. In comparison, the national median property tax rate is 0.99%, highlighting how Indianapolis' rates can significantly impact homeowners. The highest median tax bill in the area is $5,769, found in the 46259 zip code, while the lowest is $452 in the 46268 zip code. These variations underscore the importance of understanding local property tax assessments and their implications for homeowners.
Average Indianapolis Tax Bill
$2,547
Average Hendricks County Tax Bill
$2,647
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 |
|---|---|---|---|---|---|
| 46231 | $1,663 | $2,036 | $2,479 | $3,032 | $4,029 |
| 46234 | $1,810 | $2,155 | $2,532 | $3,066 | $4,097 |
| 46259 | $5,769 | $5,769 | $5,769 | $5,769 | $5,769 |
| 46268 | $452 | $452 | $452 | $452 | $452 |
| 46278 | $2,482 | $3,274 | $4,453 | $6,418 | $8,234 |
Source: Ownwell