Indianapolis, Indiana Property Taxes
The median property tax rate in Indianapolis, IN is 0.65%, notably lower than both the national median of 0.99% and the Indiana state median of 0.99%. With the median home value in Indianapolis at $243,200, the typical annual property tax bill comes to $1,541, which is significantly less than 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 those for primary residences and agricultural properties. Understanding Indianapolis's property tax system, exploring available exemptions, and identifying opportunities for reductions can lead to substantial annual savings. Whether you're in the heart of Indianapolis or another part of the city, grasping 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 enables homeowners, real estate investors, and potential buyers to estimate their annual property taxes in Indianapolis with ease. 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 helps you understand potential tax liabilities. For those interested in more detailed insights, scroll down to explore trends at the neighborhood level. Your property’s assessed value, determined by Shelby County, is used for property tax calculations and may include 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 0.65%, which is lower 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 within Shelby County and the national median. For comparison, the 46201 zip code has the highest median property tax rate of 1.31%, while the 46259 zip code has the lowest median tax rate of 0.65%. Understanding how these neighborhoods compare with Indianapolis provides valuable insights into the varying tax landscape across Shelby County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Indianapolis Tax Rate
0.65%
Average Shelby County Tax Rate
0.85%
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 | 1.31% | 1.31% | 1.31% | 1.31% | 1.31% |
| 46202 | 1.24% | 1.24% | 1.24% | 1.24% | 1.24% |
| 46227 | 1.26% | 1.26% | 1.26% | 1.26% | 1.26% |
| 46259 | 0.54% | 0.61% | 0.65% | 0.77% | 1.22% |
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 Shelby 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. Being aware of these valuation processes in Indianapolis helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. The highest median tax bill in the area is $1,554 in the 46259 zip code, while the lowest is $209 in the 46201 zip code.
Average Indianapolis Assessed Value
$243,200
Average Shelby County Assessed Value
$152,000
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 | $16,000 | $16,000 | $16,000 | $16,000 | $16,000 |
| 46202 | $31,100 | $31,100 | $31,100 | $31,100 | $31,100 |
| 46227 | $88,700 | $88,700 | $88,700 | $88,700 | $88,700 |
| 46259 | $112,710 | $204,950 | $244,250 | $288,900 | $367,290 |
Source: Ownwell
Property Tax Bills Across Indianapolis, Indiana
In Indianapolis, Shelby County, property tax bills are calculated based on the assessed value of the property. The assessed value is determined by the local assessor's office and reflects the market value of the property. This assessed value is then multiplied by the local property tax rate to determine the annual tax bill. Various factors such as property location, size, and improvements can influence the assessed value. Homeowners in Indianapolis can expect their tax bills to vary significantly. For instance, the median home price is $243,200, and tax bills can range widely. At the 25th percentile, homeowners might see a tax bill of around $1,214, while those at the 75th percentile could pay approximately $2,013. The highest median tax bill in the area is $1,554, found in the 46259 zip code, whereas the lowest median tax bill is $209 in the 46201 zip code. These variations can significantly impact homeowners' annual expenses, making it crucial to understand how property taxes are calculated and assessed.
Average Indianapolis Tax Bill
$1,541
Average Shelby County Tax Bill
$1,312
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 | $209 | $209 | $209 | $209 | $209 |
| 46202 | $385 | $385 | $385 | $385 | $385 |
| 46227 | $1,120 | $1,120 | $1,120 | $1,120 | $1,120 |
| 46259 | $772 | $1,247 | $1,554 | $2,028 | $2,777 |
Source: Ownwell