Indianapolis, Indiana Property Taxes
The median property tax rate in Indianapolis, IN is 0.93%, slightly 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 $253,950, the typical annual property tax bill reaches $2,471, just below 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
0.93%
Estimate Property Tax Bill
$2,362
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 applies the median tax rate in Indianapolis to estimate your property tax bill. This valuable 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 crucial for funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Indianapolis is 0.93%, slightly 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 in Hancock County and the national median. For comparison, the 46236 zip code has the highest median property tax rate of 1.27%, while the 46201 zip code has the lowest median tax rate of 0.74%. Understanding how these areas compare with Indianapolis provides valuable insights into the varying tax landscape across Hancock County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Indianapolis Tax Rate
0.93%
Average Hancock County Tax Rate
0.80%
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 | 0.74% | 0.74% | 0.74% | 0.74% | 0.74% |
| 46229 | 0.68% | 0.82% | 0.93% | 1.01% | 1.13% |
| 46236 | 1.15% | 1.17% | 1.27% | 1.38% | 1.41% |
| 46239 | 0.64% | 0.73% | 0.85% | 0.95% | 1.25% |
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 Hancock 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. Notably, the highest median tax bill in the area is $23,797 in zip code 46236, while the lowest is $707 in zip code 46201.
Property Tax Assessment Values Across Indianapolis, Indiana
Source: Ownwell
$23,100
$1,036,150
$2,049,200
Average Indianapolis Assessed Value
$253,950
Average Hancock County Assessed Value
$247,000
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 | $95,600 | $95,600 | $95,600 | $95,600 | $95,600 |
| 46229 | $174,400 | $207,400 | $253,000 | $296,350 | $361,000 |
| 46236 | $1,068,370 | $1,595,275 | $2,049,200 | $2,701,875 | $3,586,530 |
| 46239 | $217,040 | $241,900 | $312,300 | $588,925 | $789,590 |
Source: Ownwell
Property Tax Bills Across Indianapolis, Indiana
In Indianapolis, located in Hancock County, property tax bills are calculated based on the assessed value of a home. The assessed value is determined by local assessors who evaluate various factors such as the property's location, size, and condition. Once the assessed value is established, the local tax rate is applied to calculate the annual property tax bill. For instance, with a median home price of $253,950, homeowners can expect tax bills that vary significantly. The 25th percentile tax bill is around $1,808, while the 75th percentile reaches $2,912, and the 90th percentile can go up to $3,679. These figures highlight the range of property tax obligations within the area. Homeowners in Indianapolis experience property tax rates that can either be a financial burden or relatively manageable, depending on the assessed value of their property. Compared to the national median property tax rate of 0.99%, Indianapolis offers a diverse range of tax bills, reflecting the varied property values and local economic conditions.
Average Indianapolis Tax Bill
$2,471
Average Hancock County Tax Bill
$2,024
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 | $707 | $707 | $707 | $707 | $707 |
| 46229 | $1,229 | $1,800 | $2,460 | $2,894 | $3,562 |
| 46236 | $13,329 | $18,616 | $23,797 | $34,475 | $49,658 |
| 46239 | $1,483 | $2,062 | $3,084 | $5,106 | $7,662 |
Source: Ownwell