Indiana's average effective property tax rate is commonly cited around 0.74%–0.76% of assessed home value (Tax Foundation puts it at 0.76% on owner-occupied housing value; SmartAsset and PropertyTaxByState.com cite ~0.74%). Some sources (TaxByCounty) report a lower 0.67% figure depending on methodology. Regardless of exact source, Indiana sits meaningfully below the national average — roughly 15-25% lower than the ~0.89%-0.99% national average commonly cited. There is significant county-level variation: county effective rates and bills range widely, with urban/industrial counties like Lake County running far higher than rural counties like Clay County. 2025 property tax reform (Senate Enrolled Act 1, effective for 2026 bills) is expected to lower bills for roughly two-thirds of Indiana homeowners.
Example: Indiana's median annual property tax bill is approximately $1,964 (vs. a national median around $2,400) according to Ownwell's 2026 property tax trends data. County bills vary enormously — from as low as about $360/year in Clay County to as high as roughly $5,774/year in Lake County. On a median-valued Indiana home (~$201,600), the effective annual tax works out to roughly $1,300-$1,500/year at typical effective rates.
Indiana passed a major property tax overhaul in 2025 (Senate Enrolled Act 1 / SEA 1) that fundamentally restructures deductions and credits starting with property tax bills issued in 2026, and it is projected to save Indiana homeowners about $1.3 billion by 2028. Because the law phases in new percentages and phases out old dollar caps year by year through 2030-2031, and because a separate veteran-benefits law (HEA 1210) took effect in March 2026, homeowners should verify their specific deduction/credit amounts directly with their county auditor or the Indiana Department of Local Government Finance (DLGF) rather than relying on a single blanket figure, since multiple secondary sources report slightly different percentages for the same transition year.
Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.