The one rule that matters most: the 1% cap
Indiana's constitution caps property tax bills at a share of a property's gross assessed value: 1% for homesteads, 2% for other residential property and farmland, and 3% for everything else. Your county auditor applies the "circuit breaker" credit automatically. Taxes approved by voters in a referendum, usually for schools, sit outside the cap.
The tax rate still matters, but only up to the point where the cap kicks in. In most Indiana cities, a typical homestead hits the cap, so a $250,000 home pays roughly the same whether the rate is $2.10 or $8.10.
Pay 2026 certified tax rates
These are the Department of Local Government Finance's certified rates per $100 of net assessed value for the main tax district in each city, for taxes billed in 2026. The last two columns show the tax on a $250,000 homestead: the amount the rate alone would produce after the 2026 deductions, and the actual bill after the 1% cap and the new 10% homestead credit.
| City (district) | Pay 2026 rate | Pay 2025 | Tax before cap | Bill after cap and credit |
|---|---|---|---|---|
| Gary (Calumet Twp) | 8.1000 | 8.3486 | $9,817 | $2,250 |
| Muncie | 4.9549 | 5.4775 | $6,005 | $2,250 |
| South Bend (Centre) | 4.8274 | 4.9608 | $5,851 | $2,250 |
| Anderson | 4.5130 | 4.7755 | $5,470 | $2,250 |
| Terre Haute | 4.2901 | 4.5676 | $5,200 | $2,250 |
| Hammond | 3.7529 | 4.0126 | $4,549 | $2,250 |
| Kokomo | 3.7234 | 3.8141 | $4,513 | $2,250 |
| Evansville (Pigeon Twp) | 3.5448 | 3.5768 | $4,296 | $2,250 |
| Elkhart (Concord Twp) | 3.2214 | 3.2217 | $3,904 | $2,250 |
| Fort Wayne (Wayne Twp) | 2.8975 | 2.8141 | $3,512 | $2,250 |
| Indianapolis (Center Twp) | 2.7291 | 2.7858 | $3,308 | $2,250 |
| Columbus | 2.5619 | 2.5430 | $3,105 | $2,250 |
| Noblesville | 2.5549 | 2.6804 | $3,097 | $2,250 |
| Lafayette | 2.3557 | 2.2948 | $2,855 | $2,250 |
| Greenwood (Pleasant Twp) | 2.3262 | 2.3936 | $2,819 | $2,250 |
| Fishers | 2.1994 | 2.1955 | $2,666 | $2,250 |
| Bloomington | 2.1061 | 2.0517 | $2,553 | $2,250 |
| Carmel | 2.0167 | 1.9977 | $2,444 | $2,200 |
How the $250,000 example works for pay 2026: subtract the $48,000 standard deduction and the 40% supplemental deduction, leaving $121,200 of net assessed value; multiply by the rate; cap the result at 1% of $250,000 ($2,500); then subtract the new 10% homestead credit (up to $300). On a $250,000 homestead the cap binds whenever the rate is above about $2.06, which is almost every city on the list. Referendum levies can push a real bill above these figures; Indianapolis Public Schools, for example, has one.
Rates vary within each city by township and school district. Other Indianapolis townships ranged from $2.68 to $2.71 for pay 2026, and Carmel's Washington Township district is $2.41.
Where the cap matters less: rentals and second homes (2% cap) and commercial property (3%) feel the high rates in full. That's why the rate in places like Gary still shapes the local economy.
What the 2025 property tax law changes
Indiana's 2025 law (Senate Enrolled Act 1) changes how homesteads are taxed over the next several years:
- The standard deduction phases out. It was the lesser of 60% of value or $48,000. It's $48,000 for pay 2026, then $40,000, $30,000, $20,000, $10,000 and zero from pay 2031.
- The supplemental deduction grows from 40% of the remaining value for pay 2026 to 46%, 52%, 57%, 62% and 66.7% from pay 2031. By then about a third of a homestead's value will be taxable.
- A new homestead credit: 10% of the bill, up to $300, applied automatically starting with pay 2026 bills.
- Deductions become credits for seniors (a $150 credit for owners 65+ with income up to $60,000 single or $70,000 joint), the blind and disabled ($125), and, from 2026, disabled veterans.
Make sure your homestead deduction is on file with the county auditor. It's what triggers the 1% cap and the new credit. See what a homestead exemption is.
Deadlines
- Payments: two installments, due May 10 and November 10 (the next business day if it falls on a weekend or holiday).
- Appeals: file Form 130 with the county assessor by June 15 (in the assessment year if your Form 11 notice was mailed before May 1, otherwise the year the bill is mailed). Objective errors can be appealed within three years. See our appeal guide.
Where these numbers come from
Tax rates are from the Indiana Department of Local Government Finance's Certified Tax Rates by District for pay 2025 and pay 2026. The circuit breaker rules are from the DLGF's fact sheet. The 2025 law changes are from a DLGF memo of May 2026 on deductions, credits and exemptions and an Association of Indiana Counties summary. Appeal rules are from the DLGF's assessment appeals fact sheet. The $250,000 examples are our calculations. For ZIP-level data, start from our Indiana page.