What is the property tax rate in Indianapolis?

Indianapolis (Marion County) has an effective property tax rate of roughly 0.87% of market value for a typical owner-occupied home, after homestead deductions are applied to the gross assessed value.

How does the Indiana homestead deduction work?

Owner-occupied homes get a standard deduction — the lesser of $48,000 or 60% of assessed value — plus a supplemental deduction of 35% of the remaining value up to $600,000. Both lower the taxable assessed value before the rate applies.

What is the 1% property tax cap?

Indiana's constitutional circuit breaker caps homestead property tax at 1% of the home's gross assessed value. If the calculated tax exceeds that ceiling, the bill is reduced to the cap, which keeps the effective rate below 1%.

Does Indiana assess at full market value?

Yes. Unlike states that assess at a fraction of value, Indiana sets gross assessed value equal to market value. Deductions then reduce the taxable portion before the local tax rate is applied.

Are these figures exact?

No. The estimate uses representative Marion County rates and the main homestead deductions. Actual bills depend on your township's tax rate, additional deductions like mortgage or over-65, and special assessments. Treat it as a planning estimate.

Indianapolis Property Tax Estimator

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This estimator approximates annual Indianapolis property tax for an owner-occupied home. It starts from market value, applies Indiana’s standard and supplemental homestead deductions, computes tax at a typical Marion County rate, and enforces the 1% constitutional cap that keeps the effective rate near 0.87%.

How it works

Indiana sets gross assessed value equal to market value, then subtracts homestead deductions before applying the local rate, with a 1% circuit-breaker ceiling:

gross_av     = market_value
standard_ded = min(48000, gross_av * 0.60)
supplemental = (gross_av - standard_ded) * 0.35   (capped at $600k base)
taxable_av   = gross_av - standard_ded - supplemental
raw_tax      = taxable_av * local_rate
capped_tax   = min(raw_tax, gross_av * 0.01)      (homestead 1% cap)

Example

On a $250,000 home, the standard deduction is $48,000 and the supplemental is (250000 - 48000) * 0.35 = $70,700, leaving a taxable value of $131,300. Applying the local rate and the 1% cap produces an estimated annual tax of about $2,175, roughly 0.87% of market value.

Notes

Non-homestead property does not get these deductions or the 1% cap and is capped at 2% or 3% instead. Township rates, mortgage and senior deductions, and special levies all shift the real bill. Confirm with the Marion County Assessor and your tax statement.