Indiana Real Estate Property Tax Exemption Guide

Indiana Real Estate Property Tax Exemptions

(tl;dr: here are PDFs you probably want, the Homestead Credit and the Mortgage Exemption. This is not tax advice and I am not a tax expert.)

When you own real estate in Indiana you pay taxes on the assessed value of the property, as determined each year by your County Assessor's office.  If you have a mortgage payment you most likely pay into an escrow account with each payment and your lender is paying the property tax bill, which is due twice each year in May and November. 

If you want to pay less in property taxes, then read on and learn about how real estate property tax exemptions can save you money and result in a lower house payment.  You'll want to know about this stuff before you get to closing!

So, how is the total amount of property tax determined to begin with? The amount of property taxes you pay is based upon a percentage of the assessed value of the property, minus your property tax exemptions.  The percentage is lower for owner occupied homes than it is for investment properties, so if you live in a home you qualify to pay less than if you use it as a rental, for example.

To offset the total assessed value and obtain a lower tax bill you might be interested in knowing about the various real estate property tax exemptions that are offered in the State of Indiana.  In fact, you'll get a nice yellow sheet at closing that has all the information, and when they ask you if anyone told you about these you'll hopefully remember reading this and say yes! 

Some of the property tax exemptions you may qualify for, such as the Homestead Credit and/or the Mortgage Exemption. Others you might qualify for in the future, like if you add renewable energy sources, for example. 

If you have any questions feel free to reach out to use and we will be happy to help. 

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