For Indiana homeowners, property tax bills can be a source of confusion. The flyer from the Indiana Association of Realtors sheds light on how property assessments are determined and what homeowners can expect from their bills. Here’s a breakdown of the key points:

Billing Cycle and Assessment Timing

Indiana property taxes are collected in arrears, meaning you pay this year for the value of your property in the previous year. So, the property tax bills you’re receiving now (due May 10th and November 12th, 2024) are based on property assessments from 2023.

In April, you might also receive a Notice of Assessment (Form 11) from your county assessor. This form establishes your property’s 2024 assessed value for next year’s tax bills (payable in 2025).  In some counties, the assessment notice and tax bill might be combined into a single form.

Market Value Assessments

Indiana property taxes are market-based, meaning your property’s assessed value should reflect its fair market value. This value is determined in January of the assessment year. Property assessments are capped at 1% of the homestead's gross assessed value, according to the Indiana constitution, unless additional taxes are added due to school referendums or voter-approved projects.

Appealing Your Assessment

If you believe your property’s assessment is inaccurate, you have the right to appeal it.  The window to appeal typically begins after you receive your Notice of Assessment.  Because assessments impact your property tax bill, it’s important to address any discrepancies before the tax bills are calculated.

How Market Value Assessments Work

The Indiana Association of Realtors flyer explains that assessed property values should be based on “objective measures of market value.”  In the case of homestead properties, this means the assessment should reflect what your home would likely sell for in today’s market.

Homeowners who are unfamiliar with market trends might be surprised to see their assessments go up, especially if they haven’t made any improvements to their property. However, if the system is working correctly, these increases should correspond with general market trends in your area.

Understanding Market Fluctuations

The flyer uses the example of a statewide median sale price increase of 4% between 2022 and 2023 to illustrate how market value assessments can impact property taxes.  Because property taxes are assessed in arrears, this 4% increase in property values in 2024 would be reflected in the pay 2025 tax bills. 

How to Get More Information

The Indiana Association of Realtors flyer doesn’t provide any specific steps on how to challenge an assessment or how to find more information about property assessments in your county.  However, here are some resources that can help:

Your County Assessor’s Office: This is the best place to start for information about property assessments in your area.
Clark County Assessor
Floyd County Assessor

The Indiana Department of Local Government Finance: The DLGF website https://gateway.ifionline.org/public/pts/ has a searchable database that allows you to look up property tax information for any county in Indiana.

Understanding how property assessments are determined can help you make informed decisions about your property taxes.  If you have any questions or concerns, don’t hesitate to contact us or your county assessor’s office.