Indiana real estate taxes

4 Replies

 Would you guys be so kind please and explain to me how do real estate taxes in Indiana work? 

For example, in Arizona and California taxes are 1% from the purchase price. So if I bought my house for 200 K. 5 years ago my taxes are 2000 per year. They do not really change. 

1) are the taxes in Indiana also 1 Petcent from purchase prise? 

2) do the taxes change often? For example, I have seen some properties in Indiana where taxes doubled within the last year and there was no transfer of ownership. Is that common in Indiana for taxes to double or increase significantly ? 

On a non owner occupied property, the taxes are 2% of the assessed value plus any voter approved add-ons. The taxes have nothing to do with transfers of ownership. The ones you saw probably doubled because at one point, they were taxed at the 1% owner occupant level. Owner occupants also get the homestead deductions plus other deductions off the assessed value reducing the taxes more. Landlords get no deductions and the 2% is at the full assessed value.

Originally posted by @Adrien S. :

On a non owner occupied property, the taxes are 2% of the assessed value plus any voter approved add-ons. The taxes have nothing to do with transfers of ownership. The ones you saw probably doubled because at one point, they were taxed at the 1% owner occupant level. Owner occupants also get the homestead deductions plus other deductions off the assessed value reducing the taxes more. Landlords get no deductions and the 2% is at the full assessed value.

 Thank you so much! What happens if owner is living in one unit of fourplex? Does it qualify for the owner occupant tax situation?

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