Gross Assessed Value (GAV)

This is the total value assigned to your property by the county assessor before any tax savings are applied. It includes:

• Land value
• Home/Building value, such as your home, garage, or other buildings
• Improvements

Deductions

Deductions reduce the taxable value of your property. Indiana homeowners may qualify for deductions such as:

• Homestead Deduction

Available for homeowners who use the property as their primary residence. This deduction reduces the taxable value of the home and is one of the largest property tax savings available to Indiana homeowners. 

• Supplemental Homestead Deduction

An additional deduction automatically applied to qualifying homestead properties after the standard Homestead Deduction. It further lowers the taxable value of a homeowner’s primary residence. 

• Mortgage Deduction

Available to homeowners who have a mortgage on their primary residence. This deduction helps reduce taxable value based on the mortgage balance and can provide additional tax savings. 

• Veteran Deduction

Property tax deductions available to eligible veterans, disabled veterans, or surviving spouses who meet Indiana qualifications related to military service and disability status. 

• Senior Deduction

Available to qualifying senior citizens who meet age, income, and property value requirements established by Indiana law. This deduction helps reduce property taxes for eligible older homeowners. 

These help lower the amount of property taxes owed.

Exemptions

Exemptions remove certain property or portions of value from taxation. Some exemptions are available for:

• Nonprofits Exemptions - Certain nonprofit organizations may qualify for property tax exemptions when the property is used for charitable, educational, religious, or nonprofit purposes. Examples include:

Churches and religious organizations

Nonprofit schools and universities

Charitable organizations and foundations

Hospitals and healthcare nonprofits

Community service organizations

• Government-owned property - Property owned and used by government entities is generally exempt from property taxes. Examples include: 

Public schools

City, town, and county government buildings

Public parks and libraries

Fire stations and police departments

• State-owned or federally owned property

Specific qualifying situations established by Indiana law - Indiana law also allows exemptions for certain property uses or situations, including: 

Educational property used for instructional purposes

Cemeteries and burial grounds

Certain agricultural or conservation land uses

Property used for public utilities or public transportation in specific situations

Economic development or redevelopment exemptions approved by local government

Important to Know

Unlike deductions and credits typically used by homeowners, exemptions often apply to organizations, public entities, or specific property uses that qualify under Indiana law.

Net Assessed Value (NAV)

Your Net Assessed Value is the remaining taxable value after all eligible deductions and exemptions are subtracted from the Gross Assessed Value. This is the amount used to calculate your property tax bill.

Credits

Credits are applied after taxes are calculated and help reduce the final amount owed. Common Indiana Property Tax Credits:

• Property Tax Cap Credit (“Circuit Breaker Credit”)

Indiana law limits how much property tax can be charged based on a percentage of a property’s gross assessed value. For most homeowners, taxes are capped at 1% of the home’s gross assessed value. If the calculated tax bill exceeds the cap, the difference is automatically reduced through the Circuit Breaker Credit. 

1% Cap: Applies to homesteads (owner-occupied primary residences). 

2% Cap: Applies to other residential property (such as rental homes) and agricultural land.

3% Cap: Applies to all other property types, such as commercial buildings or business personal property.

• Over 65 Circuit Breaker Credit

Some qualifying senior citizens may receive additional protection from large property tax increases through special income-based circuit breaker relief programs. 

• Local Property Tax Replacement Credits (LOIT Credits)

Some Indiana counties may provide local tax relief credits funded through local income taxes. These credits vary by county and may appear as a reduction on the tax bill. 

• Property Tax Refund Credits

Occasionally, taxpayers may receive credits related to corrected assessments, appeals, or overpayments from previous tax years. 

• Tax Increment Financing (TIF) and Special Credits

In limited situations, certain redevelopment areas or economic development programs may provide tax-related credits or adjustments that affect the final amount owed.

Important to Know

Credits are applied after the tax bill is calculated, meaning they directly reduce the amount a homeowner owes rather than lowering the assessed value of the property.

Special Assessments

Some bills include:

• Stormwater fees 
• Sewer projects
• Solid waste fees 
• Local improvement assessments

These are often listed separately because they are:

• NOT part of the 1% tax cap
• Added after tax cap calculations

This is why some homeowners feel taxes increased even when rates dropped.

• Schools
• City/town
• County government
• Library
• Fire district
• Township
• Referendums
• Special assessments
   

Click here to view a sample tax bill

Click here to view presentation of decoding your tax bill

Formula:

Gross Assessed Value

− Deductions & Exemptions

= Net Assessed Value

× Tax Rate

− Credits

+ Voter-Approved Adjustments

+ Special Assessments

= Final Property Tax Bill