Indiana Property Taxes – Best of Times or Worst of Times?

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May 10, 2017 1:13 PM

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Indiana Property Taxes

Best of Times or Worst of Times?

 

As all Hoosiers pay their property taxes this week, either with a check to their county treasurer, their monthly mortgage payments or their monthly rent check, it is a good time to examine how Indiana compares to other states. The U.S. Census Bureau figures that the average household spends $2,149.00/year on property taxes for their homes and another $402.00 for vehicle property taxes.

 

When you compare the effective real estate tax rates Indiana is near the middle of the pack at 23rd.  However, a majority of those states with lower rates end up with higher annual taxes because of their higher median home values.

 

When one examine Indiana’s tax rate and apply it to our median home value our property taxes are the 10th lowest in the country at $1,085.00/year. Every state with lower property taxes is located south of us with Alabama leading the way at $543.00/year.  The states paying the highest property tax every year are located along the east coast with New Jersey paying $7,410.00/year.  According to the comparison Red States impose lower real estate property taxes than Blue States.

 

There are 23 states that do not impose a property tax on vehicles although the data did not consider registration fee for vehicles. This study assumed all residents owned a 2016 Toyota Camry LE (2016’s bestselling car) valued at $23,070.00, as of February 2017.

 

When you compare Indiana we once again come in 10th of the 27 states imposing property taxes on vehicles at $300.00/year.  Louisiana was at the low end with $23.00/year and Rhode Island at the top end with $1,100.00/year.

 

While property taxes are certainly not insignificant for Hoosier taxpayers they are not as onerous as they are in many areas of the country. Obviously Indiana is significantly below what the average American household spends on property taxes for their homes and the residents of 27 states pay for their vehicles.  For that we should be thankful.

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