Indiana housing costs at a glance
| Indiana | |
|---|---|
| Median home value (Zillow) | $261,000 |
| Average effective property tax | 0.76% |
| Typical rate for a new buyer (calculator default) | 0.9% |
| Average homeowners insurance ($300k dwelling) | $2,220 a year |
| 2026 conforming loan limit (one unit) | $832,750 |
Example: median-priced home
Indiana home for $261,000, 20% down, 6.5% 30-year fixed: principal and interest $1,320 + property tax $196 + insurance $185 = about $1,701 a month. Enter your own rate quote and the actual tax rate of the property for a precise figure.
Indiana property tax: capped at 1% for homes
Indiana's constitution caps property tax on a homestead at 1% of its gross assessed value (2% for rentals and farmland, 3% for business property), so a homeowner's bill can never exceed 1% of the assessed value except for voter-approved school and local referendum levies. With the homestead deductions the average effective rate is about 0.76%. File for the homestead deduction with the county auditor after you buy, otherwise you pay the 2% rate.
Other Indiana costs
- No transfer tax: Indiana does not tax real estate transfers; only a small sales disclosure filing fee applies.
- Insurance: about $2,220 a year on average, mostly because of hail and wind storms.
- See also the Indiana paycheck calculator for the 2.95% state and county income tax.
Other states
See also the Indiana paycheck calculator and mortgage costs in other states.
Frequently asked questions
What is the property tax cap in Indiana?
1% of gross assessed value for a homestead, 2% for rental homes and farmland and 3% for other property, plus any voter-approved referendum levies.
What is the monthly payment on a median-priced Indiana home?
On a $261,000 home with 20% down at 6.5%, principal and interest are about $1,320; with property tax at 0.9% and average insurance the total is about $1,701 a month.
Does Indiana have a transfer tax?
No. Indiana does not tax real estate transfers.
Why must I file the homestead deduction in Indiana?
Without it the home is taxed as non-homestead property, with a 2% instead of 1% cap and no homestead deductions.
For information only; not a loan offer. Property tax, insurance and closing costs depend on the specific property and lender.
Sources
- Indiana Department of Local Government Finance
- FHFA – 2026 conforming loan limits
- U.S. Census Bureau ACS 2024 – real estate taxes (via NAHB / Construction Coverage)
- Zillow Home Value Index
- Insurify – home insurance by state
Rules checked: October 2026