TAXES - INCOME, PROPERTY, SALES




PROPERTY  TAXES

Property taxes represent a property owner’s portion of the local government’s spending in a given year. Property taxes in Indiana are paid in arrears, meaning the taxes paid in the current year represent the taxes owed for the previous year. Taxes in Indiana are due annually in two installments - May 10 and Nov. 10.

A property’s assessed value is the basis for property taxes. Annually local assessing officials assess the value of real property on March 1 based on market value in use of the property. County officials add all of the assessed values of property in a county together and subtract the applicable deductions to determine the county’s net assessed value. The Indiana Department of Local Government Finance sets the total amount of money government units in a county can spend in a year based on projected revenues for the county. This total allowed expenditure is divided by the net assessed value to determine the tax rate. Most simply, this can be explained as:

TAX RATE = Estimate of funds to be raised/net assessed value

The tax rate is multiplied by the assessed value after all deductions are subtracted from each property.  The county auditor then applies the state homestead credit and property tax replacement credit to arrive at the amount the property owner will pay in taxes to the county.

Click HERE for a great link to CITIZENS GUIDE TO PROPERTY TAX that can answer all your questions and tell you county specific rates, etc.

Indiana now has a constitutional cap on property taxes.  (Posted 11/2/10)

With overwhelming 71 percent support with most of the state’s votes counted, Hoosiers approved the caps that limit property tax bills to 1 percent of the assessed value of homes, 2 percent for farms and rental properties and 3 percent for businesses.

As a result, homeowners, landlords and businesses will save, and state and local government units will lose, nearly $500 million per year.

The loss of tax revenue has forced city and county governments to consider consolidation options ranging from purchasing items such as salt to merging school corporations and libraries. In some areas, government units have eliminated some services.




STATE SALES Tax

The current sales tax rate for the state is 7%



STATE INCOME Tax

The STATE rate is 3.23% of your federal income tax liability



COUNTY  INCOME TAX rates vary.

Adams county is 1.624%

Bartholomew county is 1.25%

Boone county is 1%

Brown county is 2.2%

Clark county is 2%

Dekalb county is 2%

Delaware county is .015%

Elkhart county is 2%

Fountain county is .0155%

Gibson county is .007%

Hamilton county is 1%

Hancock county is 1.65%

Hendricks county is 1.4%

Henry county is .015%

Jackson county is 1.6%

Jasper county is .02864%

Jennings county is 1.75%

Johnson county is 1%

Knox county is 1%

Madison county is 1.75%

Marion county is 1.62%

Monroe county is 1.095%

Ohio county is .0125

Park county is 2.45%

Perry county is .0181%

Pike county is .0075%

Posey county is 1%

Pulaski county is .0338

Randolph county is 2.25%

Rush county is .021%

Shelby county is .015%

Tippecanoe county is 1.1%

Union county is .0175%

Vanderburgh county is 1%

Wabash county is .5%

Warrick county is .5%

Whitley county is .014829%


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