See how low property taxes are in Indiana
(STACKER) – Ask any homeowner what their expenses are and they’ll tell you: If you’re a first-time buyer, you need to carefully calculate the total cost of owning a home before you jump in. home ownership.
Owning a home comes with dozens of additional costs, from mortgage and interest payments to maintenance, renovations and utility bills. It doesn’t take long before the expenses add up, especially when they add up to potential property tax costs.
To determine which states offer the lowest property taxes, Roofstock analyzed 2021 data from Wallethub and the US Census Bureau. Costs were then determined for property tax rates, median property tax payments, and median house prices for each state and Washington DC. These amounts were then contextualized with what first-time home buyers need to know about property taxes.
Indiana in numbers
- Effective property tax rate: 0.85%
- Annual taxes on a $217.5,000 home: $1,853
- Median home value in Indiana: $141,700
- Indiana median house annual taxes: $1,207
As in many other states, what Indiana residents pay for property taxes varies widely from county to county. This is because property taxes in Indiana are assessed at the county and local level, with each local government setting the tax rate for its jurisdiction. Residents of the most populous counties, such as Marion County, home to the Indianapolis metro area, pay significantly more than the state average for property taxes. Fortunately, there are a number of state exemptions that residents of counties with higher property taxes can use to reduce the cost of their tax bills, including the standard family deduction and an additional family deduction.
Funds from property taxes in this state are used to help fund local governments and are used to pay for a variety of services, from welfare, to building maintenance and construction, to utility costs. police and fire services, as well as local infrastructure and operating costs.
In some states, the high cost of property taxes can cause an otherwise affordable home to be well outside of someone’s price range. In others, the low cost of property taxes might give you a bit more wiggle room in your budget, which is never a bad thing.
If the thought of weighing estimated property tax costs seems overwhelming, start by looking at the states with the lowest property taxes listed below. The national list is inverted by effective property tax rate, with Hawaii being the state with the lowest property taxes, although the results would be different if ordered by the state’s median home taxes. Whether you’re looking for a dream home or the next big investment, owning a home comes with several additional costs, including property taxes.
States with the lowest property taxes
#1. Hawaii: 0.28% effective tax rate on real estate
#2. Alabama: 0.41% effective tax rate on real estate
#3. Colorado: 0.51% effective tax rate on real estate
#4. Louisiana: 0.55% effective tax rate on real estate
#5. Washington, DC: 0.56% effective tax rate on real estate
This story originally appeared on Roofstock and was produced and distributed in partnership with Stacker Studio.