With a 3.05% top income tax rate and 0.83% property tax, Indiana homeowners face a moderate combined tax burden. This calculator is pre-filled with Indiana numbers: $240,000 median price, 0.83% property tax, $1,350/year insurance.
Last updated: March 13, 2026
Advertisement
Monthly Payment (Indiana)$0
Loan Details — Indiana
Indiana median: $240,000
$
Below 20% triggers PMI on conventional loans
%
Average 30-year fixed ~6.75% (March 2026)
%
Indiana average: 0.83%
%
Indiana average: $1,350/yr
$
Estimated Monthly Payment
$0
Principal & Interest
$0
Property Tax
$0
Insurance
$0
PMI
$0
Total Interest Paid
$0
Total Cost of Home
$0
Indiana Metro Area Home Prices
Click a metro to load its median price into the calculator above.
Yearly Amortization Schedule+
Year
Principal Paid
Interest Paid
Remaining Balance
Advertisement
Indiana's Tax Landscape and Your Mortgage
Indiana levies a flat 3.05% income tax on all taxable income. A household earning $150,000 pays approximately $3,431 in state income tax, which reduces the amount available for monthly mortgage payments by roughly $286/month.
At the state's median home price of $240,000, the $0.83% property tax rate adds $166/month to your mortgage payment. That's $1,992/year — below the national median of ~1.1%.
Property Taxes Across Indiana
The 0.83% statewide average masks significant variation. Property tax cap of 1% of assessed value for owner-occupied homes — unique protection
Price ranges across the state: Indianapolis has a median of $275,000, while Fort Wayne sits at $215,000 — a $60,000 gap that dramatically changes your monthly payment. At $0.83% property tax, that price difference alone means $42/month more in property tax in Indianapolis.
Advertisement
Homebuyer Programs and Exemptions
Indiana offers several programs for homebuyers:
IHCDA First Place program with down payment assistance up to 6%
Mortgage Credit Certificate for federal tax credit
Homestead exemption: Standard deduction: 60% of assessed value (up to $45,000); supplemental deduction on remaining value; 1% cap on property tax as percentage of gross assessed value for homesteads
Indiana-Specific Considerations
Property tax cap of 1% of assessed value for owner-occupied homes — unique protection
Low flat income tax rate of 3.05% but most counties add 1-3% local income tax
Combined state + local income tax can reach 4-6% depending on county
Very affordable housing relative to income levels
Compare Indiana Mortgage Rates
See personalized rates from Indiana lenders. LendingTree matches you with up to 5 offers so you can compare and save.
0.39% property tax, 5% top rate. Median home: $232,500.
Alaska Mortgage Calculator
Coming Soon
1.04% property tax, no income tax. Median home: $340,000.
Arizona Mortgage Calculator
Coming Soon
0.62% property tax, 2.5% top rate. Median home: $395,000.
Frequently Asked Questions
What is the average property tax rate in Indiana?
The average effective property tax rate in Indiana is 0.83%. On a $240,000 home (the state median), that works out to approximately $1,992/year or $166/month added to your mortgage payment. Property tax rates vary by county and school district within Indiana — always check your specific jurisdiction's rate. Homestead exemption: Standard deduction: 60% of assessed value (up to $45,000); supplemental deduction on remaining value; 1% cap on property tax as percentage of gross assessed value for homesteads
How much does homeowners insurance cost in Indiana?
The average annual homeowners insurance premium in Indiana is approximately $1,350 ($113/month). This is near the national average of approximately $1,500/year. Actual premiums depend on your home's location, age, construction type, and coverage limits.
What first-time homebuyer programs are available in Indiana?
IHCDA First Place program with down payment assistance up to 6%. Mortgage Credit Certificate for federal tax credit. These programs typically have income limits, purchase price caps, and may require homebuyer education courses. Check the Indiana housing finance agency website for current eligibility requirements and application deadlines.
How does Indiana's 3.05% income tax affect home affordability?
Indiana's top income tax rate of 3.05% reduces your take-home pay, which affects how much mortgage you can comfortably carry. On a $150,000 salary, state income tax takes roughly $2,974-$3,889/year (effective rate is lower than the top marginal rate). Combined with 0.83% property tax, the total tax burden in Indiana is above average. Use our paycheck calculator to see your exact take-home pay.
What is the conforming loan limit in Indiana?
The 2026 conforming loan limit in Indiana is $806,500. Loans above this amount are considered jumbo loans and typically carry higher interest rates (0.25-0.5% premium), require larger down payments (10-20%), and have stricter qualification requirements including higher credit scores (700+) and lower debt-to-income ratios.
This calculator is for educational purposes. Tax rates and insurance costs are based on Indiana state averages and may not reflect your specific county, school district, or municipality. Consult a financial professional for advice specific to your situation.