A median Indiana home costs $243,500 (41st of 51). Borrowing 80% at 7.40% gives $1,603.84 per month once $150.17 of tax and $104.92 of insurance are added to $1,348.76 of principal and interest; at 5% down with PMI, budget $1,953.12.
Homestead exemptions and property tax relief
For 2026 the homestead standard deduction is $40,000, and a supplemental deduction removes 40% of the remaining assessed value. Then the 1% circuit-breaker cap applies. You can apply on the homestead section of the Sales Disclosure Form at closing or on form HC10 with the county auditor.
First-time buyer programs
The Indiana Housing and Community Development Authority's First Step program gives 5% down payment assistance on a 30-year fixed FHA or conventional loan to first-time buyers, or to buyers in targeted areas, within county income and price limits.
Transfer and recording taxes
Indiana has no transfer tax. Buyer and seller file a Sales Disclosure Form with the county, and recording fees apply.
Closing costs to plan for
With no transfer tax and low escrow, buyer costs are mostly lender and title charges. Taxes are paid in arrears, so expect a seller credit at closing.
When property tax bills are due
Indiana property taxes are due twice a year, in May and November; for 2026 the dates were May 11 and November 10. You pay the county treasurer. A payment within 30 days after a due date carries a 5% penalty, and after that the penalty rises to 10%. Indiana bills are paid in arrears, so a bill paid in 2026 is for the 2025 assessment, and closings normally credit the buyer for taxes the seller owes.
Before you buy in Indiana
Deductions follow the owner, not the house. The seller's homestead deduction does not carry over to you, so file as soon as you close, either on the homestead section of the sales disclosure form or on form HC10. An application filed or postmarked by January 15 counts for taxes first due that year. The standard deduction is being phased out on a schedule set by law: $48,000 in 2025, $40,000 in 2026, $30,000 in 2027, $20,000 in 2028, $10,000 in 2029 and nothing from 2030, so expect your bill to rise over time even if the assessment does not.
2026 loan limit in Indiana
FHFA 2026 one-unit conforming limits: the $832,750 baseline covers each of the 92 counties. The typical $194,800 loan stays conforming.
Indiana numbers used above
| Measure | Indiana | U.S. |
|---|---|---|
| Median home value (ACS 2024) | $243,500 | $360,600 |
| Effective property tax rate | 0.74% (29th highest) | 0.89% |
| Average HO-3 premium (NAIC 2023) | $1,259 | $1,737 |
| Median household income | $71,959 | $81,604 |
| Median gross rent | $1,104 | $1,487 |
| Income needed at 28% (20% down) | $68,736 | – |
Frequently asked questions
When are Indiana property taxes due?
Twice a year, in May and November. The 2026 dates were May 11 and November 10.
How do I get the Indiana homestead deduction?
File the homestead section of the sales disclosure form at closing, or form HC10 with the county auditor. It must be filed or postmarked by January 15 for that year's bill.
Is Indiana's homestead standard deduction going away?
Yes, under current law it phases down from $48,000 in 2025 to $40,000 in 2026 and reaches zero in 2030.
What is the median-home payment in Indiana?
About $1,603.84 a month on a $243,500 home with 20% down at 7.40%, including tax and insurance.
Sources
- Indiana DLGF, due dates
- Indiana DLGF, property tax benefits form
- Indiana DLGF 2026 deductions memo
- Indiana DLGF, circuit breaker caps
- IHCDA homeownership programs
- FHFA, 2026 conforming loan limits
- Census ACS 2024 1-year (B25077, B25103, B19013, B25064); NAIC homeowners report (2023); Freddie Mac PMMS.
See also: all states · house affordability · Indiana paycheck