When you’re preparing to buy a home, property taxes might not be on your mind initially. However, property tax rates can vary dramatically within a state, potentially making a home that seems highly affordable less cost-effective or pushing an expensive house over the edge into unaffordable territory. If you’re looking to buy in Indiana, factoring in property tax rates is essential. If you’re wondering where the lowest property taxes in Indiana are, here’s what you need to know.
Where Are the Lowest Property Taxes in Indiana?
Overall, the property tax rates in Indiana are relatively low, coming in near half of the national average. However, the rates do vary by location, making some counties more affordable than others.
When it comes to the effective tax rates, you’ll find the lowest one in Montgomery County, coming in at 0.41 percent. After that is Pulaski County with 0.43 percent, followed by Clay and Wabash Counties with 0.46 percent. Rounding out the lowest five property tax rates in Indiana is Jasper County at 0.47 percent.
Homes are also fairly affordable in many of those areas. For example, home values in Crawfordsville, which is located in Montogomery County, have an average value of $165,014. Almost half of the national average, which comes in at $316,368.
What’s in Montgomery County, Indiana?
As with many counties with low property tax rates, Montgomery County is relatively rural. In total, around 38,365 people call the county home, and the largest city in the county – Crawfordsville – only has a popular of 16,151.
However, that doesn’t mean that Montgomery County, Indiana, doesn’t have anything to offer. It’s home to the Bachner Nature Preserve and the Athens of Indiana Arts Gallery. Plus, Indiana’s first Carnegie Library building was in Crawfordsville, and it now serves as a museum.
Overall, that only scratches the surface of what Montgomery County brings to the table. There’s plenty of outdoor recreation opportunities, golf courses, historic covered bridges, and much more throughout the area. Plus, it’s only around an hour away from Indianapolis, making a trip to the city a breeze.
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The Highest Property Taxes in Indiana
While Indiana has lower property tax rates than many other states, that doesn’t mean every county comes in even close to the figures listed above. In fact, plenty of Indiana counties have effective property tax rates that are more than double what you find in the counties with the lowest rates.
Lake County sits at 1.13 percent, while Marion County averages at 1.03 percent. Vigo County sits at 1.01 percent, while St. Joseph Country comes through with a 1.00 percent. Both Hendricks and Porter Counties have effective property tax rates of 0.98 percent.
As with most states, counties with higher rates tend to be home to large population centers. For instance, Gary is in Lake County, while Indianapolis is in Marion County. Along with higher rates, the home values are often higher in those regions, too, allowing the tax rates to have a significant impact on house affordability.
If you’re looking for a new home, does finding one in an area with the lowest property taxes in Indiana matter, or do you focus on other factors? If it’s the latter, what do you think is more critical than property tax rates? Share your thoughts in the comments below.
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Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.
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