Indiana Mortgage Calculator

Mortgage Calculator in Indiana

The median home price in Indiana is $220,000, which is 48% below the national average of $420,000. Indiana's effective property tax rate of 0.81% is 0.29 percentage points lower than the national average of 1.1%.

Metric	Indiana (IN)	National Avg	vs National Average
Median Home Price	$220,000	$420,000	-48%
Property Tax Rate	0.81%	1.1%	-0.29%
Home Insurance (Annual)	$1,400	$2,300	-39%
State Sales Tax	7%	5%	+2.0%
FHA Loan Limit	$472,030	$472,030	Standard
Conforming Loan Limit	$766,550	$766,550	Standard

Indiana offers a homestead exemption of $48,000, which reduces the taxable value of your primary residence. The state uses an assessment ratio of 100% to determine the assessed value for property tax purposes.

Homeownership in Indiana

Indiana offers genuinely affordable homeownership, with a statewide median around $220,000 and strong buyer protections in the form of a circuit breaker cap limiting property taxes to 1% of assessed value for primary residences. The state's economy has diversified from its manufacturing roots and now includes life sciences (Eli Lilly is headquartered in Indianapolis), logistics, and tech. Indianapolis has been one of the more affordable Midwest metros even as it attracts corporate relocations.

Tips for Indiana Homebuyers and Homeowners

• Indiana's property tax circuit breaker is one of its most buyer-friendly laws -- taxes on a primary residence cannot exceed 1% of the assessed value, regardless of local millage rates.
• The Supplemental Homestead Deduction reduces assessed value by 35% on the first $600,000 of residential value, then 25% above that -- on a $220,000 home, the deduction is $77,000.
• Indiana has a flat 3.05% state income tax rate -- one of the lowest flat rates in the country, making take-home pay predictably higher than in many neighboring states.
• Local income taxes (COIT/EDIT) vary by county and can add 1-3% on top of the state rate -- factor in the combined rate when comparing counties for your home search.

Indiana Programs and Assistance

• Indiana Housing and Community Development Authority (IHCDA) Next Home Program -- provides 3.5% down payment assistance as a forgivable second mortgage for first-time and repeat buyers.
• IHCDA Helping to Own (H2O) Program -- offers lower down payment amounts and mortgage insurance options for buyers with limited savings.
• Mortgage Credit Certificate (MCC) through IHCDA -- allows a federal tax credit of 20% of annual mortgage interest paid, reducing tax liability each year.

Did you know? Indiana's property tax circuit breaker, passed via constitutional amendment, guarantees that homeowners never pay more than 1% of assessed value in property taxes -- a protection that is unique among U.S. states.