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Updated 2025 Tax Year

Clay County
Property Tax Guide

Everything you need to know about property taxes in Clay County, IN. Rates, due dates, exemptions, and how it affects your monthly payment.

10 Official Sources
8 min read
Quick Facts
Tax Rate
14.740 mills ($14.74 per $1,000 assessed value) - varies by township and municipal districts
1st Due
May 10
2nd Due
Nov 10
Exemptions
5+ Available
Section 1

How Property Tax Works

Clay County, Indiana operates under a property tax system that funds essential local services including schools, county government operations, libraries, fire protection, and various municipal services. Property taxes are the primary revenue source for these local government functions, with tax bills calculated based on assessed property values and applicable tax rates that vary by location within the county.

For the 2025 tax year, Clay County has adopted a tentative millage rate of 14.740 mills (equivalent to $14.74 per $1,000 of assessed value), representing a 4.59% increase from the previous year. This rate is subject to final approval following a public hearing scheduled for November 13, 2025. Property owners should note that actual tax rates vary significantly based on the specific taxing districts where their property is located, including school districts, municipalities, and special service districts. Indiana assesses property at approximately 100% of market value, with the statewide average effective tax rate around 1%, though Clay County's specific rate may differ based on local levies and district assessments.

Section 2

What Makes Up Your Tax Bill

ComponentRate (Mills)Description
County GeneralVariableBasic county operations and services
Clay County SchoolsVariableLocal school district operations and debt service
Municipal/TownshipVariableCity/town services (if applicable)
LibraryVariableClay County Public Library system
Fire ProtectionVariableLocal fire department services
Total Base Rate14.740Tentative 2025 rate (subject to final approval)

Note: The 14.740 mill rate shown is the tentative total rate for FY 2025-2026 and applies to properties within specific taxing districts. Individual components may vary by location within Clay County. Properties in incorporated areas may have additional municipal taxes, while rural properties may have different township assessments. Special improvement districts or TIF (Tax Increment Financing) areas may have additional assessments not reflected in the base rate.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Clay County, property taxes are due in two installments:

First Installment
May 10
Delinquent after Dec 10
Second Installment
Nov 10
Delinquent after Apr 10
Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.
Section 4

Supplemental Tax Bills

Supplemental property taxes in Clay County are triggered when property ownership changes, new construction is completed, or significant improvements are made to existing properties. These taxes cover the period between when the change occurs and the next regular assessment cycle. The supplemental tax is calculated based on the difference between the old assessed value and the new assessed value, prorated for the remaining months in the tax year.

For example, if you purchase a home in Clay County in August that was previously assessed at $200,000 but now has a market value of $350,000, you would receive a supplemental tax bill for the increased assessed value ($150,000 difference) covering August through the end of the fiscal year. This supplemental amount would be calculated using the current millage rate applied to the assessment increase, prorated for the remaining months of ownership in that tax year.

Example Calculation

Example 1: $300,000 Home

  • Market Value: $300,000
  • Assessed Value: $300,000 (100% assessment ratio)
  • Less: Homestead Standard Deduction: -$45,000 (if qualified and applied)
  • Net Taxable Value: $255,000
  • Annual Tax: $255,000 × 0.01474 = $3,758.70
  • Monthly (if escrowed): $313.23

Example 2: $600,000 Home

  • Market Value: $600,000
  • Assessed Value: $600,000
  • Less: Homestead Standard Deduction: -$45,000 (if qualified and applied)
  • Net Taxable Value: $555,000
  • Annual Tax: $555,000 × 0.01474 = $8,180.70
  • Monthly (if escrowed): $681.73

Example 3: $1,000,000 Home

  • Market Value: $1,000,000
  • Assessed Value: $1,000,000
  • Less: Homestead Standard Deduction: -$45,000 (if qualified and applied)
  • Net Taxable Value: $955,000
  • Annual Tax: $955,000 × 0.01474 = $14,076.70
  • Monthly (if escrowed): $1,173.06

Note: All tax credits require application and approval. The Homestead credit shown is estimated and may vary. Additional credits may be available for seniors, veterans, or disabled individuals but must be applied for separately.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Clay County require property tax escrow accounts for borrowers with less than 20% down payment, though some lenders may require escrow regardless of down payment amount. Your lender collects monthly escrow payments along with your mortgage payment and pays your property taxes directly to Clay County when due. Lenders typically collect 1/12th of your estimated annual property tax bill each month, plus a cushion amount allowed by federal law.

Property taxes in Clay County are due on May 10 and November 10, with an extended deadline of January 30 for the following year. Your lender should make these payments on time to avoid penalties. You'll receive an annual escrow analysis statement showing how your escrow account has performed and any adjustments needed for the coming year. If your property taxes increase due to reassessment or rate changes, your monthly escrow payment may increase accordingly. Property owners should verify that their lender has made timely payments and contact the Clay County Treasurer's office if there are any discrepancies.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
  • Plan ahead instead of being surprised by "shortage" letters
Section 6

Frequently Asked Questions

Q: When are Clay County property taxes due for the current fiscal year? A: Property taxes are due on May 10, 2026 and November 10, 2026, with an extended deadline of January 30, 2026 for the following year.

Q: What property tax credits are available and do they require application? A: Clay County offers several tax credits including the Homestead Standard Deduction, Over-65 Deduction, and disabled veterans credits. ALL credits require application and are NOT automatic - you must file with the Clay County Assessor's office to receive them.

Q: How does the Homestead credit work? A: The Homestead credit reduces your assessed value and caps annual assessment increases (typically to 5-10% per year) for your primary residence. You must apply for this credit - it's not automatic when you purchase a home. The credit continues as long as you occupy the property as your primary residence.

Q: What is the application deadline for property tax credits? A: Most property tax credit applications must be filed with the Clay County Assessor by May 10th of the year for which you're seeking the credit. Contact the assessor's office for specific deadlines and required documentation.

Q: How often are properties reassessed in Clay County? A: Indiana requires annual reassessments, but Clay County may conduct more comprehensive reassessments periodically. You'll be notified if your assessment changes significantly and have the right to appeal through the Clay County Property Tax Assessment Board of Appeals.

Q: What are the penalties for late property tax payments? A: Clay County charges penalties and interest on late property tax payments. Contact the Clay County Treasurer's office for current penalty rates and payment options if you've missed a deadline.

Q: Can I pay my property taxes online? A: Contact the Clay County Treasurer's office directly for current online payment options and accepted methods. Many Indiana counties offer online payment systems for property taxes.

Q: Why might my tax bill be different from my neighbor's on a similar property? A: Tax bills can vary due to different assessed values, eligibility for various tax credits, location in different special taxing districts (like TIF districts), or different municipal boundaries within Clay County.

Q: How do special district taxes affect my bill? A: Properties may be subject to additional taxes from special districts such as library districts, fire protection districts, or economic development areas. These appear as separate line items on your tax bill and vary by property location within Clay County.

Q: What should I do if I disagree with my property assessment? A: You can appeal your assessment through the Clay County Property Tax Assessment Board of Appeals. Appeals must typically be filed within specific timeframes after receiving your assessment notice. Contact the Clay County Assessor's office for appeal procedures and deadlines.

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