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Updated 2025 Tax Year

Decatur County
Property Tax Guide

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

10 Official Sources
8 min read
Quick Facts
Tax Rate
Varies by taxing district combination (school, township, municipality, library, special districts)
1st Due
May 10
2nd Due
Nov 10
Exemptions
5+ Available
Section 1

How Property Tax Works

Property taxes in Decatur County, Indiana, are the primary funding source for essential local services including public schools, county government operations, emergency services, and infrastructure maintenance. The property tax system in Indiana is based on assessed value rather than market value, with properties assessed at approximately 100% of their true tax value as determined by the county assessor.

Decatur County property owners can expect effective tax rates that vary significantly based on their location within the county due to different combinations of taxing districts. These districts may include school corporations, townships, municipalities, libraries, and special service districts. The county uses a complex system of tax rates applied to net assessed value after any applicable tax credits are deducted. Property owners should note that most tax benefits require annual applications and are not automatically applied.

Section 2

What Makes Up Your Tax Bill

Based on the 2024 Pay 2025 tax year data:

ComponentRateDescription
Base County RateVaries by districtFunds county government operations and services
School DistrictVaries by corporationFunds local school operations and debt service
TownshipVaries by townshipTownship government and fire protection services
MunicipalVaries by city/townCity or town services (where applicable)
LibraryVaries by districtPublic library services
TIF DistrictsVariableTax Increment Financing for economic development
Sample Combined Rate0.0037890Example rate for Treasurer Decatur County district

Note: The rates shown apply to the 2024 Pay 2025 tax year. Actual tax rates vary significantly depending on your specific location within Decatur County due to different combinations of special taxing districts. TIF (Tax Increment Financing) districts can add substantial additional assessments, as evidenced by the 56.40% TIF rate in some areas.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Decatur 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 taxes in Decatur County are additional property tax assessments that occur outside the regular annual assessment cycle. These are typically triggered by changes in property ownership, new construction, or improvements that increase a property's assessed value during the tax year. The supplemental assessment covers the difference between the old and new assessed values, prorated for the portion of the tax year remaining after the change occurred.

For example, if you complete a home addition worth $50,000 in assessed value halfway through the tax year, you would receive a supplemental tax bill for half of the annual taxes on that $50,000 increase. The calculation uses the same tax rates as your regular property tax bill but applies only to the increased assessed value and the remaining months in the tax year.

Example Calculation

Example 1: $300,000 Home

  • Assessed Value: $300,000
  • Less: Standard Homestead Deduction: $48,000 (if applied for)
  • Net Taxable Value: $252,000
  • Annual Tax (at 1.05% effective rate): $2,646
  • Monthly Escrow: $220

Example 2: $600,000 Home

  • Assessed Value: $600,000
  • Less: Standard Homestead Deduction: $48,000 (if applied for)
  • Net Taxable Value: $552,000
  • Annual Tax (at 1.05% effective rate): $5,796
  • Monthly Escrow: $483

Example 3: $1,000,000 Home

  • Assessed Value: $1,000,000
  • Less: Standard Homestead Deduction: $48,000 (if applied for)
  • Net Taxable Value: $952,000
  • Annual Tax (at 1.05% effective rate): $9,996
  • Monthly Escrow: $833

Note: These examples use estimated effective rates. Actual rates vary by taxing district. All deductions require annual application to the county auditor and are not automatically applied.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Decatur County require property tax escrow accounts for borrowers with less than 20% down payment. Your lender collects monthly property tax payments along with your mortgage payment and holds these funds in an escrow account. The lender then pays your property taxes directly to Decatur County when the installments are due.

Property taxes in Decatur County are due in two installments: typically March 31st for the first half and September 30th for the second half. Your lender will pay these installments on your behalf from your escrow account. Lenders are required to provide annual escrow statements showing deposits, payments, and account balances. If your property taxes increase or decrease significantly, your lender may adjust your monthly escrow payment and may require you to make up any shortage or provide a refund for overages.

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 property taxes due in Decatur County? A: Property taxes are due in two installments. For the current tax year, the first installment is typically due by March 31st, and the second installment by September 30th. For 2026, the first payment has been extended to May 10th.

Q: What tax credits are available and how do I apply? A: The primary credit is the Standard Homestead Deduction, which must be applied for annually. Contact the Decatur County Auditor at 812-663-2570 for applications. Other credits may include Senior Citizens Deduction, Disabled Veterans Deduction, and Over 65 Deduction. All require separate applications and are not automatic.

Q: How does the Homestead Credit work? A: The Homestead Credit limits annual assessment increases rather than reducing market value. It caps assessment growth and provides a standard deduction amount. You must file Form 05473 with the county auditor to claim this credit - it is not automatically applied.

Q: How often are properties reassessed? A: Indiana conducts annual reassessments, but major reappraisals typically occur every few years. The county assessor reviews property values annually and may adjust assessments based on market conditions and property improvements.

Q: What happens if I pay my taxes late? A: Late payments incur penalties and interest. Contact the Decatur County Treasurer at 812-663-4190 for specific penalty rates and payment arrangements.

Q: Can I pay my property taxes online? A: Contact the Decatur County Treasurer's office at 812-663-4190 to inquire about online payment options and accepted payment methods.

Q: How do special district taxes affect my bill? A: Special districts like TIF zones can significantly increase your tax rate. Some TIF districts in Decatur County add over 50% to the base tax rate. Your location determines which districts apply to your property.

Q: How do I appeal my property assessment? A: Contact the Decatur County Auditor at 812-663-2570 for information about the assessment appeal process and deadlines. You typically have until the first Monday in June to file an appeal.

Q: Where can I get help with exemptions and address changes? A: Contact the Decatur County Auditor at 812-663-2570 for all exemption applications and address changes. For payment issues, contact the Decatur County Treasurer at 812-663-4190.

Q: What triggers a supplemental tax assessment? A: New construction, property improvements, ownership changes, or zoning changes can trigger supplemental assessments. These are calculated based on the increased assessed value prorated for the remaining tax year.

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