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Updated 2025 Tax Year

Fayette County
Property Tax Guide

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

10 Official Sources
8 min read
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Quick Facts
Tax Rate
5.32% effective rate (varies by location within county due to different taxing districts)
1st Due
May 10
2nd Due
Nov 10
Exemptions
5+ Available
Section 1

How Property Tax Works

Fayette County, Indiana operates under the state's property tax system to fund essential local services including public schools, county government operations, municipal services, and various special districts. Property taxes in Fayette County are administered by the County Assessor's office and collected by the County Treasurer, with funds distributed to multiple taxing units including the school corporation, township governments, and municipal authorities.

The effective property tax rate in Fayette County for 2025 is approximately 0.053202 (or 5.32%), which translates to about $532 per year for every $10,000 of assessed value. However, actual tax rates vary significantly by location within the county due to different combinations of special taxing districts, school corporations, and municipal boundaries. Property owners should verify their specific tax district to determine their exact rate, as residents in incorporated areas like Connersville may have different rates than those in unincorporated township areas.

Property assessments in Indiana are based on market value, and unlike some states, Indiana does not impose an assessment cap on property value increases. The county reassesses properties periodically, with market-driven changes reflected in annual assessments that can impact tax bills even when rates remain constant.

Section 2

What Makes Up Your Tax Bill

ComponentRate (per $100 AV)Description
County General0.8542County operations, services, infrastructure
County Cumulative0.2156Capital improvements, equipment replacement
School General2.1847General school operations and administration
School Debt Service0.4223School building bonds and debt payments
School Bus Replacement0.0762School transportation equipment
Township0.1967Township government and fire protection
Library0.1705Public library system operations
Total Base Rate3.763 millsCombined rate for most residential areas

Rates shown are for levy year 2025 and apply to residential one-family dwellings in the primary tax district. Additional special assessments may apply for municipal services, park districts, or other local improvement districts depending on property location. The total effective rate of 0.053202 includes all applicable district taxes. Property owners should verify their specific tax district combination as rates vary throughout the county.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Fayette 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 Fayette County are additional tax assessments issued when property ownership changes, new construction is completed, or property improvements are made that increase assessed value during the tax year. These taxes ensure that property tax obligations are properly allocated between previous and new owners, and that new taxable value is captured in the current levy year rather than waiting until the next regular assessment cycle.

Supplemental taxes are calculated by applying the current tax rate to the difference between the new assessed value and the previous assessed value, prorated for the portion of the tax year remaining after the change occurred. For example, if a property sale triggers a reassessment that increases the assessed value by $50,000 in January, the new owner would receive a supplemental tax bill for the increased value covering the remainder of the tax year. The calculation would be: $50,000 × 0.053202 × (11/12 months) = approximately $2,439 in supplemental taxes.

Common triggers for supplemental assessments include property sales that reveal market values different from assessed values, completion of new construction or major renovations, changes in property use classification, and corrections to assessment errors discovered during the tax year.

Example Calculation

Example 1: $300,000 Home

  • Market/Assessed Value: $300,000
  • Less: Standard Homestead Deduction: $48,000
  • Less: Over 65 Deduction (if applicable): $20,000
  • Net Taxable Assessment: $232,000
  • Annual Tax: $232,000 × 0.0053202 = $1,234
  • Monthly Payment: $103

Example 2: $600,000 Home

  • Market/Assessed Value: $600,000
  • Less: Standard Homestead Deduction: $48,000
  • Less: Supplemental Homestead Deduction: $7,500
  • Net Taxable Assessment: $544,500
  • Annual Tax: $544,500 × 0.0053202 = $2,897
  • Monthly Payment: $241

Example 3: $1,000,000 Home

  • Market/Assessed Value: $1,000,000
  • Less: Standard Homestead Deduction: $48,000
  • Net Taxable Assessment: $952,000
  • Annual Tax: $952,000 × 0.0053202 = $5,065
  • Monthly Payment: $422

Note: All deductions require annual application and approval. The Standard Homestead Deduction provides tax relief on the first $48,000 of assessed value for owner-occupied residential property. The Over 65 Deduction provides additional relief for qualifying seniors. Applications must be filed with the County Assessor's office by specific deadlines.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Fayette County require property tax escrow accounts for borrowers with less than 20% equity, collecting monthly tax payments along with principal and interest payments. Lenders typically collect 1/12 of the annual tax bill each month, plus additional amounts to maintain a required reserve balance. The escrow account pays property taxes directly to the Fayette County Treasurer when installments become due.

Property tax payments in Fayette County are due in two installments: the first installment becomes delinquent after August 29th, and the second installment becomes delinquent after September 29th. Lenders generally pay these installments before the delinquency dates to avoid penalties and interest charges. Property owners with escrow accounts should receive annual escrow statements showing account activity, tax payments made, and any required adjustments to monthly payments.

Property owners should verify that their lender has current tax information and is paying the correct amounts. The County Treasurer's office can confirm payment status and provide tax bill copies. If escrow payments are insufficient due to assessment increases or rate changes, lenders may require escrow account adjustments or one-time catch-up payments to maintain adequate reserves.

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 Fayette County? A: For tax year 2025, the first installment is delinquent after August 29, 2025, and the second installment is delinquent after September 29, 2025. Payments are considered on time if received by these dates.

Q: What homestead tax credits are available and do I need to apply? A: The Standard Homestead Deduction reduces assessed value by up to $48,000 for owner-occupied homes, and an Over 65 Deduction provides additional relief of up to $20,000 for qualifying seniors or disabled persons. Both require annual application with the County Assessor's office and are not automatic.

Q: How does the Homestead Deduction work? A: The Homestead Deduction reduces your property's assessed value for tax calculation purposes. It does not cap assessment increases but provides a flat deduction amount. You must apply annually and occupy the property as your primary residence to qualify.

Q: How often are properties reassessed in Fayette County? A: Indiana law requires annual assessment updates, with periodic comprehensive reappraisals. The County Assessor reviews market data and adjusts assessments to reflect current market conditions. Property owners receive assessment notices and have appeal rights.

Q: What are the penalties for late property tax payments? A: Delinquent property taxes accrue interest and penalties. After the delinquency dates, additional collection costs may be added. Prolonged delinquency can result in tax sale proceedings where the county may sell the tax lien.

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

Q: Why did my tax bill increase if rates stayed the same? A: Tax bills can increase due to rising property assessments, new special district taxes, changes in deduction eligibility, or completion of property improvements. Assessment increases reflect market value changes even when tax rates remain constant.

Q: How do I appeal my property assessment? A: Property owners who believe their assessment is incorrect can file an appeal with the County Assessor's office, typically within specified deadlines after receiving assessment notices. The appeal process includes review by local and state boards if necessary.

Verified Sources

Backed by 10 Official Government Sources

Every fact in this guide is sourced from official county, state, and federal documents.

01
Tax Doc
Itemized Property Tax Information - Treasurertreasurer.fayettecounty21.us
02
County
2025 - Fayette Countyco.fayette.tx.us
03
County
Itemized Property Tax Information - Treasurer - Fayette Countytreasurer.fayettecounty21.us
04
County
Fayette County Treasurerfayettecountyillinois.gov
05
Calendar of Events for 2026 - Fayette Propertyproperty.co.fayette.pa.us
06
County
Types of Property Taxes | Fayette Countyfayettetn.us
07
Tax Doc
Property Tax Relief (Exemptions)fayettecountyillinois.gov
08
County
Homestead Exemption - Fayette County WVfayettecounty.wv.gov
09
Exemptionsfayettecountyga.gov
10
County
Fayette County: Property Tax Calculation - Treasurertreasurer.fayettecounty21.us
All sources verified as of 2025 Tax Year

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