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Updated 2025 Tax Year

Montgomery County
Property Tax Guide

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

9 Official Sources
8 min read
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Quick Facts
Tax Rate
$0.615 per $100 assessed value (varies by taxing district)
Exemptions
5+ Available
Section 1

How Property Tax Works

Montgomery County, Indiana operates under a property tax system that funds essential local services including schools, public safety, infrastructure, and county operations. Property taxes are levied based on assessed values determined by the County Assessor's Office, with tax bills calculated using rates that vary significantly depending on your specific location within the county due to overlapping special taxing districts.

The effective tax rate in Montgomery County for 2025 is approximately $0.615 per $100 of assessed value for the main county area, though this can vary considerably based on your specific taxing district. Areas like Badin Lake ($0.07), Lake Tillery ($0.04), Wadeville ($0.025), and Biscoe have different supplemental rates that may apply in addition to base county levies. Property owners should verify their specific tax rate based on their exact location, as special districts for schools, libraries, parks, and other services can significantly impact your total tax burden.

Section 2

What Makes Up Your Tax Bill

ComponentRate (per $100)Description
Base County Rate$0.615Main Montgomery County levy for FY 2025
Badin Lake District$0.07Additional assessment for Badin Lake area properties
Lake Tillery District$0.04Supplemental rate for Lake Tillery vicinity
Wadeville District$0.025Additional levy for Wadeville area
Biscoe DistrictVariableSpecific rate for Biscoe area properties

Note: These rates apply to the FY 2025 tax year. Your actual tax rate depends on which special taxing districts apply to your property location. School corporation levies, library districts, fire protection districts, and other special assessments may result in additional rates not listed above. Contact the Montgomery County Assessor's Office to determine your exact tax rate based on your property's location.

Section 3

When Are Property Taxes Due?

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

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 Montgomery County are additional assessments that can be triggered by specific events or circumstances beyond the regular annual tax bill. The most common triggers include ownership changes, new construction or improvements, assessment corrections, or inclusion in special benefit districts. These supplemental taxes are calculated based on the difference between the previous assessment and the new assessed value, prorated for the portion of the tax year affected.

For example, if you complete a $50,000 home addition in July, the supplemental tax would be calculated on that $50,000 increase in assessed value, applied at your property's tax rate, and prorated for the remaining months of the tax year (typically 5-6 months). The Montgomery County Supplemental Homeowners Property Tax Credit may provide additional relief for qualifying homeowners, but this program requires a separate application and is administered through specific eligibility requirements that must be met annually.

Example Calculation

Example 1: $300,000 Home

  • Assessed Value: $300,000
  • Homestead Credit Applied: -$3,000 (example, requires application)
  • Net Taxable Value: $297,000
  • Tax Rate: $0.615 per $100
  • Annual Tax: $1,826.55
  • Monthly Escrow: $152.21

Example 2: $600,000 Home

  • Assessed Value: $600,000
  • Homestead Credit Applied: -$3,000 (example, requires application)
  • Net Taxable Value: $597,000
  • Tax Rate: $0.615 per $100
  • Annual Tax: $3,671.55
  • Monthly Escrow: $305.96

Example 3: $1,000,000 Home

  • Assessed Value: $1,000,000
  • Homestead Credit Applied: -$3,000 (example, requires application)
  • Net Taxable Value: $997,000
  • Tax Rate: $0.615 per $100
  • Annual Tax: $6,131.55
  • Monthly Escrow: $510.96

Note: Tax credits shown are examples and require annual application. Actual credits available vary based on eligibility. Rates may be higher in areas with additional special district assessments.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Montgomery County require borrowers to maintain an escrow account for property tax payments, particularly for loans with less than 20% down payment. Your lender collects monthly escrow payments equal to 1/12 of your estimated annual property tax bill, plus insurance premiums. The lender typically adds a cushion of 2-3 months of payments to ensure adequate funds are available when taxes are due.

Property taxes in Montgomery County are due on May 10 and November 10 of each year. If these dates fall on a weekend or holiday, the deadline extends to the next business day. Your lender will pay these installments directly to the County Treasurer from your escrow account. It's important to verify that payments are made on time, as you remain ultimately responsible for ensuring taxes are paid even when using escrow. Lenders must provide annual escrow statements showing account activity and any required adjustments to monthly payments.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
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Section 6

Frequently Asked Questions

Q: When are property taxes due in Montgomery County? A: Property taxes are due on May 10 and November 10 each year. If these dates fall on a weekend or holiday, the deadline is extended to the next business day. Current year taxes must be paid by February 28, 2026.

Q: What tax credits are available and do I need to apply? A: Montgomery County offers a Supplemental Homeowners Property Tax Credit in addition to state programs. Most tax credits require annual application and are NOT automatic. Contact the County Assessor's Office for specific eligibility requirements and application procedures.

Q: How does the Homestead credit work? A: The Homestead credit typically caps annual assessment increases (often at 10% or similar) rather than reducing market value. This credit requires filing an application and must be renewed according to program requirements. It does not reduce your home's assessed value but limits how much it can increase year-over-year.

Q: How often are properties reassessed? A: Indiana law requires properties to be assessed annually, though not all properties receive physical inspections each year. The County Assessor's Office uses statistical analysis and market data to adjust assessments between detailed reviews.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with the Montgomery County Property Tax Assessment Board of Appeals within specific deadlines, typically within 45 days of receiving your assessment notice. Contact the Assessor's Office for current appeal procedures and forms.

Q: What are the penalties for late payment? A: Late payments incur penalties and interest charges. Contact the Montgomery County Treasurer's Office for current penalty rates and payment options if you've missed the deadline.

Q: Can I pay property taxes online? A: Yes, Montgomery County offers online payment options through their official website. You can also fill out their online form for various property tax services and inquiries.

Q: Why is my tax rate different from my neighbor's? A: Tax rates vary based on special taxing districts that may include school corporations, library districts, fire protection services, and other local improvements. Two properties on the same street might fall into different district boundaries, resulting in different total tax rates.

Verified Sources

Backed by 9 Official Government Sources

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

01
County
Tax Rates - Montgomery Countymontgomerycountync.gov
02
Tax Doc
2025 Tax Rate Chart_ad copy.xlsxmontgomerycounty.in.gov
03
Management & Budgetmontgomerycountyva.gov
04
County
Tax Due Date - Montgomery County, Indiana - IN.govmontgomerycounty.in.gov
05
County
Property Tax Due Date - Montgomery County, Indiana - IN.govmontgomerycounty.in.gov
06
Tax Doc
Property Taxes Deadline Extendedmontgomerycountyva.gov
07
Tax Doc
Supplemental Homeowners Property Tax Creditmontgomerycountymd.gov
08
Convention & Visitors CommissionADA/Title VICentral ...montgomerycounty.in.gov
09
County
Montgomery County Property Tax Credit Bill 03-25 Testimonytakomaparkmd.gov
All sources verified as of 2025 Tax Year

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