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Updated 2025 Tax Year

Vanderburgh County
Property Tax Guide

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

10 Official Sources
8 min read
Quick Facts
Tax Rate
0.73% base county rate, total rates typically 1-1.5% including all taxing districts
Exemptions
5+ Available
Section 1

How Property Tax Works

Vanderburgh County, Indiana operates on a property tax system that funds essential local services including schools, public safety, infrastructure, and county government operations. The county uses an assessed value system where properties are typically assessed at fair market value, with taxes calculated by applying the local tax rate to the net assessed value after any applicable tax credits.

The effective tax rate in Vanderburgh County varies by location within the county due to different combinations of special taxing districts, school corporations, and municipal boundaries. For the 2025 tax year, the base county rate is 0.0072940 (approximately 0.73%), but total rates typically range from 1% to 1.5% when including all taxing units such as school districts, townships, libraries, and other special districts. Property owners should note that their specific tax rate depends on which taxing districts serve their property location.

Section 2

What Makes Up Your Tax Bill

FY 2025 Property Tax Rates (Pay 2025)

Taxing UnitRatePercentage of TotalDescription
Vanderburgh County0.007294020.89%County general operations, services
Knight Township0.00016900.48%Township services (example district)
School DistrictVaries by district40-50% typicalLocal school corporations
Library DistrictVaries by district3-5% typicalPublic library services
MunicipalVaries by city10-20% typicalCity services (if applicable)

Note: Total tax rates vary significantly by property location within Vanderburgh County based on which school district, township, municipality, and special districts serve the property. The rates shown are examples from specific taxing units. Contact the Vanderburgh County Auditor for your property's specific rate combination.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Vanderburgh 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 taxes in Vanderburgh County are additional property tax assessments that occur when there are changes to a property's assessed value during the tax year. Common triggers include new construction, major improvements, ownership transfers that prompt reassessment, or corrections to the original assessment.

When supplemental taxes are levied, they are calculated by applying the current tax rate to the difference between the new assessed value and the original assessed value, prorated for the portion of the tax year the change was in effect. For example, if a $50,000 home addition is completed in January and assessed mid-year, the supplemental tax would be calculated on the $50,000 increase in assessed value, multiplied by the applicable tax rate, for the remaining months of the tax year. Property owners receive a separate supplemental tax bill in addition to their regular annual property tax statement.

Example Calculation

Example 1: $300,000 Property

  • Assessed Value: $300,000
  • Homestead Standard Deduction: $45,000 (requires application)
  • Net Taxable Value: $255,000
  • Tax Rate: 1.2% (estimated total rate)
  • Annual Tax: $3,060
  • Monthly Escrow: $255

Example 2: $600,000 Property

  • Assessed Value: $600,000
  • Homestead Standard Deduction: $45,000 (requires application)
  • Net Taxable Value: $555,000
  • Tax Rate: 1.2% (estimated total rate)
  • Annual Tax: $6,660
  • Monthly Escrow: $555

Example 3: $1,000,000 Property

  • Assessed Value: $1,000,000
  • Homestead Standard Deduction: $45,000 (requires application)
  • Net Taxable Value: $955,000
  • Tax Rate: 1.2% (estimated total rate)
  • Annual Tax: $11,460
  • Monthly Escrow: $955

Important Note: These examples use estimated combined tax rates. Actual rates vary by specific location within the county. The Homestead Standard Deduction and other tax credits require separate applications through the County Auditor's office and are not automatically applied.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Vanderburgh County require borrowers to maintain an escrow account for property tax payments, especially when the loan-to-value ratio exceeds 80%. The lender collects monthly payments equal to 1/12th of the annual property tax bill along with the mortgage payment, then pays the taxes directly to the Vanderburgh County Treasurer when due.

Property taxes in Vanderburgh County are paid in two installments: the first half is due on the second Monday in May (May 12, 2025), and the second half is due on November 10, 2025. Lenders typically pay each installment before the due date to avoid penalties. Property owners should verify their escrow account balance annually and can request an escrow analysis from their lender. If taxes increase due to reassessment or rate changes, lenders may adjust monthly escrow payments and may require a one-time payment to cover any shortage.

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 Vanderburgh County? A: For the 2025 tax year, property taxes are due in two installments: May 12, 2025, and November 10, 2025. Payments are made to the Vanderburgh County Treasurer.

Q: What is the Homestead Standard Deduction and how do I apply? A: The Homestead Standard Deduction provides a tax credit of up to $45,000 or 60% of gross assessed value (whichever is less) for primary residences. This credit also caps annual assessment increases. You must file an application with the Vanderburgh County Auditor's office - it is not automatic.

Q: What other tax credits are available? A: Indiana offers various tax credits including Senior Citizens Deduction, Disabled Veterans Deduction, and Over 65 Deduction. All require separate applications through the County Auditor. Contact the auditor's office to determine eligibility and obtain application forms.

Q: How often are properties reassessed? A: Indiana law requires annual updates to assessments, but comprehensive reassessments typically occur every few years. The County Assessor's office maintains current market values and may adjust assessments based on sales data and market trends.

Q: What happens if I pay my taxes late? A: Late payments incur penalties and interest charges. Penalties begin accruing after the due dates, and prolonged non-payment can eventually lead to tax sale proceedings.

Q: Can I pay my property taxes online? A: Yes, Vanderburgh County offers online payment options through the County Treasurer's website. You can pay by electronic check or credit card, though credit card payments may include processing fees.

Q: How do I appeal my property assessment? A: Property owners can appeal their assessment by filing a petition with the County Assessor within specific deadlines. If unsatisfied with that decision, appeals can proceed to the County Property Tax Assessment Board of Appeals.

Q: Why do tax rates vary within Vanderburgh County? A: Tax rates vary based on the combination of taxing districts that serve each property, including different school corporations, townships, municipalities, and special districts like libraries or fire departments.

Q: Do I need to reapply for tax credits every year? A: Most tax credits, once approved, continue automatically as long as you remain eligible and the property remains your primary residence. However, you should notify the auditor of any changes in circumstances that might affect eligibility.

Q: Where can I find my property's specific tax rate? A: Contact the Vanderburgh County Auditor's office or use their online property tax calculator to determine the exact tax rate for your property based on its location and applicable taxing districts.

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