New data from the Indiana Department of Local Government Finance reveals a significant 12% increase in gross assessed values for commercial, industrial, and residential properties across the state from 2024 to 2025.

This rise is a regular part of the annual assessment process, which ensures accountability for county assessors. While the overall increase in property values might signal higher tax bills, Indiana lawmakers have enacted a new tax plan, Senate Enrolled Act 1, that aims to provide substantial relief to homeowners.

This legislation introduces a new 10% credit on every homestead’s property tax bill, capped at $300, which is projected to save Hoosier homeowners a collective $1.2 billion over the next three years (2026-2028).

However, the new tax plan also brings a shift in the state’s property tax landscape. A key provision in the legislation will lower the base rate for agricultural land assessments. This adjustment, while beneficial for farmers who have seen consistent increases in their property taxes in recent years, could potentially shift a greater portion of the property tax burden onto commercial and industrial properties.

Commercial assessed values, for instance, saw a 16.07% increase, outpacing the 15.59% rise in industrial values and the 10.42% increase in residential properties.

This strategic recalibration of the tax system reflects lawmakers’ efforts to address concerns about rising property taxes, particularly for residential homeowners. While assessed values continue to grow, the rate of increase for residential properties is showing signs of slowing, offering a glimmer of hope for more stable property tax bills in the future.