by: Leslie Bonilla Muñiz
Indiana Capital Chronicle
Gross assessed values for commercial, industrial and residential properties collectively rose nearly 10% across Indiana from 2025 to 2026 in the latest state data, less than the 19% jump recorded between 2024 and 2025.
Residence value grew slower, despite complaints from struggling homeowners— and skepticism from state leaders of Indiana’s market-based assessment system.
“The whole assessment system is something that needs to be looked at,” Gov. Mike Braun told reporters— after saying he’d like to “figure out” if the process is “opaque” last month.
Assessed value for properties with residential structures grew 7.3% statewide in 2026 compared to the previous year— lower than the 9.7% jump recorded across all property types.
Properties with commercial buildings experienced a 15% hike in assessed value, while their industrial counterparts experienced a 25.8% increase.
That’s according to assessed value comparison data assembled by the Department of Local Government Finance for property taxes due and payable in 2027. The information is sourced from ratio studies performed annually by the state’s 92 county assessors.
Residential properties make up more than three-quarters of the assessed value in the state comparison, with commercial representing 16% and industrial 7%. That includes land with and without structures, which the state respectively calls improved and vacant.
Agricultural land is assessed differently, with a base rate that accounts for capitalized net operating income and net cash rent across multiple years.
Senate Enrolled Act 1 is expected to save homeowners a collective $1.2 billion in property taxes over three calendar years, from 2026 through 2028, a state fiscal analysis. It does so largely by creating a credit for 10% off every homestead’s bill, up to $300 each.
Statewide, the owners of commercial and industrial properties experienced higher percentage changes in assessed value, likely after the latest updates to the Department of Local Government Finance’s cost tables. Sales information for these properties is “less reliable and less available” than residential properties, according to the agency’s assessment guidelines, so the tables are used to estimate the replacement cost of business structures minus depreciation.
The assessed values for properties without structures increased faster than those with, statewide. Agency spokeswoman Jenny Banks said several outlier counties with triple-digit increases — as high as Boone County’s 956% increase for industrial vacant properties — “could distort changes around the State.”
And while most Indiana counties experienced double-digit growth across all property types, some were significantly above the 9.7% state average— like Warren County, at 29.4% — and some were far below, like Huntington County, at 1.3%.
According to the DLGF, Jackson County assessed value went up 16.5% which led the area. Scott County’s AV increased 15.5% and Washington County’s AV rose 12.7%. Jennings County went up 13.7%, Bartholomew County went up 11.5%, Lawrence County increased 10.5% ad Brown County had just a 6.9% increase.
“I think that’s why we ultimately always highly suggest local control,” said Jamie Bolser, the director of government affairs for the Association of Indiana Counties.
“Each individual tax base is so unique, and if you think about even an individual county, certain portions are so unique within each county,” she added.
Local units of government are expected to lose out on a projected $1.5 billion over the first three years under Senate Enrolled Act 1, with public school corporations representing about half the total. But in exchange, the law caps total local income tax rates for all counties to 2.9%, down from 3.75%. Municipalities can now impose rates up to 1.2% within that county total. They previously had to get county officials on board to nab a local income tax.
Asked what she’d like to see from lawmakers come January, Bolser had one word: “Stability.”
“There’s been a lot of reform in a very small period of time,” she said, noting some provisions are still phasing in. “I think it’s always important to make data-informed decisions. … I think the dust needs to continue to settle, so that we can see what the results are.”
State leaders, however, are entertaining calls to eradicate property taxes entirely.
“Whenever you’re talking about doing something like that — which yes, is something to look at— how are you going to replace it?” Braun told reporters. “And … local governments and school districts can probably sharpen up their operation.”