April 30 marked an important milestone in Indiana’s property assessment tax cycle as local assessors finalized and mailed Notice of Assessment forms (Form 11) for the January 1, 2026 assessment update to taxpayers statewide. This annual process reflects updated property valuations and is reflective of broader real estate market trends across the state. For the 2026 assessment date, those valuations show a notable increase, with gross assessed value for real property rising approximately 11% overall statewide. This growth reflects the ongoing strength in Indiana’s housing market, even amid broader economic shifts.
Several key factors are driving this increase in assessed values. Residential real estate continues to perform strongly in most parts of the state, with home prices remaining steady or continuing to climb, coupled with a limited property supply. These conditions have led to increased property values at both the state and national levels. Importantly, assessments for 2026 rely primarily on market data from 2025, meaning trends in housing demand and pricing from the prior year are what is directly influencing current valuations that will ultimately be reflected in tax bills paid in 2027.
These market conditions are reflected in updated statewide cost tables and locally updated land orders, which are contributing to higher assessed values. Many counties have adopted updated land orders, which adjust the base value assigned to land and accordingly impacts overall property valuations. Additionally, the Indiana Department of Local Government Finance updated the cost tables for the January 1, 2026 assessment date. These tables are designed to reflect current construction and replacement costs, which have increased in recent years. Indiana is a market-value-in-use assessment system, which means maintaining accurate cost tables should ensure assessments align with real-world economic conditions.
Despite any increases in assessed values, it is important to note that higher assessments do not automatically translate into higher property tax bills. Property tax rates are determined by a formula that compares local government tax levies with total net assessed value, meaning the relationship between those factors ultimately determines the rate applied to taxpayers’ assessed values. A local unit’s tax levy is determined locally based on funding needed for local government. Because property taxes are paid a year in arrears, the 2026 assessments will affect tax bills due in 2027, with local governments setting their levies during the fall of 2026.
