The Lead Off
- Indiana’s total assessed property values rose nearly 10% statewide between 2025 and 2026.
- Residential property values grew 7.3%, the slowest category compared to commercial and industrial increases.
- Industrial property values saw the largest jump at 25.8%, according to state data.
INDIANAPOLIS, IND. (WOWO) Gross assessed values for commercial, industrial, and residential properties rose nearly 10% across Indiana from 2025 to 2026, according to new state data from the Department of Local Government Finance.
The increase is lower than the 19% statewide jump recorded between 2024 and 2025, but continues to reflect uneven growth across property types heading into the 2027 property tax cycle according to the Indiana Capital Chronicle.
Residential growth lags behind other sectors
State data shows residential property values increased 7.3% statewide in 2026 compared to the previous year.
That growth rate was below the overall statewide average of 9.7% across all property categories.
Residential properties account for more than three-quarters of Indiana’s total assessed value, including land with and without structures.
Commercial and industrial values surge
Commercial property values increased 15% statewide, while industrial properties rose significantly higher at 25.8%, according to the Department of Local Government Finance.
Officials say the differences reflect how business property values are calculated, including reliance on cost tables and depreciation models when market data is limited.
The agency notes that industrial and commercial sales data is often less consistent than residential comparisons, which can affect valuation trends.
Statewide variation in assessments
State officials say property value changes varied widely by county.
Some counties experienced double-digit growth across all property types, while others saw far smaller increases.
- Warren County saw a 29.4% overall increase
- Huntington County recorded a 1.3% increase
Officials also noted that certain outlier increases, including triple-digit changes in some industrial vacant properties, may distort statewide comparisons.
Property tax system under scrutiny
Gov. Mike Braun has raised concerns about Indiana’s property assessment system, telling reporters the structure should be reviewed.
“The whole assessment system is something that needs to be looked at,” Braun said, adding that he has questioned whether the process is “opaque.”
State lawmakers continue to implement provisions from 2025 property tax reform legislation intended to reduce homeowner tax bills.
The law includes an estimated $1.2 billion in homeowner property tax relief over three years through 2026 to 2028, including a 10% homestead credit capped at $300.
Resident impact and appeals
Some homeowners say rising assessments continue to affect affordability despite state tax relief measures.
One Fort Wayne resident described significant increases in recent years and said she considered leaving her home due to rising tax costs.
The Department of Local Government Finance says assessment values are only one component of property tax bills, which also depend on local levies and credits.
The Takeaway
- Indiana property values rose nearly 10% statewide between 2025 and 2026, marking a slowdown from the previous year’s 19% surge but still reflecting broad increases across all property types.
- Industrial and commercial properties experienced the highest growth, while residential values increased at a slower 7.3% rate despite making up the majority of the state’s tax base.
- State leaders and local officials continue to debate the fairness and transparency of Indiana’s assessment system as new tax relief measures are phased in.
Next steps
The Department of Local Government Finance will use the updated assessed values to determine property tax obligations for bills due in 2027. State officials are expected to continue reviewing the impact of recent tax reforms as counties adjust to new valuation trends and implementation rules.
