Rental Property Taxes - How do you determine this?

Asked by jlantcliff, Indianapolis, IN Mon Jun 17, 2013

Hi. We are buying a home in Lawrence Township/Marion County and are going to rent our current home. How do we determine our taxes on the rental prop.?

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Peter Knight, Agent, Fishers, IN
Mon Jun 17, 2013

Property taxes in Indiana are capped at 1% of assessed value for owner occupiers, and 2% for rental property. If you are currently claiming your homestead exemption, the property taxes will approximately double when your home becomes a rental. Keep in mind that property taxes are paid a year in arrears so it will be next year before you see the change. But if you are determining rent, then figure on two times what you are paying now. Hope this helps.

Peter Knight
RE/MAX Ability Plus
(317) 529-4178
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Joe Mann, Agent, Indianapolis, IN
Mon Jun 17, 2013

So, you are buying a home and you are going to rent your current home? Right now, you probably have a couple of exemptions filed for your property taxes since it your primary residence. The largest exemption is the "homestead exemption." You can only file for this exemption when the house is your primary residence. That will fall off and your taxes will go up considerably. The property tax is based on the tax assessed value of the home.
If you'd like, you could email me your address and I will see what the assessed value is, which will give us a good idea of what the new rate will be.


Joe Mann
Realtor - Associate Broker
Century 21 Rasmussen Co., Inc.
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Avery Garrett, Agent, Carmel, IN
Mon Jun 17, 2013
If you are talking about purchasing a rental property it will come up on the MLS sheet. I would be happy to help you investigate.
If you are talking about renting a property, there are no taxes in addition to rent.

Avery Garrett
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