By Andi Anderson
Every spring, Indiana homeowners receive a TS-1 form in the mail. This one-page document from the county treasurer helps explain how property taxes are calculated.
Although it may seem confusing at first, understanding a few key points can make it easier to know how your bill is created.
At the top of the form is the assessed value, which is the estimated market value of your home. This value is set by the county assessor and represents what your house would likely sell for in the current market.
From this gross assessed value, deductions are subtracted. These deductions are designed to lower the amount of your home’s value that is taxed. Homeowners receive two major deductions: the standard deduction, which is a flat $48,000, and the supplemental deduction, which is 37.5% of the value that remains after subtracting the standard deduction.
For example, if your home is valued at $200,000, the $48,000 standard deduction comes off first, leaving $152,000. Then, 37.5% of that remaining amount—$57,000—is subtracted as the supplemental deduction. Together, these deductions lower your taxable value to $95,000.
Once deductions are applied, local tax rates are used to calculate the amount you owe. These rates vary depending on where you live and help fund local services like schools, fire departments, and road maintenance.
Though the TS-1 form may look intimidating, it provides a useful summary of how your property tax is determined. Knowing how the numbers are calculated can help you better understand your bill and plan your household budget.
Understanding your Indiana property tax is key to being a well-informed homeowner. The TS-1 form is your guide to making sense of this yearly responsibility.
Photo Credit: pexels-karolina-grabowska
Categories: Indiana, Government & Policy