Over the past few years, Hoosier homeowners have felt the pressure of rising property tax bills. As home values and local levies have climbed, household budgets have tightened, especially for families and seniors living on fixed incomes.
Indiana has built a strong reputation as one of the most taxpayer-friendly states in the country, ranking 10th in the nation for tax competitiveness. Recently, the General Assembly took steps to provide immediate, meaningful relief for taxpayers and create a more transparent and accountable property tax system while ensuring local communities can continue meeting critical needs and investing in the future.
In 2025, Indiana lawmakers delivered more than $1.3 billion in property tax relief beginning this year through 2028. At the same time, reforms were passed aimed at strengthening accountability at the local level. Senate Enrolled Act 1 places new guardrails on local government finance and encourages more responsible spending practices. It also reduces the total amount of local income taxes local governments can collect, helping ensure taxpayers have a stronger voice when additional revenue is requested.
An accountable tax system starts with taxpayers knowing where their money goes. The state of Indiana does not collect a single dollar of your property tax bill, so every cent stays in your community, paying for the classrooms, fire trucks, ambulances, roads and libraries local to you.
The Indiana Department of Local Government Finance reports that the average property tax dollar breaks down to 42 cents for school corporations, 24 cents for municipalities, 19 cents for county government, 7 cents for special districts such as fire and waste management, 4 cents for libraries and 3 cents to township government.
That is also why the levies on your property tax bill are set close to home. The General Assembly sets the rules, such as levy growth limits, but it does not set your community's local budget. County councils, city and town councils, township boards and school boards set their own budgets and decide how much to ask for each year. Most local units of government hold their budget hearings in September and October, ahead of the Nov. 1 deadline to adopt an annual budget. As your state representative, I encourage you to attend these meetings. You can find your local unit's proposed budget and hearing date at budgetnotices.in.gov.
The ballot box is the other place where your voice as a resident and taxpayer carries. Under the 2025 reforms, local and school referendums now appear only on general election ballots, when the most voters are at the polls to make their voices heard about local taxes.
However, there is more work to be done. As we approach the 2027 legislative session, lawmakers will continue examining how these reforms are taking effect, listening to taxpayers across the state and looking for ways to make this system more transparent and affordable for taxpayers.
I remain committed to working with fellow lawmakers, local leaders and taxpayers to continue reducing the tax burden on hardworking Hoosiers and ensuring our communities remain strong places to live, work and raise a family. If you have questions, please contact my Statehouse office at 317-232-9986 or visit in.gov/h42.
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State Rep. Tim Yocum (R-Clinton) represents House District 42, which includes
all of Parke and Vermillion counties, and portions of Clay, Fountain and Vigo counties.
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