IN · #17 by population

Buying a home in Indiana

Costs and rules that are specific to Indiana. Main city: Indianapolis.

In short

Indiana has no real estate transfer tax, does not require an attorney at closing and requires a seller disclosure form. It forecloses through the courts and is not a community property state.

Calculate for Indiana

If you buy

Indiana state transfer tax

Indiana has no real estate transfer tax. Change the price: the amount is recalculated instantly.

Price$243,500
State transfer tax$0
Share of the price—

Default price: the Indiana median value of owner-occupied homes, $243,500 (Census ACS 2024). Rule: No tax is calculated on the price; the fees are flat. Who pays: Nobody pays a transfer tax. The county pages do not say who pays the fees; the purchase contract decides. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. Indiana transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Indiana state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Indiana in short

Is there a real estate transfer tax in Indiana?

Indiana has no real estate transfer tax in its tax code. A deed transfer costs flat fees instead. In Marion County that is $10 per parcel and $20 per sales disclosure form to the Assessor plus $35 per document to the Recorder.

Full Indiana guide · Compare all 50 states

What closing costs does Indiana law set?

Indiana has no real estate transfer tax and no official typical closing-cost total. Marion County deed fees total $65, and filed title charges run $700 to $1,035 for a $250,000 purchase with a loan.

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How is property tax calculated in Indiana?

Indiana caps homestead property tax at 1% of gross assessed value, and for taxes payable in 2026 the standard homestead deduction is $48,000 plus a supplemental deduction of 40% of the remainder, with the standard deduction phasing out to $0 by 2031. 2026 bills are due May 11 and November 10, and an assessment appeal is due June 15 if the Form 11 notice was mailed before May 1.

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What is the deadline to appeal a property tax assessment in Indiana?

In Indiana, contact your county assessor and file your assessment appeal by June 15 if your Notice of Assessment (Form 11) was mailed before May 1. A notice mailed on or after May 1 carries a later deadline printed on the notice.

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Do you need a real estate attorney to close in Indiana?

The Indiana statutes read do not require an attorney to close a home sale, although engaging in the business of a practicing lawyer without admission is a Class B misdemeanor (IC 33-43-2-1) and a lender or contract may still require one.

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What must a home seller disclose in Indiana?

An Indiana owner of a one-to-four-unit home must complete and sign the state disclosure form and give it to the buyer before an offer is accepted (IC 32-21-5-10). If a defect is disclosed only after acceptance, the buyer has two business days to cancel in writing.

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How does foreclosure work in Indiana?

Foreclosure in Indiana goes through a court: for a covered owner-occupied home loan the lender must mail a pre-suit notice at least 30 days before filing, and the sheriff cannot sell for three months after the complaint is filed. The owner can redeem the home until the sale.

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What first-time home buyer programs does Indiana offer?

In Indiana, the Indiana Housing and Community Development Authority (IHCDA) gives 5% of the home price as down payment assistance with its First Step program and 2.5% or 3.5% with Next Home, as a 0% second mortgage that is not forgivable.

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How much tax when you sell a home in Indiana?

The federal rule is the same in Indiana as in every state: if you owned and lived in the home as your main home for at least 2 of the last 5 years, the first $250,000 of gain is excluded, $500,000 for a married couple filing jointly (Section 121, IRS Publication 523). Bought $400,000, sold $750,000: a single owner has $100,000 of taxable gain, $15,000 of federal tax at the 15% long-term rate; a couple filing jointly owes nothing. Indiana income tax on the gain is not computed here.

Capital gains on a home sale

Indiana guides

Indianapolis

Buying a home in Indianapolis, Indiana

Professionals in Indiana

All states · Federal guides