Assessed value is the assessor's opinion of your property's true tax value as of January 1. Net assessed value is what remains after deductions. The tax rate is the combined levy of every local unit, spread across each $100 of net assessed value. The circuit breaker then caps your bill at 1%, 2%, or 3% of gross assessed value. Every other term on a Form 11 or tax bill hangs off those four ideas.
This glossary defines each term in one to three sentences. Where one exists, it gives the controlling Indiana Code section and links to our longer guide. Statute text comes from the 2026 Indiana Code, Title 6. Valuation terms come from the DLGF's 2021 Real Property Assessment Manual and assessment guidelines glossary.
Valuation Terms: How Your Property Is Valued
Assessed value (gross vs. net)
For assessment dates after February 28, 2001, assessed value equals 100% of true tax value (IC 6-1.1-1-3). Gross assessed value is that full figure before any deductions. The caps are measured against it (IC 6-1.1-20.6-7.5(a)). Net assessed value is gross AV minus deductions and exemptions, and it is the figure your tax rate is applied to. The full process is in how Indiana assessments work.
True tax value
Indiana's legal value standard. The Code says it "does not mean fair market value" (IC 6-1.1-31-6(c)). For most property, the DLGF manual defines it as market value-in-use: the value of the property for its current use, as reflected by the utility the owner or a similar user gets from it.
Assessment date
The date as of which property is valued: January 1 for years after 2015 (IC 6-1.1-1-2; IC 6-1.1-2-1.5).
Annual adjustment (trending)
Each year that is not a reassessment year, assessors adjust values to recent sales using a DLGF-certified system (IC 6-1.1-4-4.5).
Cyclical reassessment
On top of trending, every parcel gets a physical inspection once every four years. The county's plan divides parcels into four groups of roughly 25% each (IC 6-1.1-4-4.2). The current cycle began July 1, 2026; see our 2027 reassessment prep guide.
CAMA
Computer-assisted mass appraisal: the software and statistical models that county assessors use to value thousands of parcels at once. See CAMA software explained.
Cost tables and location cost modifiers
Under the cost approach, a building's value is its replacement cost new, minus depreciation, plus land value. Replacement cost comes from DLGF cost schedules. Location cost modifiers, which the DLGF publishes for each annual adjustment, localize those costs by county. Read the 2026 cost-schedule reset.
Land base rate and land order
For farmland, the base rate is the statewide per-acre value used to assess agricultural land (IC 6-1.1-1-3.5), adjusted by soil productivity. See farmland base rate tactics. For residential, commercial, and industrial land, the county assessor sets land values and submits them to the PTABOA (IC 6-1.1-4-13.6). That schedule is commonly called the land order. See neighborhood land values.
Property class code
A three-digit DLGF code for the property's use. The first digit gives the class: 1 agricultural, 3 industrial, 4 commercial, 5 residential, 6 exempt, 8 utility. Code 510, for example, is a one-family dwelling on a platted lot (2021 manual, Appendix A). A wrong class code can put you under the wrong tax cap.
Ratio study
The DLGF's annual check of assessed value divided by sale price. The target is 100%, and uniformity is measured with statistics like the COD.
Notice, Bill, and Rate Terms
Form 11 (notice of assessment)
The notice an assessor must send when an assessment changes, including through an annual adjustment (IC 6-1.1-4-22). It matters because its mailing date sets your appeal deadline. See what to do with a 2026 Form 11.
Payable year
Indiana bills one year in arrears. Taxes assessed for a year are due in two equal installments on May 10 and November 10 of the following year (IC 6-1.1-22-9). So the January 1, 2026 assessment produces "pay 2027" bills. See when Indiana property taxes are due. A late real property installment paid within 30 days carries a 5% penalty. Otherwise the penalty is 10% (IC 6-1.1-37-10). See late payment rules.
Levy
The total property tax dollars a taxing unit (county, city, township, school, library) raises. Most operating levies are limited by a maximum levy that grows by a statutory growth quotient (IC 6-1.1-18.5-2, -3). See the levy growth quotient.
Tax rate and certified rate
A rate is expressed in dollars per $100 of net assessed value. The DLGF reviews local budgets and certifies the final rates and levies for each fund (IC 6-1.1-17-16). Marion County's 2026 certified rates ran from $2.4269 to $4.2369 per $100. See Marion County certified rates and the statewide rate table.
Taxing district
"A geographic area within which property is taxed by the same taxing units and at the same total rate" (IC 6-1.1-1-20). Two houses a block apart can sit in different districts, as the nine Marion townships show. See the tax bill guide.
Deductions, Credits, and Caps
Homestead standard deduction
A deduction from the assessed value of your principal residence. It is $48,000 for pay-2026 and $40,000 for pay-2027 (IC 6-1.1-12-37(c)), and once established it carries forward without refiling. See the homestead guide.
Supplemental homestead deduction
A percentage deduction from the AV left after the standard deduction (IC 6-1.1-12-37.5). For pay-2027 it is 46%. See the 2026-2031 phase-down schedule.
Credits
A credit subtracts dollars from the tax itself. A deduction subtracts value from AV. Key credits:
- SB 1 supplemental homestead credit: 10% of the homestead bill, capped at $300, applied automatically (IC 6-1.1-20.6-7.7). See how the $300 credit works.
- LIT property tax relief credits: a county local income tax of up to 1.25% that funds a percentage credit on bills (IC 6-3.6-5-6). Voter-approved referendum taxes are not eligible, and the chapter is set to expire December 31, 2028 (IC 6-3.6-5-7). See SB 1 and local income taxes.
- Over-65 ($150) and blind/disabled ($125) credits under IC 6-1.1-51.3, plus the over-65 circuit breaker (IC 6-1.1-20.6-8.5). See senior and disabled credits.
Circuit breaker (tax caps)
A credit that limits your bill to 1% of gross AV for a homestead. The limit is 2% for other residential property, long-term care property, and agricultural land, and 3% for nonresidential real and personal property (IC 6-1.1-20.6-7.5(a)). Taxes approved by voter referendum sit outside the caps (IC 6-1.1-20.6-7.5(b)). See caps explained.
Cap loss
The revenue local units lose because the circuit breaker credit reduces bills below what the certified rate would produce. See cap loss and IPS.
Abatement
A phased deduction for new investment in a locally designated economic revitalization area (IC 6-1.1-12.1). The schedule generally may not exceed 10 years (IC 6-1.1-12.1-17(b)). See Marion abatement phase-outs.
Referendum levy
A property tax approved by local voters, most commonly a school operating referendum (IC 20-46-1). It is billed outside the tax caps. See the November 2026 referenda preview.
TIF (tax increment financing)
A redevelopment commission freezes a base assessed value in an allocation area. Taxes on growth above that base go to the TIF district instead of the normal taxing units (IC 36-7-14-39). See TIF explained.
Tip
To tell whether a change came from value or rate, compare gross AV, net AV, and the certified rate on this year's and last year's bills. If your gross AV is flat but the bill rose, the cause is the levy or a lost deduction. Your assessment did not drive it.
Appeal Terms
Form 130
The Taxpayer's Notice to Initiate an Appeal, filed with the assessor. For real property it is due June 15 of the assessment year if the notice was mailed before May 1 (IC 6-1.1-15-1.1(b)). Objective errors, like the wrong owner or a garage that does not exist, go on page 2 and can reach back three years. The DLGF appeals page notes the old Form 133 was folded into Form 130. See the 2026 appeal guide.
PTABOA
The county Property Tax Assessment Board of Appeals: a 3- or 5-member board that hears appeals the assessor does not settle (IC 6-1.1-28-1). See PTABOA evidence.
Form 131 and the IBTR
You use Form 131 to petition the Indiana Board of Tax Review (IC 6-1.5) within 45 days of the PTABOA's determination (IC 6-1.1-15-3(d)). See PTABOA vs. IBTR and the IBTR online portal.
Indiana Tax Court
Judicial review of an IBTR final determination. You must file within 45 days of notice (IC 6-1.1-15-5(c)). See Tax Court burden of proof.
Sales disclosure form
The DLGF form that every party to a real property sale must complete before the deed is filed (IC 6-1.1-5.5-3). It feeds ratio studies and can double as a homestead application. See the sales disclosure guide.
Property record card and parcel number
The record card is the assessor's file on your land and buildings, the first thing to check before appealing; the parcel number ties every record together. See the property record card guide and Indiana parcel numbers.
Warning
Missing the June 15 deadline does not end every option. Objective errors on Form 130 page 2 can still be raised for up to three years. See what to do after a missed deadline.
Putting the Terms to Work
- Find your gross AV, net AV, deductions, and taxing district on your bill. Property lookup shows the parcel's assessment history side by side.
- Check the property class code and record card facts against reality.
- Confirm your homestead deduction is on file. Any new deduction or credit statements for pay-2027 are due January 15, 2027 (see the year-end checklist).
- If the value is wrong, put your evidence together for a Form 130 with tax appeal tools.
For every deduction and exemption Indiana offers, see the complete list.