Franklin Township Property Taxes

What Every Homeowner on Indy’s Southeast Side Should Know in 2026

If you live in Franklin Township — or you’re thinking about buying here — there’s something you should know for years, homeowners in this corner of Marion County have paid some of the lowest property tax rates in the entire county. It’s one of the quiet reasons families keep moving to Franklin Township and the surrounding Southside ZIPs like 46237, 46239, and 46259, and it’s worth understanding before you buy, sell, or just budget for the year ahead.

But 2026 brings the biggest shake-up to Indiana property taxes in more than a decade, and Franklin Township homeowners are going to see real changes on their bills. We’ve been helping families buy and sell homes on the Southside for over 30 years, and we get property tax questions every week. So we pulled it all together in one place.

Here’s what you need to know.

Why Franklin Township Has Historically Had the Lowest Tax Rate in Marion County

Marion County has nine townships — Center, Decatur, Franklin, Lawrence, Perry, Pike, Warren, Washington, and Wayne — and each one has its own school district with its own tax rate. The single biggest piece of any Indy area property tax bill is the school levy, which is why tax rates can vary so much from one side of town to the other.

Franklin Township’s rate has been unusually low for one specific reason: it’s the only one of eleven Marion County school districts that hasn’t passed a voter-approved property tax referendum. The Franklin Township Community School Corporation has asked voters four separate times (in 2009, twice in 2011, and again in 2022), and every time the referendum has been turned down.

What does that mean on your bill? A referendum tax sits outside the state’s 1% property tax cap. When a district passes one — like Perry Township did in 2015 and renewed in 2022 — homeowners there pay the 1% cap plus an additional amount on top. Franklin Township homeowners just pay up to the cap.

That’s also why you’ll see Franklin Township has leaned harder on residential property tax over the years as farmland has been developed. The township’s population nearly doubled between 2000 and 2020 — from about 32,000 to nearly 66,000 — making it Marion County’s fastest-growing township. More rooftops mean more homes carrying the load.

Indiana’s “1-2-3” Tax Cap System — Your Best Friend as a Homeowner

Before we get into the numbers, here’s the foundation every Indiana homeowner should understand. Indiana’s constitution caps property tax bills at fixed percentages of the gross assessed value of your property:

These are called the “circuit breaker caps,” and they kick in automatically. You don’t apply for them. If you own a home in Franklin Township with a gross assessed value of $400,000 and it’s your primary residence, your base property tax bill can’t legally exceed $4,000 per year — no matter how high local rates climb.

The one exception: voter-approved referendum taxes sit outside the cap. Since Franklin Township hasn’t passed one, homeowners here are protected by the full 1% cap.

How Your Franklin Township Property Tax Bill Actually Gets Calculated

Here’s the order of operations. We’ll walk through it with a realistic example — let’s say a $400,000 home in Franklin Township that you live in as your primary residence, tax year 2025 pay 2026.

• Step 1: Gross Assessed Value. The Marion County Assessor sets this number based on market sales data for your area. For example, let’s say it lands at $400,000.
• Step 2: Standard Homestead Deduction. This is the biggest single deduction for any Indiana owner-occupant. For 2025 pay 2026, it’s $48,000 (it drops to $40,000 for 2026 pay 2027 as part of the new phase-down — more on that below). Subtract it.
  • $400,000 − $48,000 = $352,000
• Step 3: Supplemental Homestead Deduction. This is 40% of the assessed value remaining after the standard deduction.
  • $352,000 × 40% = $140,800 deduction
  • $352,000 − $140,800 = $211,200 net assessed value
• Step 4: Apply the local tax rate. This is where Franklin Township’s low rate historically helps you. The rate is applied per $100 of net assessed value and gets multiplied through.
• Step 5: Apply the 1% cap. If the calculated tax exceeds 1% of your $400,000 gross assessed value ($4,000), the cap credit kicks in and brings you back down.
• Step 6: Apply for the new Supplemental Homestead Credit. This is new for 2026 — a 10% credit on your tax liability, capped at $300 maximum. Applied automatically if you have the homestead deduction on file.

So for our $400,000 Franklin Township homeowner, a tax bill near the cap would be about $4,000, with another $300 knocked off for the new credit — landing somewhere in the $3,700 range. Your exact bill will depend on the current township rate, which is set each year by the Department of Local Government Finance.

What’s Changing in 2026 — Senate Enrolled Act 1

The Indiana Legislature passed SEA 1 in 2025, and it’s reshaping how property taxes work for the rest of the decade. Here’s what Franklin Township homeowners need to watch:

The Homestead Deduction Is Phasing Down

The $48,000 standard homestead deduction shrinks to $40,000 for 2026 pay 2027 and continues stepping down through 2030. This sounds bad, but there’s a tradeoff…

The Supplemental Deduction Is Phasing Up

The 40% supplemental deduction is climbing on a schedule that will shield roughly 66.7% of assessed value from taxes by 2031. For most homeowners, the math works out similarly or slightly better over the long run — you’re just shifting where the relief comes from.

New 10% Supplemental Homestead Credit

Starting in 2026, if you have the homestead deduction on file, you automatically get a credit worth 10% of your tax liability, up to $300 off your bill. No application is needed.

Over 65 Deduction Became the Over 65 Credit

If you’re 65 or older, what used to be a deduction is now $150 credit applied directly to your tax bill. Income limits have gone up too — $60,000 AGI for single filers, $70,000 for joint filers. The new credit has no cap on your home’s assessed value, which is a meaningful win for seniors who’ve seen their homes appreciate.

If you already had the Over 65 Deduction, most counties are automatically converting you, but some homeowners may still need to file with the Marion County Auditor by January 15. If you’re 65+ and not sure where you stand, call us — we’ll help you sort it out.

Expanded Veteran Benefits (HEA 1427)

Veterans with service-connected disabilities can now qualify for deductions ranging from 50% to 100% of their home’s assessed value, depending on their disability rating. If you or a family member served and you haven’t filed for this, the savings can be substantial.

Deductions Every Franklin Township Homeowner Should Be Claiming

Here’s the short list. If any of these apply to you and you haven’t filed, you’re leaving money on the table.

Homestead Standard Deduction. Owner-occupied primary residence. This one also unlocks your 1% tax cap, so it’s doubly important. File Form HC10 (State Form 54730) with the Marion County Auditor. New home buyers usually claim this through the Sales Disclosure Form at closing.

• Supplemental Homestead Deduction. Automatic once the standard deduction is on file.

• Over 65 Credit. $150 off your bill for qualifying seniors. Requires AGI under $60,000 single / $70,000 joint.
• Over 65 Circuit Breaker Credit. Stricter income limits but powerful — it caps your tax increase at 2% per year, no matter what happens with assessed values.
• Disability/Blind Deductions. $12,480 deduction for qualifying residents.
• Veteran Deductions. Various amounts depending on service-connected disability status.
• Mortgage Deduction. Note: this one was repealed in 2022, but its value was rolled into the higher Standard Homestead Deduction, so you’re not losing out.

Deadlines matter most of these must be filed with the Marion County Auditor by January 15 of the year the taxes are first due.

When Are Property Taxes Due in Marion County?

Indiana property taxes are paid in two installments every year:

• Spring installment: May 10
• Fall installment: November 10

The Marion County Treasurer mails the bill each spring, usually in April. You can pay online at indy.gov, by mail, in person at the Marion County Treasurer’s office, or through your mortgage company if your taxes are escrowed (which they are for most homeowners with a mortgage).

If your taxes are escrowed and you’re seeing your monthly payment jump, it’s often because the assessed value on your home went up and the escrow account is catching up. That’s normal, and it’s worth understanding before you get blindsided by a payment increase.

How to Appeal Your Assessment If It Seems Too High

If your assessed value looks out of line with what homes are selling for in your neighborhood, you have the right to appeal. Here’s how:

1. Check your notice of assessment. You have 45 days from the date on the notice to file an appeal.
2. Gather comparable sales. Pull three to five recent sales of similar homes in your area — this is where we can help you, at no cost. We’ll pull real comps from the MLS.
3. File Form 130 with the Marion County Assessor.
4. Meet with the assessor. Most appeals get resolved at this informal stage.
5. Escalate if needed to the Property Tax Assessment Board of Appeals, and beyond if necessary.

The strongest basis for an appeal is a gap between your assessed value and what comparable homes have sold for recently. If you think your assessment is off, reach out to us. we help clients pull comps for appeals all the time, and it’s something we’re happy to do whether you’re a past client, future client, or just a neighbor.

Frequently Asked Questions

What’s the property tax rate in Franklin Township?

• Franklin Township has historically had the lowest property tax rate in Marion County because it has not passed a voter-approved school referendum. Marion County’s overall effective property tax rate is about 0.93%, and Franklin Township typically runs below that. Rates are set each year by the Department of Local Government Finance, so check your current bill or the DLGF website for the exact number.

How much are property taxes on a $400,000 home in Franklin Township?

• For an owner-occupied primary residence, your tax bill is capped at 1% of gross assessed value — so no more than $4,000 before the new 10% Supplemental Homestead Credit brings that down by up to $300. Expect a bill about $3,500–$3,800 for a typical $400,000 home, depending on the year’s actual rate.

When are Marion County property taxes due?

• May 10 (spring installment) and November 10 (fall installment) each year.

Does Franklin Township have a school tax referendum?

• As of this writing, no. Franklin Township Community School Corporation is the only one of eleven Marion County school districts that has not passed a property tax referendum.

How do I apply for the Homestead Deduction?

• File Form HC10 (State Form 54730) with the Marion County Auditor by January 15 of the year your taxes are first due. If you’re buying a home, you can also claim it on the Sales Disclosure Form at closing.

I’m over 65. Did the Over 65 Deduction go away?

• The deduction was replaced in 2026 with an Over 65 Credit — a $150 direct reduction of your tax bill. Income limits were raised to $60,000 AGI for single filers and $70,000 for joint filers, and the assessed value cap was removed.

Can I appeal my property tax assessment in Marion County?

• Yes. You have 45 days from the date on your assessment notice to file Form 130 with the Marion County Assessor’s office.

Your Southside Real Estate Team

Property taxes are just one piece of what makes Franklin Township such a good place to buy a home. The low tax rate, the strong sense of community, the rural-meets-suburban feel, the continued new construction — it all adds up to one of the best values on the Southside.

If you’re thinking about buying or selling in Franklin Township, or you just have a question about how these 2026 tax changes affect your situation, we’d love to talk. We’ve helped families on the Southside navigate this market for over 30 years, and we apply what we call the “mother test” to every conversation — we tell you what we’d tell our own mother.

David C Brenton

DAVID BRENTON’S TEAM

4741 E Stop 11 Rd, Indianapolis, IN 46237

317-882-7210 | davidbrentonsteam.com

This article is for general informational purposes. Property tax laws and rates change regularly. For specifics on your home, contact the Marion County Auditor’s office, the Marion County Assessor’s office, or give us a call — we’re happy to help you sort it out.

See other articles like this on our Team Blog.