Indianapolis Taxpayers: Know Your Rights Before Paying a Higher Property Tax Bill

Indiana Code § 6-1.1-15-10 Allows Taxpayers with a Timely Pending Assessment Appeal to Pay the Current Rate on the Prior Year’s Assessed Value

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At a Glance

Indiana Code § 6-1.1-15-10 allows taxpayers with a pending assessment appeal to pay taxes based on the prior year’s assessed value, not the higher contested amount, while the appeal works through the review process.
To use this protection, taxpayers must have filed a timely appeal and best practice is to notify the county treasurer and county auditor in writing when submitting payment, explaining the legal basis and the payment calculation.
The statute defers the tax liability. It does not eliminate it. Taxpayers who do not prevail on appeal will owe the difference, and taxing officials may require a bond if the appeal is not resolved by the final installment due date.

Taxpayers Facing a Spike in Assessed Value: The Law Offers Relief

For the January 1, 2025, assessment date, the Marion County (Indiana) Assessor’s Office added nearly $5.5 billion in assessed value to Indianapolis commercial and industrial properties. Another round of substantial assessment increases is already set in motion for 2026 Payable 2027 real property taxes. Higher tax bills due based on the 2025 assessment hikes are arriving in spring 2026. For many property owners, those bills will land long before any appeal has been decided.

Indiana Code § 6-1.1-15-10 was written for exactly this situation.

When a petition for review is pending before any board, including the Marion County Property Tax Assessment Board of Appeals (PTABOA), the Indiana Board of Tax Review (IBTR), or the Indiana Tax Court, the taxes tied to the contested assessment are not technically due until the appeal is finally resolved. In plain terms: if you have filed a timely appeal, you are not required to pay the full tax bill on an assessment you are actively challenging. While this article focuses on Indianapolis, this protection is available statewide. Taxpayers in other Indiana counties who have filed timely appeals of their assessments may invoke this statute on the same basis.

How the Statute Works: The Math behind the Protection

The statute does not allow taxpayers to simply hold payment while an appeal is pending. It sets a specific floor. For real property, the required interim payment is calculated using the immediately preceding year’s assessed value. You pay taxes on that prior-year figure, not on the higher disputed amount.

One point that often gets overlooked: the prior year’s assessed value is multiplied by the current year’s tax rate, not last year’s. The statute limits the assessed value used in the calculation. It does not affect the tax rate applied to it.

Consider a straightforward example. Suppose your property was assessed at $5,000,000 for January 1, 2024, and is now assessed at $8,000,000 for January 1, 2025, the value you are currently appealing. While the appeal is pending, your required payment is based on $5,000,000, multiplied by the current 2025 Payable 2026 tax rate, divided by the number of installments. The taxes on the additional $3,000,000 are not due until the appeal is resolved. For a Marion County property owner facing increases of this magnitude, the cash-flow difference while the dispute works through the review process can be substantial.

What the Statute Does Not Do

Three limitations deserve equal attention.

First, the protection is not available unless a timely appeal has been filed. For Indianapolis taxpayers challenging 2025 assessed values, that deadline is June 15, 2026. With the first tax installment due May 11, 2026, taxpayers who want to take advantage of this protection for the May installment need to have an appeal on file before that date.

Second, the statute defers the tax liability. It does not erase it. If the appeal goes in the assessor’s favor, the taxpayer owes the difference between the reduced payment and the full bill, potentially with interest if the final assessed value is determined to be higher than the value upon which payment was based. Plan for this contingency from the start, not after the appeal is decided.

Third, subsection (b) of the statute authorizes taxing officials or the Tax Court to require a bond or other security for up to the full contested tax amount if the appeal has not been resolved before the final installment due date. A bond is not automatic, but for appeals that stretch across multiple installment cycles, it is a genuine possibility and should be part of the planning conversation with your counsel.

Fourth, taxpayers with multiple years under appeal face an additional complexity. The statute refers to the “immediately preceding year’s assessment,” which points to the assessed value from the year immediately before the year under dispute, even if that prior year is itself under appeal. For example, a taxpayer with appeals pending for 2023, 2024, and 2025 would likely base the interim payment for 2025 taxes on the 2024 assessed value, notwithstanding that the 2024 assessment is also being contested. The interaction between multiple pending appeals and the statute’s prior-year calculation can be complex, and taxpayers in this situation should work through the analysis carefully with property tax counsel.

Notifying the Treasurer and Auditor: A Step You Should Not Skip

Paying a reduced amount without explanation creates unnecessary risk. Without notice, the difference between your payment and the face amount of the tax bill can appear as a delinquency, potentially generating penalties and interest on county records that defeat the purpose of the statute entirely.

Taxpayers invoking Indiana Code § 6-1.1-15-10, can mitigate this risk by sending a written letter to the county treasurer, with a copy to the county auditor, at the time payment is made. A well-drafted letter would identify the property, confirm that a timely appeal is pending, state the prior-year assessed value and current-year tax rate used in the calculation, specify the payment amount, and make clear that the payment is in full compliance with Indiana law. It should accompany the payment, not follow it.

This letter protects the taxpayer’s record, puts taxing officials on notice, and creates a clear paper trail if any question arises about the payment later.

When Specific Facts Change the Calculation

The examples and guidance in this article address a straightforward scenario: a single property with a prior-year assessed value that is not itself in dispute. Specific facts can significantly affect how Indiana Code § 6-1.1-15-10 applies in practice. Properties subject to a tax abatement or partial exemption, properties that were split or combined between assessment dates, properties with multiple consecutive years under appeal, and other circumstances unique to a given parcel can affect both whether the statute applies and how the interim payment is calculated. Property owners whose situations involve any of these factors should consult with a property tax attorney before submitting a reduced payment to confirm that the calculation and the notice to taxing officials are handled correctly for their specific property.

Final Thoughts

Indiana Code § 6-1.1-15-10 provides a real protection, but only for taxpayers who know it exists and follow its requirements correctly. With Marion County’s large 2025 assessment increases sending tax bills sharply higher in spring 2026, and a second round of base rate increases already set for 2026 Payable 2027 taxes, the financial stakes of inaction have rarely been higher for Indianapolis property owners.

Filing a timely appeal preserves your rights. Using Indiana Code § 6-1.1-15-10 correctly protects your cash flow while the appeal proceeds. Together, these tools allow property owners to contest inflated assessments without writing a check for the full disputed tax bill in the meantime. The window for action is narrow, the procedural steps are specific, and missteps, whether a missed deadline, an inadequate notice letter, or a miscalculated payment, can be difficult or impossible to correct after the fact.

Property owners and other taxpayers are strongly encouraged to review their assessment notices and tax bills carefully, and to consult with property tax counsel if assessments appear excessive or if they intend to exercise their rights under Indiana Code § 6-1.1-15-10.

Taxpayer Checklist: Exercising Your Rights Under IC § 6-1.1-15-10

The following steps provide a practical roadmap for property owners seeking to use the payment protection afforded by Indiana law while an assessment appeal is pending.

1	File a timely appeal. The protection in Indiana Code § 6-1.1-15-10 applies only if a petition for review is filed. For Indianapolis taxpayers challenging 2025 assessed values, the appeal deadline is June 15, 2026; however, the first tax installment is due May 11, 2026. Taxpayers who want to take advantage of this protection should file their appeal prior to sending in their tax payment.
2	Confirm the prior year’s assessed value. Your interim payment is calculated using the assessed value from the year immediately before the disputed assessment. For a 2025 assessment under appeal, that is your January 1, 2024, assessed value. For Indianapolis taxpayers, this information is available on Marion County’s website.
3	Obtain the current year’s tax rate. The prior year’s assessed value is multiplied by the current year’s tax rate, not the prior year’s tax rate. For Indianapolis taxpayers, the applicable rate for your taxing district is reflected on the property’s 2025 Payable 2026 tax bill and is available on Marion County’s payment portal.
4	Calculate the reduced payment amount. Multiply the prior year’s assessed value by the current year’s tax rate to determine the tax obligation under the statute, then divide by two installments.
5	Prepare a letter to the county treasurer and county auditor. The letter should identify the parcel number and property address, confirm that a timely appeal is pending, state the prior year’s assessed value and current year’s tax rate used in the calculation, specify the payment amount, and assert that the payment satisfies Indiana law. Do not forget to include payment of any separate Storm Water Fees, Special Assessments, or other amounts that are unrelated to the assessed value of your property.
6	Submit payment and letters by the installment due date. Mail or deliver your reduced payment to the county treasurer with the notice letter enclosed. Send a copy to the county auditor at the same time. Use a method that provides proof of delivery, such as certified mail with return receipt, and maintain a record of all documents.
7	Set aside funds for the deferred liability. The taxes on the disputed increase are deferred, not cancelled. If the appeal does not succeed, you will owe the difference between the amount you paid and the full tax bill, potentially with interest. Reserve those funds throughout the appeal.
8	Monitor the appeal and be prepared to post a bond. If the appeal is not resolved before the last installment due date, a bond or other security may be required for up to the full contested tax amount. Work with property tax counsel to anticipate this possibility and have a response ready before you are asked.
9	Consider escrow and other contractual obligations. The above steps are permitted under Indiana law, but it is important for each taxpayer to know whether they have any separate contractual obligations, such as escrow obligations in connection with a mortgage on the property, which might impact the taxpayer’s opportunity to take advantage of this Indiana law. This summary does not address such independent contractual obligations taxpayers may have.
10	Consult a property tax attorney. Calculating the prior year’s assessed value correctly, identifying the proper scope of the contested amount, and drafting a notice letter all require careful attention to detail. Indiana’s assessment review process involves deadlines and procedural requirements where errors are difficult to undo. Property owners facing large assessment increases are encouraged to work with experienced property tax counsel from the beginning.