Property Tax in Jefferson County, Indiana

How the bill is built

Indiana calculates property tax in a very different way from most states. Start with your home's gross assessed value (AV), subtract the $48,000 Homestead Standard Deduction, then subtract 40% of what's left as the Supplemental Homestead Deduction. What remains is your net AV, and that is multiplied by your tax district's combined rate (per $100 AV). The result is then capped at 1% of your gross AV under Indiana's circuit breaker — meaning most homesteads in high-rate districts effectively pay 1% flat.

Important for 2026: Under Senate Enrolled Act 1 (2025), every homestead also receives a new Supplemental Homestead Credit equal to 10% of your tax liability, up to $300 per year. This is applied automatically — no form required — starting with bills due in 2026.

Jefferson County rate breakdown (per $100 AV, Madison district)

Taxing entity	Rate
City of Madison combined rate (per $100 AV)	2.3541
Combined total	2.3541

Data record updated April 25, 2026. This is an editorial update date, not a tax year or a guarantee that every figure has been independently verified.

Sources and scope: Check rates and parcel details with Jefferson County Assessor. Figures may refer to different source years; a county-seat rate does not apply to every address. How we use data and estimates.

Note: Madison, Indiana — the seat of Jefferson County — is one of the most architecturally significant small cities in the United States. Madison's historic district contains 133 blocks of intact 19th-century commercial and residential buildings; the entire historic district is a National Historic Landmark, one of only a handful of small-city designations in the National Register system.

Note: Madison was a major Ohio River port from the 1820s through the Civil War — in 1850 it was the second-largest city in Indiana after Indianapolis. The construction of the Indianapolis-Madison Railroad (1842, including the famous Madison Cut and Madison Incline — the steepest mainline railroad incline in the United States) made it briefly Indiana's commercial capital, before being eclipsed by Cincinnati and Louisville.

Note: Hanover College, founded 1827, is the oldest private college in Indiana — a small liberal arts institution of approximately 1,000 students, perched on a bluff overlooking the Ohio River. The college is the county's largest single educational employer.

Deductions and credits for 2026

Homestead Standard + Supplemental Deductions

Indiana's two-part homestead deduction is the single most valuable tax reduction available to homeowners. For 2026, the Standard Deduction is $48,000 off your gross AV, and the Supplemental Deduction is 40% of what remains after the Standard is applied. Together these typically shield about 65% of a typical home's AV from taxation before any rate is even applied.

File Form HC10 (Homestead Property Tax Deduction) with the Jefferson County Assessor by December 31 of the year preceding the tax year. Many closings handle this automatically — verify on your next tax bill that "Homestead Standard Deduction" appears as a line item.

Phase-in schedule: Under SEA 1, the Standard Deduction drops to $40,000 in 2027 and phases out entirely by 2030, while the Supplemental percentage rises from 40% (2026) to 66.7% by 2031. The net effect is roughly revenue-neutral for most homeowners — just a different calculation path.

The 1% Circuit Breaker Cap

Indiana's constitution caps homestead property tax at 1% of gross assessed value. If your calculated tax would exceed that amount (which is common in high-rate districts like Hammond, Gary, and South Bend), the bill is reduced to the cap. Non-homestead residential property is capped at 2%, and commercial at 3%.

Supplemental Homestead Credit (new in 2026)

Under SEA 1, qualifying homesteads receive a credit equal to the lesser of 10% of your tax liability or $300. This is applied automatically to your bill — no application needed.

Over 65 Credit

Replacing the old Over 65 Deduction, this new credit provides up to $150 directly off your tax bill. Income limit is $60,000 single / $70,000 joint. File Form 43708 with your county auditor by January 15 of the tax year.

100% Disabled Veteran Exemption

Veterans with a 100% service-connected disability qualify for a full exemption on their primary residence. Partial disability deductions vary by rating.

Appealing your assessment

If you believe Madison-area assessed values on your property are too high, you can file Form 130 (Taxpayer's Notice to Initiate an Appeal) with your township assessor within 45 days of receiving your Form 11 assessment notice, which typically arrives in the spring. Most appeals are resolved informally with the assessor; unresolved disputes go to the county Property Tax Assessment Board of Appeals (PTABOA).

Cities and towns in Jefferson County

This guide lists 4 selected communities in or associated with Jefferson County. It is not a complete municipal directory. Local taxing districts can differ between communities and individual addresses.

Data: US Census Bureau, 2020 Decennial Census. Populations rounded. Cities marked as "split" straddle a county border — the portion inside Jefferson County is subject to Jefferson County's tax rolls, while the portion outside is subject to the adjacent county's.

City or town	Type	Population (2020)
Madison County seat	city	12,030
Hanover	town	3,550
Dupont	town	380
Brooksburg	town	80

About city-level property tax rates: The rate breakdown and calculator on this page use a representative district around Madison. Other cities in Jefferson County may pay into different school districts, city rates, and special districts — so their combined rates can differ, sometimes substantially. Always verify the specific rates for your address with the Jefferson County Assessor before relying on any estimate.

Frequently asked questions

How does the Indiana 1% circuit breaker cap actually work?

Indiana's constitution caps homestead property tax at 1% of your gross assessed value. If your calculated tax (after deductions) would exceed 1% of gross AV, the excess is automatically "forgiven" — you never pay more than 1%. In Lake, Marion, and St. Joseph counties, a large share of homesteads hit this cap.

Do I have to apply for the Supplemental Homestead Credit?

No. If your property already has the Homestead Standard Deduction on file, the Supplemental Homestead Credit is applied automatically starting with your 2026 bill. Check that it appears on your bill under "Credits."

When does my homestead deduction need to be filed by?

File Form HC10 with your county auditor by December 31 of the assessment year. Many real-estate closings handle this paperwork — verify on your first full-year tax bill that the deduction appears.

About Jefferson County

Beyond the property tax — a few things you might not know about the place.

Weird fact

The Madison Incline (also known as Madison Cut) — a 7,012-foot-long, 5.89% grade railroad incline cut through the Ohio River valley bluffs in the 1830s — was the steepest standard-gauge mainline railroad grade in the United States from its 1841 completion until 1868. Trains had to use a special grip-rail system to ascend the incline; the original cut and the operating helper-locomotive base are still visible from US-421 north of Madison.

Hometown hero

Lanier Graham

Madison's most famous family is the Lanier family — banker, philanthropist, and Indiana state treasurer James F.D. Lanier (1800-1881) built the Lanier Mansion (1844) on a bluff overlooking the Ohio River. During the Civil War, Lanier personally loaned the State of Indiana over $1 million (equivalent to about $30 million today) to equip Union troops, becoming one of the most important private financiers of Indiana's war effort. The Lanier Mansion is now a state historic site.

Biggest annual event

Madison Regatta

The Madison Regatta — held annually on the Ohio River the weekend after Independence Day since 1929 — is one of the oldest hydroplane racing events in the United States and the only Unlimited Hydroplane race in Indiana. The H1 Unlimited Hydroplane Series brings 1,000+ horsepower turbine-powered boats reaching speeds of 220 mph through downtown Madison. Draws 75,000+ spectators over three days.

Property Tax in Jefferson County