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Talk to a Specialist →The Headline Numbers
| Effective Property Tax Rate | ~0.90% (lowest in metro) |
| County Income Tax | 1.50% (highest in metro) |
| Combined Income Tax (state + county) | 4.50% on taxable retirement income |
| Indiana Homestead Deduction | Lesser of 60% AV or $48,000 + 37.5% supplemental on first $600K |
| Over-65 Credit (2026) | $150 flat credit (SEA 1-2025) |
| Over-65 Circuit Breaker | Caps annual property tax increases at 2%/yr if AGI ≤ $60K single / $70K joint |
Property Tax Worked Example
On a $350,000 home in Hendricks County with full homestead deduction:
| Gross Assessed Value | $350,000 |
| Less: Standard Homestead Deduction (60% × $350K capped at $48K) | ($48,000) |
| Less: Supplemental Homestead (37.5% on first $600K AV after std deduction) | ($113,250) |
| Net Assessed Value | $188,750 |
| Effective tax at 0.90% | ~$1,700/year |
The 1.5% Income Tax Reality
Hendricks County's 1.5% local income tax is the highest among Indianapolis metro counties. On taxable retirement income — IRA distributions, 401(k) withdrawals, pension payments — this rate stacks on top of Indiana's 3.0% state income tax for a combined 4.5%.
Social Security and military retirement are exempt at both state and county levels. So are qualified Roth IRA distributions. The 4.5% combined rate applies only to taxable distributions.
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Who Wins in Hendricks County
Hendricks property tax math works best for retirees whose taxable income is below ~$30K/year — primarily Social Security recipients, Roth-IRA holders, and retirees with light pension income. At that income profile, the property tax savings outweigh the income tax penalty.
How to File for Indiana Homestead Deductions
File with the Hendricks County Auditor's Office by January 15 of the year after purchase. The standard homestead deduction applies automatically once filed and continues annually as long as the property remains your primary residence. The supplemental deduction is calculated automatically; you don't need to apply separately.
For the Over-65 Credit and Over-65 Circuit Breaker (income-tested), file annually with the county auditor by January 15. Bring proof of age, prior year's federal tax return for AGI verification, and the property's parcel number.
Communities in Hendricks County
The four major 55+ communities in Hendricks County:
- Vandalia by Del Webb (Plainfield, 475 homes, $260K–$420K) — Includes Plainfield Aquatic Center pass
- Stoney Meadow (Avon, 170 homes, $200K–$300K) — Newest, lowest-entry community
- Regency Reserve (Avon, 61 homes, gated) — Boutique gated community
- Easton (Avon, new construction in $300K range)
Run Your Hendricks County Tax Math
The tax decision depends on your income mix. We can connect you with an agent who can run Hendricks-specific math for your situation.
Request Agent IntroductionRelated Research
Hamilton County Tax Guide · Indiana Income Tax Guide · Three-County Comparison · Vandalia by Del Webb