The property tax figure printed on an Avon listing describes the seller's household. Indiana bills a year behind, and Hendricks County applies deductions only to owners who have applied for them. That means the number a buyer budgets against reflects someone else's filings and someone else's year. Once the deed changes hands, that benefit has to be earned again by a new application.
The timing makes this worth getting right. Indiana's 2025 property tax law, Senate Enrolled Act 1, grows the homestead benefit every year from 2026 through 2031. A buyer who closes this winter and files on time gets a larger deduction each year. A buyer who misses the window pays tax on a much bigger share of the home's value, and that gap gets wider every year.
The Bill You See Was Calculated for the Seller
Hendricks County says plainly that Indiana property taxes are paid a year in arrears, so deductions applied for in one year don't show up on a bill until the following year. The bill a homeowner pays this year is based on the assessed value from January 1 of the year before, and it is paid in two installments, one in spring and one in fall. The Hendricks County Treasurer listed May 11, 2026 and November 10, 2026 as this year's due dates. Its page also says bills are mailed once a year, usually in late March or early April, and that there is no fall mailing.
Because of that lag, the closing table settles taxes in two pieces. IndyLegal Title's proration guide breaks down the seller's responsibility like this:
- Any unpaid installment from the prior assessment year. The seller owned the home for that whole period, so it comes out of the seller's proceeds in full.
- A daily share of the current year, which hasn't been billed yet. The seller covers January 1 through the closing date and the buyer covers the rest of the year, all estimated from the most recent bill available.
That same guide spells out the catch: "Deductions do not automatically transfer." If the seller had a homestead deduction and the new owner doesn't qualify for or claim the same one, the next bill can come in well above the figure used to estimate the proration. The binding numbers appear on the settlement statement the title company prepares from verified county figures.
Your Homestead Filing Waits on the Deed
After closing, the next bill depends on your own homestead filing. The Hendricks County Auditor treats the standard homestead deduction as a residency-based benefit: one per individual or married couple, on a primary residence they occupy, with an ownership interest required. According to the county's deduction FAQ, changing how title is held or adding or removing someone from the title requires a new homestead application. A common reason applications get rejected is that the deed hasn't been recorded yet.
The county's two pages describe the deadline differently:
- The Auditor's FAQ says deductions must be filed by December 31 to take effect on the next year's bill. For December closings where deed recording runs late, it says the deadline can extend through January 31.
- The county's property tax deductions page sets the deadline at January 15 each year. For the new homestead credit, it says a 2026 applicant would need to apply by January 15, 2027 for taxes payable in 2027.
Hendricks County accepts homestead applications online through its e-file portal. The same portal shows which deductions are currently on a parcel, which helps a buyer confirm that their own filing has been recorded. Since the county can't approve an application until the deed is recorded, buyers closing in December may want to ask the Auditor's office which deadline applies to them.
Why the Filing Is Worth More Every Year Through 2031
This is where SEA 1 changes the stakes. Under the old formula, Hendricks County explains, the standard deduction was a fixed $45,000, and the supplemental deduction was 35% of the value left after it. SEA 1 resets both on a published schedule. The flat standard deduction shrinks to zero while the supplemental percentage climbs, and total deductions are capped at 75% of gross assessed value. When an owner qualifies for the standard deduction, the county calculates the supplemental deduction automatically. No second application is needed.
The table below runs the county's own formula on a home assessed at $350,000, the same figure Hendricks County uses in its example, and holds that value flat each year. It's an illustration only. It leaves out rate changes, assessment changes, other deductions and tax caps, and it shows assessed value, not dollars owed.
| Tax year | Standard deduction | Supplemental % | Total homestead deduction on $350,000 | Value taxed with homestead | Value taxed without it |
|---|---|---|---|---|---|
| 2025 pay 2026 | $48,000 | 40% | $168,800 | $181,200 | $350,000 |
| 2026 pay 2027 | $40,000 | 46% | $182,600 | $167,400 | $350,000 |
| 2027 pay 2028 | $30,000 | 52% | $196,400 | $153,600 | $350,000 |
| 2028 pay 2029 | $20,000 | 57% | $208,100 | $141,900 | $350,000 |
| 2029 pay 2030 | $10,000 | 62% | $220,800 | $129,200 | $350,000 |
| 2030 pay 2031 | $0 | 66.7% | $233,450 | $116,550 | $350,000 |
In this example, the homestead takes about 48% off the taxable value on pay-2026 bills and two-thirds by pay-2031. A parcel without a homestead filing stays fully exposed for all six years. The new supplemental homestead credit adds to the gap. Starting with taxes payable in 2026, homesteads get a credit equal to the lesser of $300 or 10% of that year's tax liability. Auditors apply it automatically, but only to property that qualifies for the standard deduction.
For a buyer closing this winter, the first bill shaped by their own filing is the pay-2027 bill. That bill uses the $40,000 standard deduction and the 46% supplemental, so it is built on different math from any bill the seller ever paid.
Which Avon Rate Applies Depends on the Parcel
Once the deductions set how much value gets taxed, the parcel's taxing district sets the rate applied to it. "Avon" covers several taxing districts, and the Indiana Department of Local Government Finance's 2026 certified tax rates by district, dated February 26, 2026, lists different gross rates per $100 of assessed value:
- Town of Avon, district 031: $2.6268
- Avon-Lincoln, district 034: $2.5460
- Washington Township, district 022: $2.2931
These are gross rates, applied before deductions, credits and caps on each parcel. Two homes with similar prices can sit in different districts, so the district code on the parcel record is worth checking before you compare tax figures between homes.
The value side moves as well. In an April 7, 2026 release, the Hendricks County Assessor said 2026 assessments are the starting point for taxes payable in 2027 and that annual adjustments used sales from calendar year 2025. The release also cautioned that a higher assessment does not mean taxes go up by the same percentage. Put together, a buyer's pay-2027 bill reflects a new assessment, a new deduction schedule and, if the filing went in on time, a new owner's homestead.
What This Means If You're Selling in 2027
Sellers face the same mechanics from the other side. The proration credit you give a buyer is estimated from the most recent bill. According to IndyLegal Title's guide, the biggest variable is whether the spring and fall installments have actually been paid by closing, and getting that wrong can shift the number by a full half-year of taxes. Sellers who check their installment status with the Treasurer before listing usually find fewer surprises on the settlement statement.
Buyers using a mortgage should ask about escrow early. The Treasurer notes that mortgage companies may get the homeowner's bill and pay it from escrow, but it tells homeowners to contact their lender to confirm whether the lender will pay. Your lender sets the escrow amount, so they are the right person to ask how a bill that changes under SEA 1 will affect your monthly payment.
Quick Answers
Does the seller's homestead deduction carry over to me? No. Hendricks County requires a new homestead application when title changes, and IndyLegal Title notes that deductions do not automatically transfer to a buyer.
Do I need to apply separately for the $300 credit? No. DLGF says no application is required. Auditors apply it to property that qualifies for the homestead standard deduction.
Will SEA 1 change my local income taxes too? SEA 1 also restructured local income taxes. Indiana Public Media reported on March 23, 2026 that a 2026 law, HEA 1210, pushed those changes back to 2029.
This post is general information, not legal, tax or financial advice. Please confirm your own deadlines and figures with the Hendricks County Auditor or Treasurer, your lender and your title company.
If you're closing in Avon before year-end or planning a 2027 sale, Home Strategy Group can walk you through the closing calendar with you, including when the deed records, when your homestead filing goes in and how the proration is likely to land. Request your personalized market consultation.
