Have you ever wondered why your property taxes in Indiana are never paid during the current year? Learn more about taxes in arrears in Indiana below.
Why are Property Taxes in Indiana Paid a Year Later?
There are two things everyone in Newburgh knows about their property taxes in Indiana: how much they’re paying and when they’re due! After that, it’s all kind of a mystery. One thing you’ve surely noticed is that every time you make a property tax payment, the payable date is never for the current year. Indiana (along with Colorado, Idaho, North Carolina, and a handful of other states) uses a payment system for property taxes called payment in arrears. Under this system, a homeowner’s property tax liability is always paid during the following year.
How Does this Benefit Me?
If you’re looking for a complete way out of paying your property taxes in Indiana, don’t get your hopes up! That being said, paying taxes in arrears can benefit you in a couple ways. The first is that you have more time to gather your money. Although there are some special exceptions, the government will almost always collect when necessary—meaning that any extra time you can take advantage of before collection day will certainly help you out if you’re in a tough financial spot. On the flip side of that, another benefit of the delayed payment date is that you can hold on to any excess money you have for longer. Many Hoosiers decide to invest this extra money temporarily, either through traditional investing or adding to a dedicated savings account to earn interest, or by putting the money into expensive home renovations such as a new roof or kitchen. Whatever you decide to do, just make sure you are able to gather the necessary funds when it comes time for payment.
When are Property Taxes in Indiana Due?
Just in case you’re having trouble remembering, property taxes in Indiana are split into two equal installments. The first payment deadline is May 10th, while the second deadline is November 10th. Regardless of how much money you owe, you’ll want to make sure you pay these taxes on time. You may be able to take advantage of a special program or first-time-offender leniency, but failing to pay these property taxes can result in losing your home through a foreclosure or tax sale.
If you find yourself in that situation, don’t hesitate to reach out to the Newburgh Homes team. We can get you in touch with a local professional who can review your options and help you proceed accordingly.