Indianapolis, IN Local Taxes & Fees: Vacancy Tax (2026)
Key Facts
- Trigger
- Vacant 90+ consecutive days
- Initial penalty
- $500/structure, capped $5,000/year
- Escalation
- $1,000, then $1,500, then $2,000/period
- Collection
- Special assessment on tax duplicate
Summary
Indianapolis has no dedicated vacancy tax: instead, owners of structures vacant 90+ days face an escalating civil penalty up to $2,000 per period, billed through the county tax duplicate.
(a)An owner of a property that remains a vacant structure for at least ninety (90) consecutive calendar days may be liable for a civil penalty in the amount of five hundred dollars ($500.00) per vacant structure not to exceed five thousand dollars ($5,000.00) per structure per year, unless... (b)...(1)One thousand dollars ($1,000.00) for the second ninety-calendar-day period... (2)One thousand five hundred dollars ($1,500.00) for the third... (3)Two thousand dollars ($2,000.00) for the fourth and each subsequent ninety-calendar-day period thereafter...
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 47 Update 2).
Full Breakdown
There's no separate 'vacancy tax'; Marion County's continuous-vacancy statute fills that role. An owner whose structure sits vacant 90+ consecutive days can be fined $500 per structure (capped at $5,000/year) unless repairs are underway under a valid permit, taxes are current, and the property is being sold, leased or rented. If vacancy continues, penalties escalate to $1,000, then $1,500, then $2,000 for each later 90-day period, and unpaid amounts are certified to the county auditor as a special assessment on the tax duplicate.
Violations & Fines
Unpaid penalties become a lien on the property, certified to the county auditor and collected as delinquent property taxes, with proceeds going to the unsafe building fund.
Frequently Asked Questions
Is this really called a 'vacancy tax'?
Can an owner avoid the penalty?
Sources & Official References
Other rules in Indianapolis
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