Marion County
House flipping in Indianapolis, IN: transfer taxes, property tax and a flip calculator
Indiana has no real estate transfer tax, so a flip in Indianapolis saves a cost that eats thousands in other states. The bigger local numbers are property tax and how it resets after you buy. Here is what to budget, with sources, and a calculator to run your deal.
Projected net profit
$47,476
15.8% margin on ARV over 6 months
Cash needed
$42,524
Return on cash
112%
Max offer
$170,500
$30k profit, 12% margin
70% rule
$160,500
70% of ARV minus rehab with 10% contingency
Where every dollar goes
- Purchase
- $160,000
- Rehab with contingency
- $49,500
- Buy closing costs
- $3,501
- Loan points and fees
- $5,880
- Loan interest
- $9,364
- Taxes, insurance, utilities
- $3,280
- Selling costs
- $21,000
- Total cost
- $252,524
- Break-even ARV
- $248,976
Planning defaults: hard money 11%, 2 points, $1,500 fees, 90% of price and 100% of rehab, interest on drawn funds; 5.5% commission and 1% concessions; state closing and transfer taxes. Not a quote.
Comps, rehab, refi and a verdict for a real address. Your numbers come with you.
Transfer and recording taxes in Indianapolis
| Level | What it is |
|---|---|
| State | No transfer tax. Indiana requires a Sales Disclosure Form with a $20 fee (since July 1, 2021) on transfers for valuable consideration. (source) |
Who pays: no transfer tax; a $20 sales disclosure fee.
What it costs on a typical flip
- Buy at $200,000: deed and transfer taxes
- $0
- Sell at $300,000: deed and transfer taxes
- $0
Recording and title fees still apply. They are flat or small compared with a percentage tax.
Property tax in Indianapolis for investors
Indiana circuit-breaker caps limit property tax to 1% of gross assessed value for homesteads, 2% for other residential (including rentals and non-homestead single-family), and 3% for nonresidential. (source)
For a flip, property tax is part of carrying cost every month you own the house. For a rental, budget the bill the county will send after you buy, not the seller's bill.
Run the numbers
The calculator above uses general closing cost defaults outside Virginia, North Carolina and West Virginia. For Indianapolis, add the taxes above to your numbers: about $0 on the buy side and $0 on the sale in this example.
Questions
Is there a transfer tax in Indianapolis?
No. Indiana has no real estate transfer tax. Recording and title fees still apply.
Is Indianapolis a good place to flip houses?
It depends on the deal, not the city. Buy at a price that leaves room for every cost: closing and transfer taxes on both ends, loan points and interest, carry, commission and concessions. Run the numbers on each house.
Facts checked 2026-10-10 against the linked official sources. Tax rates and fees change; confirm them with your closing attorney, title company or the locality. Not legal, tax or lending advice.
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