If an owner-occupied home in Hammond valued at $135,000 has a tax rate of 5.10%, what is the approximate property tax bill considering the homestead deductions?

To calculate the approximate property tax bill for an owner-occupied home in Hammond valued at $135,000 with a tax rate of 5.10%, it is essential to first apply the homestead deduction. In Indiana, the primary homestead deduction reduces the assessed value of the home by a significant amount, typically around $45,000.

Initially, the assessed value of the home is $135,000. After applying the homestead deduction, the new assessed value becomes:

• Assessed Value: $135,000

• Homestead Deduction: $45,000

• New Assessable Value: $135,000 - $45,000 = $90,000

Next, the property tax bill is calculated using the tax rate. The tax rate is 5.10%, or 0.051. Therefore, the approximate property tax bill can be calculated as follows:

• Property Tax Bill = New Assessed Value × Tax Rate

• Property Tax Bill = $90,000 × 0.051 = $4,590

When rounded, the tax bill is approximately $4,590. Given the multiple-choice options, the closest option to this calculated amount is $4k, making it the most accurate figure before