A comparison of the properties for two ITO thin films was performed. The two films were as follows – as-deposited and annealed ITO films. The influence of annealing on the structural, morphological, electrical, and optical properties was studied. The post-annealing treatment was done at a temperature of 400 for 1 h in air. The ITO thin films were deposited onto glass substrates by RF magnetron sputtering of a ceramic In2O3: SnO2 target in pure argon atmosphere at a low base pressure of <10-6 mbar and a RF power of 50 W. The films were characterized by XRD, FTIR, contact angle measurements, FE-SEM combined with EDX, Hall-effect measurements and UV-Vis transmission spectroscopy. The ITO films showed a crystalline structure with a predominant orientation (400) and its intensity was increased after the film was annealed. The structure of the annealed film became reformed in more perfect columnar structure. The annealed film showed a decrease in contact angle and increase in FTIR spectra intensity. The annealing induced more tin incorporated into the film from 0.51 to 2.62 at%. The resistivity decreased from 2.7x10-3 to 1.1x10-3 Ω cm with increasing mobility from 7.5 to 27.5 cm2 V-1 s-1 but decreasing carrier concentration from 3.0x1020 to 2.0 x 1020 cm-3. The optical band gap increased from 3.43 to 3.50 eV. All films showed highly transparency (∼85%) in the visible light region. Compared with the non-annealed ITO film, the air-annealed ITO film revealed the better properties except for carrier concentration.