Indiana Car Sales Tax Calculator
Indiana charges a state vehicle sales/use tax of 7% on a car purchase. On a $20,000 vehicle that is about $1,400.00 in state tax before any local add-ons. Enter your own price below — and your trade-in, if Indiana allows a trade-in credit — to estimate what you'll owe.
Quick answer: Indiana’s state vehicle sales/use tax rate is 7%. Local (county/city) taxes may apply on top.
Estimate your Indiana car sales tax
Enter the vehicle price. If Indiana gives a trade-in tax credit, add your trade-in value to reduce the taxable amount.
State rate only. Many Indiana counties and cities add a local sales tax on top, so your actual total may be higher. Trade-in credit rules vary — confirm eligibility with the official source below.
How Indiana taxes a car purchase
| State vehicle sales/use tax rate | 7% |
| Taxable amount | Price − trade-in credit (where allowed) |
| Local / county tax | Varies by jurisdiction — added on top of the state rate |
Indiana title fee is $15. State sales tax on vehicle purchases is 7%. Annual registration combines a state registration fee with a value-based Vehicle Excise Tax and, in most counties, a Wheel Tax or Vehicle Excise Surtax — all collected together by the BMV at renewal.
Sales tax on a used car in Indiana
Indiana applies the same 7% state sales/use tax to a used car as to a new one. On a private-party sale the tax is normally collected when you title and register the vehicle — calculated on the price you paid, minus a trade-in credit where the state allows one, and checked against the vehicle's fair-market value to deter under-reporting.
Dealer vs. private-party purchases in Indiana
Indiana dealers collect the 7% sales tax at delivery and process the title application through the BMV. Private-party buyers must visit a BMV branch (or mail-in where eligible) within 45 days with the signed title, Form 44049, ST-108, and ID; the BMV collects the 7% sales tax at the same visit on the documented sale price. Both paths apply the same flat rate — there is no private-party discount.
Source ↗What's different about Indiana vehicle tax
Indiana charges a flat 7% state sales/use tax on vehicles, applied to both dealer and private-party purchases — there is no local add-on. The BMV collects the tax at title transfer (or the dealer collects at delivery) on the documented sale price. Vehicles purchased by Indiana residents from out-of-state sellers owe Indiana use tax at the same 7% rate at title transfer, with credit for any sales tax already paid to the other state up to the Indiana rate.
Source ↗County & local taxes in Indiana
Indiana has no local sales tax — the 7% state rate is uniform across all 92 counties. Local cost variance comes instead from the Wheel Tax / Vehicle Excise Surtax that the majority of Indiana counties (and some municipalities) levy on annual registration. Marion County (Indianapolis), Hamilton, Hendricks, and many other counties charge a per-vehicle Wheel Tax that adds tens of dollars per year to registration. The BMV collects it at renewal alongside the state fees.
Source ↗Worked example: buying a car in Indiana
Marcus buys a used 2020 Toyota RAV4 from a private seller in Marion County (Indianapolis), Indiana for $20,000.
| Vehicle price | $20,000.00 |
| State sales/use tax | $1,400.00 |
| Title fee | $15.00 |
| State registration + Vehicle Excise Tax (year-1 estimate) | $230.00 |
| Marion County Wheel Tax (annual) | $40.00 |
| Estimated total | $21,685.00 |
Marcus pays the 7% Indiana sales tax ($1,400) and the $15 title fee at the BMV. His first-year combined registration + Vehicle Excise Tax for a 2020 RAV4 runs in the $200–$250 range under the depreciating excise schedule, plus Marion County's Wheel Tax. Marion County is not in the emissions-testing area, so no inspection is required. Confirm exact registration line items on the BMV fee page before paying.
What this estimate excludes
- Local and district taxes. County, city, and transit taxes are added on top of the Indiana state rate.
- Title, registration, and plate fees. These are separate from sales tax — use the Indiana registration and title-transfer calculators for those.
- Dealer documentation fees. A dealer “doc fee” is charged on top and is often itself taxable.
- Exemptions. Gifts, inheritance, and certain family transfers may be exempt — confirm with Indiana Bureau of Motor Vehicles (BMV).
Official Indiana sources
Related Indiana tools & guides
Frequently asked questions
How much is sales tax on a car in Indiana?
The Indiana state vehicle sales/use tax rate is 7%. Multiply it by the taxable purchase price (usually the price minus any trade-in credit). Counties and cities may add a local sales tax on top, so confirm your combined rate with Indiana Bureau of Motor Vehicles (BMV).
Do I pay sales tax when buying a used car from a private seller in Indiana?
In most states, sales or use tax on a private-party vehicle purchase is collected when you title and register the car, not at the point of sale. The rate is generally the same as a dealer sale. Confirm the private-sale rules with Indiana Bureau of Motor Vehicles (BMV).
Does Indiana give a sales tax credit for a trade-in?
Most states tax only the difference between the vehicle price and your trade-in value, which lowers the tax you owe. A handful of states tax the full price with no trade-in credit. Verify Indiana's treatment before you rely on the estimate above.
Are there local or county car sales taxes in Indiana?
Often, yes. The rate shown here is the Indiana state rate only; many counties, cities, and transit districts add a local sales tax on vehicle purchases, so your combined rate can be higher. Indiana Bureau of Motor Vehicles (BMV) publishes the official combined rates.
Can you legally avoid sales tax on a used car in Indiana?
The legitimate ways to lower or avoid vehicle sales/use tax in Indiana are a qualifying trade-in credit (where the state allows one), a genuine gift or qualifying family transfer, or a specific exemption the state grants — not understating the sale price, which is illegal and easily caught by Indiana Bureau of Motor Vehicles (BMV) against the vehicle's fair-market value. Confirm any exemption with Indiana Bureau of Motor Vehicles (BMV) before relying on it.
What is the Indiana Wheel Tax / Excise Surtax and do I owe it?
Most Indiana counties levy a Wheel Tax (sometimes called the Vehicle Excise Surtax) on annual registration. The amount varies by county and vehicle type — typically tens of dollars per car per year. The BMV collects it at registration renewal as a separate line item alongside the state registration fee and the Vehicle Excise Tax. Whether you owe it depends on the county your vehicle is registered in, not where you bought it.
Do I need an emissions test for my Indiana title transfer?
Only if you live in Lake County or Porter County (the two northwest Indiana counties inside the Chicago nonattainment area). Everywhere else in Indiana — Indianapolis, Fort Wayne, Evansville, South Bend (outside the small Porter County footprint), and all rural counties — has no Indiana emissions inspection requirement.
How is Indiana's Vehicle Excise Tax different from sales tax?
Sales tax is a one-time 7% charge paid at title transfer. Vehicle Excise Tax is an annual charge paid as part of registration, calculated from the vehicle's age and value on a state schedule that depreciates over time. Both apply to the same vehicle: you pay 7% sales tax once when you buy it and Vehicle Excise Tax every year for as long as you keep it registered.
Last reviewed: 2026-01-01 · Reviewed by the Car Paperwork editorial team · Based on official Indiana Bureau of Motor Vehicles (BMV) sources · Independent resource · Not legal advice