Indiana Car Sales Tax Calculator (2026)

• Indiana's gross retail tax rate is 7% under IC 6-2.5-2-2.
• A like-kind trade-in reduces the taxable amount if its value is separately stated on the sale documents.

Gross retail (sales) tax

7%

Local tax

None on vehicles

Trade-in

Full credit: reduces the taxable price

Manufacturer rebate

Taxed: tax is figured before the rebate

Figured with Indiana's rules for a buyer from a dealer.

• Used car, no trade-in$1,260

  $18,000 price. Taxed on $18,000.

• New car with a trade-in$1,750

  $35,000 price, $10,000 trade-in. Taxed on $25,000. The trade-in saves $700.

• New car with a trade-in and a rebate$2,100

  $45,000 price, $15,000 trade-in, $2,000 rebate. Taxed on $30,000. The trade-in saves $1,050. The rebate does not lower the tax.

These examples treat the agreed price as the taxable price. Where a state uses a book value instead, the tax can differ.

Indiana has no local tax on vehicles, so buyers in Indianapolis, Fort Wayne and Evansville and everywhere else in Indiana are figured at the same state rate: $2,100 on a new $30,000 car. Whether the tax applies to your purchase still depends on the rules above.

The calculator covers a car bought from a dealer. These rules apply to other ways of buying or bringing a car to Indiana.

Buying from a private seller

Indiana sales tax is due on the purchase price of a car bought from a private seller, and the buyer pays it at a BMV branch when applying for the Indiana title. (secure.in.gov, checked Nov 10, 2026)

A car received as a gift

A car transferred from one individual to another as an outright gift or inheritance, with no consideration, is exempt from Indiana sales and use tax. Taking over the loan payments counts as consideration, so that transfer is taxed unless the new owner was on the original security agreement. (forms.in.gov, checked Nov 10, 2026)

Moving to Indiana with your car

A car bought, titled and licensed in another state or country by a resident there, who later becomes an Indiana resident, is exempt from Indiana sales and use tax when titled and registered in Indiana. The owner completes the New Resident Statement on Form ST-108E. (forms.in.gov, checked Nov 10, 2026)

Buying outside Indiana

An Indiana resident who buys a car in another state and pays that state's sales tax owes Indiana use tax only on the difference between the two rates when registering at the BMV. The credit covers state sales tax only, not flat fees or local or excise taxes, and cannot exceed the Indiana tax due. (in.gov, checked Nov 10, 2026)

Active-duty military

Active-duty military members are not charged an administrative penalty for missing their registration renewal deadline. Members stationed in Indiana from another state may title and register their vehicle in Indiana with a Military Affidavit (State Form 46402), a Leave and Earnings Statement and a military ID. (in.gov, checked Nov 10, 2026)

Deadline to pay

The Indiana certificate of title must be applied for within 45 days after the car is purchased or otherwise acquired; for a private purchase, the sales tax is paid at the branch with the title application. (secure.in.gov, checked Nov 10, 2026)

Paying late

Applying for the title after the 45 days have passed brings a $30 administrative penalty for a late title. (secure.in.gov, checked Nov 10, 2026)

Indiana is tied for 44th lowest of all 50 states and the District of Columbia for tax on a $30,000 car. See all states.

Tax on a $30,000 car before trade-in, in nearby states. You generally pay tax based on where you register the car.

• Kentucky$1,800
• Michigan$1,800
• Illinois$1,875 – $2,625
• Ohio$1,950 – $2,475
• Indiana$2,100

• All car calculators
• Sales tax calculators by state
• Car sales tax by state
• Trade-in tax credit by state
• Car cost by state
• Indiana out-the-door price
• Auto loan calculator

• Illinois car sales tax
• Kentucky car sales tax
• Michigan car sales tax
• Ohio car sales tax