Indiana car sales tax and excise tax calculator

How does Indiana tax a car purchase?

In two parts that are paid to different places. The sale carries Indiana’s state sales tax of 7%, which is the only sales tax: Indiana has no local sales tax. The dealer collects it at signing and gives the buyer a Form ST-108 showing it was paid. The price taxed is the total consideration: the price, the doc fee, delivery or destination charges, and dealer add-ons and services done before delivery, less any dealer discount and a like-kind trade-in. A maker’s rebate is not deducted. The second part is paid to the Bureau of Motor Vehicles (BMV) at registration, or to a dealer that acts as a BMV service provider: the yearly vehicle excise tax, any county surtax, and the registration and title fees. The title must be applied for within 45 days of the purchase.

in.gov · checked Oct 3, 2026

in.gov · checked Oct 3, 2026

codes.findlaw.com · checked Oct 3, 2026

in.gov · checked Oct 3, 2026

What is Indiana's vehicle excise tax?

It is a yearly tax paid at registration in place of a personal property tax on the car. The amount depends on the car’s value class, from I to XVII, and its age. The class comes from the car’s value when it was first offered for sale new, divided by 1 plus the average rise in new-car prices. We have not confirmed which price-index figure the BMV uses for that division. Age is the calendar year of registration minus the model year, so a 2026 model is age 0 in 2026. On a new car the tax runs from $12 in the lowest class to $532 in the highest, which is $42,500 and over. In class XV ($30,000 to $34,999) it is $406.00 at age 0 and falls to $42 at age 9 or more. The first registration is prorated: the annual amount times the months until the car’s next scheduled expiration date, with a part month counted as a whole month, divided by 12.

in.gov · checked Oct 3, 2026

codes.findlaw.com · checked Oct 3, 2026

codes.findlaw.com · checked Oct 3, 2026

What is the county excise surtax, and what does Marion County charge?

The county surtax is an extra tax on top of the excise tax, paid at registration to the county where the car is registered when that county has adopted it by ordinance. State law sets the limits: 2% to 10% of the excise tax or a flat $7.50 to $25, higher with a transportation asset plan, and up to $150 flat for a consolidated city such as Indianapolis. A change adopted by September 1 applies to cars registered after December 31 of that year. Marion County, which includes Indianapolis, charges 10% of the vehicle excise tax with a minimum of $7.50 for cars registered through December 31, 2026. On the $406.00 excise tax above, that is $40.60. For cars registered from January 1, 2027 it charges a flat $100.00 per passenger car, light truck and motorcycle. The city-county council adopted the change on August 10, 2026, after overriding a veto. We have not confirmed whether the BMV prorates the flat $100 for a short first registration. GougeProof does not yet have most counties’ surtax figures. Indiana has 92 counties and we found no current statewide table, so each county’s figure has to be read from its own ordinance. We have not confirmed whether any state agency publishes a current county list.

indy.gov · checked Oct 3, 2026

codes.findlaw.com · checked Oct 3, 2026

in.gov · checked Oct 3, 2026

codes.findlaw.com · checked Oct 3, 2026

Is there a limit on the Indiana dealer doc fee?

Yes, with a cap that moves. Indiana law calls it an unfair practice for a dealer to charge a document preparation fee over $200, and lets that figure be adjusted each year by the change in the Consumer Price Index. We have not confirmed the date the $200 cap took effect. The Secretary of State’s Auto Dealer Services Division says it will not take enforcement action on fees at or below $261.72 as of July 1, 2026. It publishes a new figure each July 1. The fee must be in the advertised price, disclosed in writing with its dollar amount during negotiations, and shown as a separate line on the bill of sale. The fee is taxed: Indiana treats it as a charge for services necessary to complete the sale.

in.gov · checked Oct 3, 2026

codes.findlaw.com · checked Oct 3, 2026

in.gov · checked Oct 3, 2026

Do trade-ins and rebates lower Indiana sales tax?

A trade-in does, in full, with no dollar cap, but only a like-kind one: a vehicle for a vehicle, titled in the buyer’s name, in the same transaction, with its value separately stated. A motorcycle for a car is not like kind. If the trade-in is worth more than the car bought, the taxable price is zero. Money still owed on the trade-in is not taxed, and the full trade-in value comes off whatever is owed. A dealer’s own price discount lowers the taxable price. A manufacturer’s rebate does not, whether it is paid to the buyer or assigned to the dealer.

in.gov · checked Oct 3, 2026

I bought a car out of state. What do I pay in Indiana?

An Indiana resident pays Indiana use tax at the BMV on the difference between Indiana’s 7% and the tax paid in the other state. The credit is for sales, purchase or use tax paid to another state, so a buyer who paid as much as Indiana’s rate owes nothing more. The excise tax, any county surtax, and the registration and title fees still apply. The title must be applied for within 45 days. Titling a car through an out-of-state business to avoid Indiana tax is presumed evasion, and from July 1, 2026 a $500 penalty applies for each transaction.

in.gov · checked Oct 3, 2026

codes.findlaw.com · checked Oct 3, 2026

in.gov · checked Oct 3, 2026