Indiana charges sales tax of 7% statewide on vehicles, with no local add-on. A trade-in does reduce the taxable price, which is real money on the deal.
No local sales tax on vehicles in Indiana.
Manufacturer rebates paid to the dealer are included in the taxable selling price; rebates paid directly to the customer after the sale are not (Bulletin #28S).
Nonresident buyers pay the lesser of Indiana's 7% or their home state's rate under IC 6-2.5-5-39.
| Fee | Amount |
|---|---|
| Title | $15.00 |
| Registration (mixed-based) | ~$430 |
| Transportation Infrastructure Improvement Fee (annual) | $15.00 |
Lease tax applies to each monthly payment rather than to the full price of the car, so you pay it as you go.
Pick your city for the exact combined rate where you register, plus what title and registration run there.
7%. Indiana applies one rate statewide on vehicles, so it does not change from city to city.
Like-kind trade-in (motor vehicle for motor vehicle) is deducted from the taxable selling price (Sales Tax Information Bulletin #28S).
Title is $15.00. Passenger registration $21.35 + Transportation Infrastructure Improvement Fee $15, plus the annual vehicle excise tax (based on MSRP class and age; several hundred dollars for a new $35,000-$45,000 car in year 1) and any county wheel tax/surtax. Hybrids add $81 and EVs $242 per year.
Yes, at $251. Secretary of State enforcement threshold, CPI-adjusted: $251.05 effective July 2025 (secondary report of the SOS memo; the July 2024 memo set $245.28).
Tax applies to each monthly payment rather than the whole price of the car, so the tax is spread across the lease.
Rates, fees, and rules change. These figures are estimates for planning, not tax advice; confirm the final numbers with the dealer and your state's motor vehicle agency before you buy.