Buying a car in Indiana adds a flat 7 percent sales tax to the price, and because Indiana has no local sales tax, the rate is the same statewide. This calculator applies the trade-in deduction and shows exactly what you will owe at purchase.
How it works
Indiana taxes the purchase price minus any trade-in allowance at a single 7 percent rate:
taxable = purchase price − trade-in allowance
sales tax = taxable × 7%A trade-in lowers the taxable amount, but a manufacturer rebate does not — in Indiana the tax is computed on the price before the rebate is applied. There is no county or city surcharge to add.
Example
You agree to a 30,000 dollar price and trade in a vehicle worth 8,000 dollars. The taxable amount is 22,000 dollars, so the Indiana sales tax is 7 percent of that, or 1,540 dollars. Your price plus tax comes to 31,540 dollars, before registration and title.
Notes
This estimate covers only the sales/use tax. Registration, the annual excise tax, and the title fee are billed separately at the BMV. Private-party purchases are taxed at the same 7 percent rate when you register the vehicle. Verify current rules at in.gov/dor.