Vehicle and Watercraft Information
|State||Sales Tax Rate|
|Iowa||5% (special vehicle rate)|
Sales tax on cars and vehicles in Indiana
- Indiana collects a 7% state sales tax rate on the purchase of all vehicles. The maximum tax that can be owed is 375 dollars. In Indiana, the taxable price of your new vehicle will be considered to be $5,000, as the value of your trade-in is not subject to sales tax.
How do you figure sales tax on a car in Indiana?
When you buy a car, you have to pay Indiana sales tax on the purchase, plus excise tax to register the vehicle. The state charges a 7% sales tax on the total car price at the moment of registration.
Do I have to pay sales tax on a used car in Indiana?
Indiana collects a 7% state sales tax rate on the purchase of all vehicles. In addition to taxes, car purchases in Indiana may be subject to other fees like registration, title, and plate fees.
How much are dealer fees on a used car in Indiana?
Indiana Gov. Eric Holcomb signed a bill this month that allows dealerships to charge customers document preparation fees but caps those fees at $199. The change legalizes a practice some Indiana dealerships have had of charging document fees in the range of $150 to $199.
How can I avoid paying sales tax on a car?
You can avoid paying sales tax on a used car by meeting the exemption circumstances, which include:
- You will register the vehicle in a state with no sales tax because you live or have a business there.
- You plan to move to a state without sales tax within 90 days of the vehicle purchase.
- The vehicle was made before 1973.
What is Indiana sales tax rate?
Indiana sales tax details The Indiana (IN) state sales tax rate is currently 7%.
How do you figure out the sales tax on a car?
To calculate the sales tax on your vehicle, find the total sales tax fee for the city. The minimum is 7.25%. Multiply the vehicle price (before trade-in or incentives) by the sales tax fee. For example, imagine you are purchasing a vehicle for $20,000 with the state sales tax of 7.25%.
Do I have to pay taxes twice if I buy a car out of state?
Do I have to pay taxes twice if I buy a car out of state? No, you will only pay taxes once to the state where you register the car. If you buy from a dealer they will often collect this for you and remit to your home state.
Is it better to gift a car or sell it for $1?
While some car owners consider selling the car for a dollar instead of gifting it, the DMV gift car process is the recommended, not to mention more legitimate, way to go. They might not like the car or might be offended by a hand-me-down gift. Be sure that they afford insurance and maintenance costs.
How much tax is on a used car?
The national average is around 5.75%. So, if you’re buying a used car for $10,000, expect to pay around $575 as sales tax. Obviously, you’d have to know the exact tax in your state before you negotiate with the seller.
How much is a title transfer in Indiana?
If you’re wondering how much required title transfer fees are, you should know a new title in the state of Indiana will cost $15 with expedited service costing an additional $25.
How do I avoid sales tax if I buy a car out of state?
Sales taxes on cars are often hefty, so you may try to avoid paying them. The most straightforward way is to buy a car in a state with no sales taxes and register the vehicle there. Only five states do not have statewide sales taxes: Montana, Alaska, Delaware, Oregon, and New Hampshire.