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.
- 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. You can find these fees further down on the page.
How much is 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. You can find these fees further down on the page.
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 state has no sales tax on cars?
Avoiding sales tax can be incredibly beneficial to your car purchase, but it’s only possible in some states according to Wide Open Roads. Alaska, Montana, Oregon, Delaware, and New Hampshire have no statewide sales tax.
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.
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.
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 does it cost to title a car 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 much are doc fees 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.
Is it cheaper to buy a car in Indiana or Illinois?
Illinois has a base rate of 6.25 percent with varying municipal and city taxes levied on top of this. For the Chicago area, sales tax on a car can reach 10.5 percent making a car purchase in Indiana cheaper for comparable models.
Where is the cheapest state to buy a car?
Overall, New Hampshire is the cheapest state to buy a car, since registration fees are low and sales tax non-existent. Florida is the second cheapest state to buy a car, and the state has a wonderful inventory. In fact, cars cost around ten percent less than the average.
What happens if I buy a car from out of state?
According to Carfax, you should pay sales tax to the state where you will register your vehicle (where you live), not to the state where you bought the vehicle. However, you may need to obtain a temporary registration card from the state where you purchased the car if you plan to drive it back to your home state.