Vehicle and Watercraft Information
| State | Sales Tax Rate |
|---|---|
| Indiana | 7% |
| Iowa | 5% (special vehicle rate) |
| Kansas | 6.50% |
| Kentucky | 6% |
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- 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. Do Indiana vehicle taxes apply to trade-ins and rebates?
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.
Do you pay sales tax on a used car from private seller in Indiana?
When you purchase a vehicle in Indiana, you must pay sales tax on the purchase price of the vehicle. If a vehicle is purchased privately, the sales tax must be paid at a branch when you apply for the Indiana certificate of title.
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.
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 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%.
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 transfer a car title 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 transfer plates in Indiana?
Transferring Registration in Indiana If you want to switch your current license plates from a recently sold vehicle, you are eligible to do that within 31 days of purchasing a new one. You must also pay a $9.75 plate-transfer fee.
Can I drive a car without plates if I just bought it Indiana?
No – it must display a proper registration plate or temporary registration plate (IC 9-18-2-29). For additional information contact your nearest Indiana State Police post or Indiana State Police Headquarters, 317-232-8250.
Do I need a bill of sale if I have the title Indiana?
When is an Indiana bill of sale required or recommended? An IN bill of sale is required in place of vehicle titles if the buyer or seller cannot obtain a valid title. However, a DMV bill of sale is not required if vehicle titles are obtainable or if residents can use other documents to prove vehicle ownership.