Indiana Vehicle Tax Overview
Indiana applies a flat sales tax rate on vehicle purchases, with specific rules for trade-ins and out-of-state purchases. The state also uses an excise tax system based on the vehicle's value and age.
Sales Tax Structure
- State Rate: 7% flat rate
- Trade-In Credit: Full value deducted
- Private Sales: Same 7% rate
- Out-of-State Purchase: Credit for tax paid
Vehicle Excise Tax
- New Vehicles: Based on MSRP
- Used Vehicles: Based on market value
- Annual Rate: Decreases with vehicle age
- Range: $12 to $1,500 annually
Registration Fees (2024)
- Passenger Vehicles: $21.35
- Title Fee: $15
- Plate Fee: $10.25
- Transportation Infrastructure Fee: $15
- Administrative Fee: $4.50
County Surtax
- Marion County: $25
- Lake County: $25
- Hamilton County: $20
- Other Counties: $7.50-$25
Tax Exemptions
- Vehicles transferred between spouses
- Inherited vehicles
- Certain disabled veterans
- Some nonprofit organizations
- Military personnel (specific conditions)
Registration Requirements
- New Residents: 60 days to register
- Insurance: Mandatory coverage
- Documentation:
- Valid Indiana driver's license
- Proof of insurance
- Vehicle title
- Physical inspection (if required)
Special Vehicle Categories
- Electric Vehicles: Additional $150 annual fee
- Hybrid Vehicles: Additional $50 annual fee
- Historic Vehicles: Special registration available
- Farm Vehicles: Reduced rates apply
Regional Considerations
- Marion County (Indianapolis):
- Higher surtax rates
- Special parking regulations
- Lake County:
- Emissions testing required
- Additional fees may apply
Money-Saving Tips
- Use trade-in credit
- Compare county surtax rates
- Check for veteran benefits
- Consider timing of registration
- Research multi-year registration options
Common Questions
- Q: How is excise tax calculated?
A: Based on vehicle value and age
- Q: Can I transfer plates?
A: Yes, with applicable fees
- Q: Do I need emissions testing?
A: Only in Lake and Porter counties