Indiana charges sales tax of 7% statewide on vehicles, with no local add-on. A trade-in does reduce the taxable price, which is real money on the deal.
7%
Sales tax on a vehicle
Full credit
Trade-in reduces the taxable price
~$460.00
Title, registration and fees on a $35,000 car
$251.05
Doc fee, capped by law
Your payment, cash or finance.
Type your own numbers and see the same car priced as cash and as a loan, with the taxes and state fees for Indiana. Nothing you type leaves this page.
Cash
...
out the door
Sales tax
...
Title, registration, and fees
...
Trade-in
...
Due at the dealership
...
Finance
.../mo
Amount financed
...
Total interest
...
Payments plus cash down
...
Lease
To see a lease, pick a vehicle. A lease is priced on one car: what it is expected to be worth at the end (its residual) and the leasing company's money factor change by model and by month.
An estimate on the numbers you type, not an offer of credit or a quote from any dealership. Starting loan rates are Rateous's rates for each credit range and term; they are not an offer from any lender. The documentary fee starts at an example figure, the state's legal cap where it has one or $599 where it does not, not any dealership's fee; each dealership sets its own. Taxes and state fees are estimates for Indiana; the dealership's paperwork and your motor vehicle agency have the final numbers. Nothing you type is sent, saved, or used to check your credit.
How the tax works.
No local sales tax on vehicles in Indiana.
Manufacturer rebates paid to the dealer are included in the taxable selling price; rebates paid directly to the customer after the sale are not (Bulletin #28S).
Nonresident buyers pay the lesser of Indiana's 7% or their home state's rate under IC 6-2.5-5-39.
Trade-ins: Like-kind trade-in (motor vehicle for motor vehicle) is deducted from the taxable selling price (Sales Tax Information Bulletin #28S).
Title, registration and fees.
On a $35,000 new car with a $37,000 sticker, registered in Indianapolis, no trade-in: the same figures the calculator above uses. The dealership's documentary fee is its own and is not included.
Passenger registration $21.35 + Transportation Infrastructure Improvement Fee $15, plus the annual vehicle excise tax (based on MSRP class and age; several hundred dollars for a new $35,000-$45,000 car in year 1) and any county wheel tax/surtax. Hybrids add $81 and EVs $242 per year.
Annual value-based tax: Vehicle excise tax (plus county/municipal vehicle excise or wheel tax). Flat amount from a table keyed to MSRP class and vehicle age (IC 6-6-5); declines each year. Collected by BMV with registration in lieu of property tax; exact amount depends on the MSRP bracket.
Leasing in Indiana.
Indiana taxes a lease one payment at a time: the tax is added to each monthly payment, so you pay it as you go.
Cities in Indiana.
Pick your city for the exact combined rate where you register, plus what title and registration run there.
7%. Indiana applies one rate statewide on vehicles, so it does not change from city to city.
Does a trade-in lower the sales tax in Indiana?
Like-kind trade-in (motor vehicle for motor vehicle) is deducted from the taxable selling price (Sales Tax Information Bulletin #28S).
What are title and registration fees in Indiana?
On a $35,000 new car with a $37,000 sticker, registered in Indianapolis: Title fee $15.00, Registration (est., mixed based) $430.00, Transportation Infrastructure Improvement Fee (annual) $15.00, about $460.00 in all. Passenger registration $21.35 + Transportation Infrastructure Improvement Fee $15, plus the annual vehicle excise tax (based on MSRP class and age; several hundred dollars for a new $35,000-$45,000 car in year 1) and any county wheel tax/surtax. Hybrids add $81 and EVs $242 per year.
Is the doc fee capped in Indiana?
Yes, at $251.05. The Secretary of State sets the limit and adjusts it for inflation: $251.05 from July 2025, up from $245.28 in July 2024.
How is a lease taxed in Indiana?
Indiana taxes a lease one payment at a time: the tax is added to each monthly payment, so you pay it as you go.