What is the sales tax on cars in Indiana?

Indiana charges its 7% state sales tax on vehicle purchases, with no local sales tax, on the price after any trade-in.

Indiana Sales Tax on Cars & Registration Fee Calculator 2026

Q: How much does it cost to register a car in Indiana?

Every year you pay the $21.35 passenger registration fee, the $15 Transportation Infrastructure Improvement Fee and a vehicle excise tax set by the car's original MSRP class and age, from $12 up to $532. Some counties and cities add a surtax or wheel tax, electric vehicles add $242 and hybrids $81.

Q: How is the Indiana vehicle excise tax calculated?

The BMV puts the vehicle into one of 17 classes by its manufacturer's original retail price, then finds its age by subtracting the model year from the year registration is due. A table sets the excise for each class and age, falling as the vehicle gets older.

By Mohamed SkhiriUpdated November 7, 2026

Indiana sales tax on cars

Indiana sales tax on cars is 7% of the price after your trade-in, the same in every county, with no local sales tax. On a $30,000 car with a $5,000 trade-in, that's $1,750.

Indiana automobile sales tax, often searched as auto sales tax in Indiana, is collected by the dealer on a dealer sale, or paid to the BMV when you title a car bought from a private seller or out of state. The 7% applies to new and used vehicles alike. Because there's no local add-on, the only things that change your sales tax are the price and your trade-in.

How much does it cost to register a car in Indiana?

Indiana registration has a small fixed part and a value-based part. Every year you pay:

Indiana BMV registration fees
Item	Amount
Passenger vehicle registration fee	$21.35
Transportation Infrastructure Improvement Fee	$15.00
Vehicle excise tax (class and age, below)	$12 – $532
Electric vehicle supplemental fee	$242.00
Hybrid vehicle supplemental fee	$81.00
Certificate of title (new owners)	$15.00
Administrative penalty for late registration	$15.00

Some counties and municipalities also charge a vehicle excise surtax or wheel tax, which the BMV collects with your registration. The BMV publishes the list of local rates.

Indiana vehicle excise tax table

The excise tax replaces a property tax on vehicles. The BMV sets each vehicle's class from its manufacturer's original retail price, which stays fixed for life, and its age by subtracting the model year from the year the registration is due. The table below is the BMV's passenger vehicle excise schedule.

Indiana passenger vehicle excise tax by class and age
Class	Original MSRP	Age 0	1	2	3	4	5	6	7	8	9+
1	$0 – $1,499	$12	$12	$12	$12	$12	$12	$12	$12	$12	$12
2	$1,500 – $2,249	$36	$30	$27	$24	$18	$12	$12	$12	$12	$12
3	$2,250 – $2,999	$50	$50	$42	$33	$24	$18	$12	$12	$12	$12
4	$3,000 – $3,999	$50	$50	$50	$50	$48	$36	$24	$18	$12	$12
5	$4,000 – $5,499	$66	$57	$50	$50	$50	$50	$42	$24	$12	$12
6	$5,500 – $6,999	$84	$74	$63	$52	$50	$50	$49	$30	$18	$12
7	$7,000 – $8,499	$103	$92	$77	$64	$52	$50	$50	$40	$21	$12
8	$8,500 – $9,999	$123	$110	$93	$78	$64	$50	$50	$50	$34	$12
9	$10,000 – $12,499	$150	$134	$115	$98	$82	$65	$52	$50	$40	$12
10	$12,500 – $14,999	$172	$149	$130	$112	$96	$79	$65	$53	$50	$12
11	$15,000 – $17,999	$207	$179	$156	$135	$115	$94	$78	$64	$50	$21
12	$18,000 – $21,999	$250	$217	$189	$163	$139	$114	$94	$65	$50	$26
13	$22,000 – $24,999	$300	$260	$225	$184	$150	$121	$96	$65	$50	$30
14	$25,000 – $29,999	$350	$304	$265	$228	$195	$160	$132	$91	$50	$36
15	$30,000 – $34,999	$406	$353	$307	$257	$210	$169	$134	$91	$50	$42
16	$35,000 – $42,499	$469	$407	$355	$306	$261	$214	$177	$129	$63	$49
17	$42,500 and over	$532	$461	$398	$347	$296	$242	$192	$129	$63	$50

Model-year 1980 and older passenger vehicles, light trucks and motorcycles pay a flat $12 excise.

Worked example

A new car with a $32,000 MSRP, bought for $30,000 with a $5,000 trade-in

Sales tax: ($30,000 − $5,000) × 7% = $1,750.00
Excise: class 15 ($30,000–$34,999), age 0 = $406
BMV: $21.35 + $15 + $406 + $15 title = $457.35
Total: $2,207.35. Next year the excise drops to $353.

Trade-ins and private sales

A vehicle traded in as part of the purchase reduces the taxable price, so you pay 7% only on the difference. On a private purchase, you pay the 7% sales tax at the BMV when you title the car, along with the title and registration fees. Indiana collects its sales tax on cars bought out of state by Indiana residents too, with credit for tax paid to the other state.

Frequently asked questions

Does Indiana have local sales tax on cars?

No. The 7% state rate applies statewide. Some counties and cities add an excise surtax or wheel tax to the yearly registration instead.

How much is car registration in Indiana for an older car?

For a car nine or more years old the excise drops to between $12 and $50 depending on its class, so the total is about $48 to $86 a year before any local surtax.

Is the Indiana excise tax based on what I paid?

No. It's based on the manufacturer's original retail price, which sets the class, and on the vehicle's age.

What's the penalty for late registration in Indiana?

The BMV charges a $15 administrative penalty for late registration.

Sources

This calculator gives an estimate. The BMV or your dealer calculates the final amount. How we calculate

Indiana Sales Tax on Cars & Registration Calculator

Indiana registration fee calculator

Indiana sales tax on cars

How much does it cost to register a car in Indiana?

Indiana vehicle excise tax table

Worked example

A new car with a $32,000 MSRP, bought for $30,000 with a $5,000 trade-in

Trade-ins and private sales

Frequently asked questions

Sources

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