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BMV > Titles > Indiana's Sales Tax Indiana's Sales Tax

Many auto dealers around Indiana are partnering with the BMV to offer title and registeration services with a vehicle purchase. Additionally, you may now complete a number of transactions online such as registering a new vehicle, ordering duplicate titles, and updating personal information, by establishing a personal myBMV account.

On April 1, 2008, Indiana adopted a seven percent sales tax. State law requires Indiana residents to pay a seven percent sales tax on any newly-purchased vehicle. If a vehicle is purchased from a dealership, the dealer will collect the sales tax. If a vehicle is sold privately, the sales tax must be paid at a license branch when the purchaser titles the vehicle.

Motorists who purchase a vehicle from an out-of-state dealer or individual will receive credit for taxes paid in that other state. If the motorist paid less than seven percent they will need to pay the difference to Indiana.

Some states will allow a person to purchase a vehicle and not pay taxes on it when taking it out of that state. Other states will tax the transaction. Depending on the percentage of tax paid to the other state, the Indiana resident may be charged or credited the difference between the other state's sales tax and Indiana's sales tax.

Still Have Questions? Contact The BMV

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