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Indiana car sales tax at a glance
| Indiana | |
|---|---|
| Tax | sales tax |
| State rate | 7% |
| Average with local taxes (2026 (Tax Foundation midyear, July 1)) | 7% |
| Counties and cities add tax | No |
| Trade-in lowers the tax | Yes, tax is on the price minus the trade |
| Leases | Tax on each monthly payment |
Checked on the state's official sources on 2026-11-02. Rates change; the state's revenue department has the last word.
How to work out Indiana sales tax on a car
Multiply the taxable price by the rate. In Indiana the trade-in comes off first.
A $30,000 car with a $5,000 trade: $25,000 x 7% = $1,750 at the state rate.
7% statewide, no local sales tax. Manufacturer rebates known at the sale are part of the taxable price.
Trade-ins
Deductible only for like-kind exchanges (motor vehicle for motor vehicle) where the trade-in is owned and titled in the customer's name; spouses count as one person (DOR Bulletin #28S, May 2026).
Leasing a car in Indiana
Tax on each monthly payment. Indiana: the lessor collects 7% at lease origination on amounts due then and on each periodic payment as it comes due (DOR Bulletin #28L); manufacturer lease rebates are not deductible. The lease calculator uses Indiana's method when you pick the state.
Dealer doc fees
No cap found.