Indiana Car Sales Tax Calculator – Fast, Free & Accurate

What Is Indiana’s Car Sales Tax?

When you purchase a vehicle in Indiana, the state charges a flat 7% sales tax. Unlike some states, Indiana doesn’t have county or city add-ons — it’s one simple statewide rate.

Here’s the key point: the tax is calculated on the vehicle’s price after trade-in value has been deducted. That means if you trade in your old car, your taxable amount goes down.

For example:

• Vehicle price: $28,000
• Trade-in value: $6,000
• Taxable amount: $22,000
• Sales tax: $1,540 (7% of $22,000)

How the Indiana Car Sales Tax Calculator Works

The calculator makes this process simple. Instead of doing the math manually, you just enter two numbers:

1. Vehicle Price ($) – The price of the car you’re buying.
2. Trade-in Value ($) – The value of your old car if you’re trading it in.

Once you click “Calculate,” the tool shows:

• Your taxable amount after trade-in
• Indiana’s 7% sales tax rate
• Your total estimated tax

If you make a mistake or want to try a new number, just hit “Reset” to clear the fields.

Try the calculator here:

Why Use the Calculator Before Buying a Car?

Car shopping can be exciting, but many buyers forget to include taxes in their budget. A quick calculation can help you:

• Plan your total budget – Avoid being caught off guard at the dealership.
• Understand trade-in impact – See how much you save in taxes when trading in your old car.
• Compare scenarios – Test different vehicle prices and trade-in values to make smarter financial decisions.

Common Questions About Indiana Car Sales Tax

Do trade-ins always reduce sales tax?

Yes. Indiana deducts the value of your trade-in before applying the 7% tax.

Are rebates or dealer incentives taxable?

Yes. Rebates and discounts do not reduce the taxable amount — only trade-ins do.

What if I buy from a private seller?

Sales tax still applies. You’ll pay the tax when you register the vehicle at the BMV (Bureau of Motor Vehicles).