Indiana Car Sales Tax Calculator
Estimate the 7% sales tax on a vehicle purchase in Indiana. The tax is calculated on the vehicle price after the trade-in value has been deducted.
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 $22,000)
How the Indiana Car Sales Tax Calculator Works
The calculator makes this process simple. Instead of doing the math manually, you just enter two numbers:
- Vehicle Price ($) – The price of the car you’re buying.
- 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).
Calculate Car Sales Tax by State with Our Free Calculator
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