Indiana Auto Tax Calculator

How Indiana Auto Tax Works

In Indiana, vehicle taxes are calculated based on several factors including the vehicle's value, type, and registration status. The primary taxes include:

• Vehicle Registration Fee
• Sales Tax (if applicable)
• Use Tax (for vehicles purchased out of state)
• Title Fees
• License Plate Fees

Vehicle Registration Fee

The base registration fee in Indiana is $20 for the first year, with additional fees for subsequent years. The fee increases with the vehicle's value:

Sales Tax

Indiana has a state sales tax rate of 7%. This applies to the purchase price of the vehicle plus any applicable fees.

Use Tax

If you purchase a vehicle from out of state without paying sales tax, you may be subject to Indiana's use tax at the same 7% rate.

Formula Explained

The total Indiana auto tax is calculated by summing several components:

Where:

• Registration Fee = Base Fee + (Vehicle Value × Rate)
• Sales Tax = Purchase Price × 7%
• Use Tax = (Purchase Price + Fees) × 7% (if applicable)
• Title Fees = $25 (standard fee)
• License Plate Fees = $10 (standard fee)

Worked Examples

Example 1: New Vehicle Purchase

For a $25,000 vehicle purchased in Indiana:

• Registration Fee: $20 + ($25,000 × 0.01) = $220
• Sales Tax: $25,000 × 7% = $1,750
• Title Fees: $25
• License Plate Fees: $10
• Total: $220 + $1,750 + $25 + $10 = $1,995

Example 2: Out-of-State Purchase

For a $20,000 vehicle purchased out of state:

• Registration Fee: $20 + ($20,000 × 0.01) = $220
• Use Tax: ($20,000 + $220 + $25 + $10) × 7% = $1,449
• Title Fees: $25
• License Plate Fees: $10
• Total: $220 + $1,449 + $25 + $10 = $1,704