Out-the-door price in Indiana

How Indiana works

• Indiana sales tax is 7%, flat statewide. No county or city adds to it u2014 the county taxes you may be thinking of are income taxes, and the local vehicle charges are separate registration surtaxes rather than sales tax.
• Your trade-in reduces the taxable amount with no dollar cap, on new and used purchases alike. It has to be a like-for-like swap though: a vehicle for a vehicle. Trading a motorcycle toward a car does not qualify, and the trade has to be titled in your own name.
• Manufacturer rebates are taxed in Indiana. The Revenue Department treats a rebate as a form of payment rather than a price reduction, so tax is figured before it. A dealer's own discount does lower your taxable amount.
• The doc fee is taxable, and the effective ceiling is $261.72. That figure is re-indexed for inflation every July 1 and is published by the Secretary of State as a non-enforcement threshold rather than a hard statutory cap u2014 the statute itself still says $200.
• Indiana requires the doc fee to be built into the advertised price. If you are working from an advertised number, the fee should already be inside it u2014 adding it again would double-count.
• Extended warranties and optional service contracts are not taxed in Indiana. Optional maintenance contracts can be, which is a different product.
• Registration and plates are not included in the total above. In Indiana the dealer handles the sales tax and your title, but you register at the BMV yourself u2014 see the ownership notes for what to budget.

Rules last verified Oct 1, 2026. Our methodology.

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