Search results
Taxes in Indiana are almost entirely authorized at the state level, although the revenue is used to fund both local and state level government. The state of Indiana 's income comes from four primary tax areas. Most state level income is from a sales tax of 7% and a flat state income tax of 3.05%. The state also collects an additional income tax ...
- Indiana Sales Tax on Car Purchases
- How Are Trade-Ins Taxed?
- How Are Rebates and Dealer Incentives Taxed?
- Indiana Documentation Fees
Vehicles purchases are some of the largest sales commonly made in Indiana, which means that they can lead to a hefty sales tax bill. This page covers the most important aspects of Indiana's sales tax with respects to vehicle purchases. For vehicles that are being rented or leased, see see taxation of leases and rentals. Indiana collects a 7%state s...
Many dealerships allow you to trade-in your old carin exchange for a credit applied to the price of a new vehicle. For example, you could trade-in your old car and receive a $5,000 credit against the price of a $10,000 new vehicle, making your out-of-pocket cost only $5,000. In Indiana, the taxable price of your new vehicle will be considered to be...
Many dealers offer cash incentives or manufacturer rebates on the sticker price of a vehicle in order to encourage sales. For example, a $1,000 cash rebate may be offered on a $10,000 car, meaning that the out of pocket cost to the buyer is $9,000. Indiana taxes vehicle purchases before rebates or incentivesare applied to the price, which means tha...
Dealerships may also charge a documentation feeor "doc fee", which covers the costs incurred by the dealership preparing and filing the sales contract, sales tax documents, etc. These fees are separate from the taxes and DMV fees listed above. The average doc fee in Indiana is $1501, andIndiana law does not limit the amount of doc fees a dealer can...
There are a few ways that you can legally get out of paying sales tax on your new used car. Here are your best options. ...
When you buy a car, you have to pay Indiana sales tax on the purchase, plus excise tax to register the vehicle. The state charges a 7% sales tax on the total car price at the moment of registration. Although trade or dealer discounts are taken off from the sales price, any manufacturer discounts are not deducted from the sales price for tax ...
- (317) 814-7520
2024 Indiana Sales Tax Changes There have been no changes to the Indiana sales tax of 7%, or local sales taxes within the state, over the last year. We will update this page monthly with any rate changes that may occur in the future.
With respect to motor vehicle sales, State Y has a 5% sales and use tax on vehicles, capped at $500. The motor vehicle is purchased for $20,000. The Indiana sales tax is 5% of $20,000, which would be $1,000. Even though State Y has a $500 cap, Indiana imposes no such limit, so the dealer must collect the full $1,000 in Indiana sales tax.
People also ask
Do you pay sales tax on a car in Indiana?
How much does it cost to sell a car in Indiana?
Does Indiana impose sales tax?
Does Indy auto Man collect sales tax?
What is the tax rate in Indiana?
Do I have to pay tax on dealer rebates in Indiana?
Jan 30, 2024 · You can expect to pay 7% in vehicle sales tax in Indiana. Learn everything you need to know about Indiana car sales tax so you can make an informed purchase. Key Takeaways. Indiana vehicle sales tax is 7% statewide. State sales tax applies to new and used cars, but not to the trade-in value of a car.
