Car ownership costs in Indiana
What it costs to own a car in Indiana beyond the sticker price - sales tax, annual registration, vehicle property tax, inspection requirements, and title fee.
- Vehicle sales tax
- 7%
- Indiana imposes a flat 7% state sales/use tax on motor vehicle purchases (new or used), confirmed by DOR Sales Tax Information Bulletin #28S. There are NO local/county sales tax add-ons in Indiana — 7% is the single statewide rate. Trade-in value reduces the taxable price, but only for "like-kind exchanges" (motor vehicle for motor vehicle, trailer for trailer) where the trade-in is owned and titled in the customer's name.
Sales tax: source checked · 2026-Q2 Official source
- Annual registration fee
- ~$21/yr
- Per the official BMV Fee Chart (Revised 1/1/26), the base passenger motor vehicle registration fee is $21.35, renewed annually. This is on top of: (1) an annual vehicle excise tax based on vehicle class/value and age, (2) a $15 Transportation Infrastructure Improvement Fee, and (3) county/municipal vehicle excise or wheel taxes that vary by county. EVs add a $242 supplemental fee and hybrids add $81.
Registration fee: source checked · 2026-Q2 Official source
- Vehicle property tax
- Yes — annual tax on vehicle value
- Indiana levies an annual vehicle excise tax (an ad valorem-style tax) calculated from the vehicle's class — based on the manufacturer's original retail price — and its age, paid each year at registration.
Vehicle property tax: source checked · 2026-Q2 Official source
- State inspection
- Required
- No statewide safety inspection; emissions/tampering inspections are required every 2 years only for vehicles registered in Lake and Porter counties (Northwest Indiana), with vehicles under 4 model years old, pre-1976 vehicles, EVs, diesels, and motorcycles exempt.
Inspection rule: source checked · 2026-Q2 Official source
- Title fee
- ~$15
- One-time fee at purchase. Amount may vary.
- Example: $35,000 vehicle
- Sales tax: $2,450
- + $21/yr registration + annual property tax
How state fees affect your car's true cost in Indiana
When you buy a vehicle in Indiana, the first state cost you'll face is the sales tax of 7%. On a $35,000 vehicle, that's roughly $2,450 due at the time of purchase — in addition to the dealer's price.
After the purchase, Indiana charges an estimated $21 per year to register the vehicle. Per the official BMV Fee Chart (Revised 1/1/26), the base passenger motor vehicle registration fee is $21.35, renewed annually. This is on top of: (1) an annual vehicle excise tax based on vehicle class/value and age, (2) a $15 Transportation Infrastructure Improvement Fee, and (3) county/municipal vehicle excise or wheel taxes that vary by county. EVs add a $242 supplemental fee and hybrids add $81.
Indiana also levies an annual personal property tax on vehicles. The amount depends on your vehicle's assessed value and your local jurisdiction. Indiana levies an annual vehicle excise tax (an ad valorem-style tax) calculated from the vehicle's class — based on the manufacturer's original retail price — and its age, paid each year at registration. This recurring cost can add hundreds of dollars per year for newer or more expensive vehicles.
Indiana requires periodic vehicle inspections. No statewide safety inspection; emissions/tampering inspections are required every 2 years only for vehicles registered in Lake and Porter counties (Northwest Indiana), with vehicles under 4 model years old, pre-1976 vehicles, EVs, diesels, and motorcycles exempt. Inspection fees are typically $20–$70 depending on the station and vehicle type.
Calculate your full 5-year ownership cost in Indiana
The TCO calculator pre-fills Indiana's sales tax and registration fee. Add your purchase price, loan terms, fuel type, and insurance to see the complete picture.
Open TCO calculatorFrequently asked questions
What is the car sales tax in Indiana?
The vehicle sales tax rate in Indiana is 7%. On a $35,000 vehicle that works out to roughly $2,450 at the time of purchase. Indiana imposes a flat 7% state sales/use tax on motor vehicle purchases (new or used), confirmed by DOR Sales Tax Information Bulletin #28S. There are NO local/county sales tax add-ons in Indiana — 7% is the single statewide rate. Trade-in value reduces the taxable price, but only for "like-kind exchanges" (motor vehicle for motor vehicle, trailer for trailer) where the trade-in is owned and titled in the customer's name.
How much is vehicle registration in Indiana?
The estimated annual vehicle registration fee in Indiana is around $21 per year. Per the official BMV Fee Chart (Revised 1/1/26), the base passenger motor vehicle registration fee is $21.35, renewed annually. This is on top of: (1) an annual vehicle excise tax based on vehicle class/value and age, (2) a $15 Transportation Infrastructure Improvement Fee, and (3) county/municipal vehicle excise or wheel taxes that vary by county. EVs add a $242 supplemental fee and hybrids add $81.
Does Indiana have a vehicle property tax?
Yes. Indiana levies an annual personal property tax on vehicles. The rate varies by locality and vehicle value. Indiana levies an annual vehicle excise tax (an ad valorem-style tax) calculated from the vehicle's class — based on the manufacturer's original retail price — and its age, paid each year at registration.
Is a vehicle inspection required in Indiana?
Yes. Indiana requires periodic vehicle safety (and in some areas emissions) inspections. No statewide safety inspection; emissions/tampering inspections are required every 2 years only for vehicles registered in Lake and Porter counties (Northwest Indiana), with vehicles under 4 model years old, pre-1976 vehicles, EVs, diesels, and motorcycles exempt.
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