Indiana car tax
Indiana charges a yearly vehicle excise tax in place of property tax, paid with BMV registration. The tax is a fixed dollar amount from a table based on the car's original MSRP class and its age. Some counties and cities add a county or municipal excise or wheel tax.
IC 6-6-5. Vehicle excise tax set by class (from the original MSRP) and age (the registration year minus the model year; age 9 and older uses the last column). Model year 1980 and older pays $12. Counties and cities that adopted a vehicle excise surtax or wheel tax add it on top (not included here).
Indiana car tax calculator
- MSRP $35,000 (Class 16 ($35,000–$42,499)), vehicle age 2 yr: $355 from the state table
Based on the manufacturer's original list price (MSRP), not what you paid. Your bill may be prorated for months you owned the car.
How the tax drops as a $35,000 car ages in Indiana
Same car, each year of ownership. The rate falls as the car gets older.
Buying a car in Indiana: one-time tax
Indiana sales tax on vehicles — 7%. Your trade-in is subtracted before tax.
Registration and due dates
Passenger car registration is $21.35. Every registration also pays a $15 transportation infrastructure improvement fee. Hybrids add $81, EVs add $242, and a title costs $15.
Paid every year with registration renewal. The renewal deadline depends on the first letter of your last name, from January through December.
Cut what your car costs in Indiana
Car tax is set by your town, but your loan and insurance aren't. Refinancing a car loan at a lower rate often saves more each year than the tax itself.
Questions
How is the Indiana excise tax calculated?
The BMV looks up a fixed amount using the car's class (from original MSRP) and its age. For example, a new car with an MSRP of $42,500 or more pays $532.
Do some counties add more?
Yes. Many counties and some cities charge a county or municipal vehicle excise tax or wheel tax with registration.
Do I get excise back if I sell my car?
Yes. You can get a prorated credit or refund (State Form 55296) when you sell the car, it is totaled, or you register it in another state.
Sources
Last checked October 14, 2026. Rates are for passenger cars owned by individuals; leased, business and specialty vehicles can differ. Confirm with your tax collector or commissioner of the revenue.